Home Business Technology Outsourcing Industry Analysis: Small Company Vs Individual Freelancer

Outsourcing Industry Analysis: Small Company Vs Individual Freelancer

Source: Freepik

Did you know that in 2020, the global IT outsourcing market was estimated to be worth around $66.5 billion?

Quality website and a foolproof development process are dire needs to thrive in today’s competition. It is a crucial task, and many organizations fail to carry out a comprehensive job leading to a loss of revenue and sales.

It may not always be feasible to maintain a full team in-house for website design and development, digital marketing, or creating your enterprise app. It requires infrastructure, cost, and also suitable candidates to run things effectively. In the face of such a situation, outsourcing the whole process is becoming a popular choice for small and medium businesses.

According to a study by Clutch, over 27% percent of companies are currently outsourcing various business activities to work with external agencies. 

Outsourcing your Business Activities

Being in the business for many years, we have come across various companies who have been hesitant to outsource their business activities to offshore firms. 

Most often though, they have always regretted the fact they did not make timely decision to outsource which caused them heavily.

Outsourcing of the business modules is the newly fabricated formula to catalyze the rapidly changing business environment. The outsourcing strategy for running a business, big or small, is positively embraced by the business leaders experiencing a powerful growth of the organization. 

Source: Freepik

Outsourcing finds existence due to different factors. Here is a look at a few of them.

– Lack of time for business organizations,

– Lack of expertise, 

– Lack of technology, 

– Lower marketing budgets, 

– Rapid growth trajectory, 

– Multiple geographical locations of the business and other factors.

Thanks to the easy accessibility of technology, qualified professionals around the world can get connected and achieve the business goals together. The volume of offshore work outsourced to countries like India has grown in a significant volume over the years. Between 2009 and 2012, it recorded a growth of 16% to score way over their western counterparts.

Freelancer Vs Outsourcing Agency

Now the question that arises – who you should hire, a freelancer or an agency?

It is a highly debated topic, and you will find articles all over the internet claiming the advantages of both. We have taken this from our personal experience and what we believe is that you need to strike a balance.

What do we mean by balance?

Well, you neither go for a freelancer or a full-fledged offshore agency with hundreds of employees. Freelancers can be unreliable, and big agencies may not give enough importance to your project if you are a small or medium business.

 The best, in our opinion, is to go for medium-sized agencies who have a dedicated team of qualified and experienced professionals ready to devote their complete time and effort towards your requirements.

What are the Benefits of a Small Agency?

There are many ways a small to medium agency will benefit your business projects. Let us tell you how! 

1.    Cost

Freelancers can come dirt cheap and agencies can charge you thousands of dollars! The problem is – you just cannot be guaranteed of assured quality or dedication. When we consider small agencies, their fees are quite affordable, and it also depends on your business requirements.

As they have a small team, it does not require high operational costs. Hence, they can charge a competitive charge for their work.

2.    Time

A small agency will devote its whole team to your project to meet the deadline. Freelancers always have the habit of disappearing, except a few reliable ones. Big agencies jumble multiple projects, and the team’s efforts are divided across projects which render high chances of delay.

3.    Flexibility

Time is money in business. A faster and enriched result yields a better growth. Bug firms are less flexible with their timings or operations and maintain their own schedule. Freelancers can be quite flexible, but their availability becomes a factor. 

Small agencies, in this case, can allocate a specific team to complete the project if it is urgent. They can be flexible when the need arises and get back to a normal schedule afterward.

4.    Area of Expertise

If the business needs an expert to deliver the service, choosing a small agency is the perfect option. An agency provides a pool of talent with niche expertise quickly and solves the issues immediately. International or demographic specific requirements can also be easily be fulfilled by the Agencies.

5.    Infrastructure

Freelancers can help complete any specific business activity such as brochure designing or web content blogging in a cost-effective manner. On the other hand, an end-to-end solution for digital marketing or comprehensive management of human resource development activities requires partnering with agencies possessing related skill set and manpower.

Your business requirements may not always need you to partner with large outsourcing companies. Here the medium-sized agencies play a big part with their adequate infrastructure to meet your project requirements at an affordable cost.

From conventional marketing to digital marketing, businesses are associating themselves with outsourcing more and more. For a complete solution to business development and design, it is better to go for a small to medium-sized company. You will have a ready team of dedicated experts who can deliver a large volume of work if the need to scale arises.

Best Practices to Choose a Company

When choosing a company keep the following in mind?

•    Check out the clients of the company to find the reputation of their work

•    Browse through their past work and use their services if possible with a trial

•    Talk directly with the company representative to know if they can serve your needs

•    Decide your budget and the services you will need

You can always personalize the workflow as per your company’s requirements. You will also be able to get useful insights into detailed performance analysis provided by the companies.

Last Updated on February 22, 2024 by Go Roboted Team