News & Insights

Should you choose a software company or a freelancer for custom development?

07/01/2020

Overview

The rapid growth of information technology has transformed how businesses operate, sell, and serve customers. As a result, demand for custom software has surged — and with it, two common choices for delivery: established software companies and independent freelancers. Choosing between them can be challenging and depends on budget, scope, risk tolerance, and long‑term maintenance needs.

Company vs. freelancer: what to consider

Both companies and individuals are part of a vibrant tech market. To decide which is better for your situation, evaluate across multiple angles: capability and team size, delivery process, documentation and handover, warranty and support, legal contract and commitments, timeline reliability, and total cost of ownership.

Benefits of choosing a software company

• Clear contracts and responsibilities between both parties.
• Professional, multi‑disciplinary team delivering consistent quality (BA/PM, UI/UX, backend, frontend, QA).
• Standardized delivery process: requirements discovery, analysis & design, prototyping, implementation.
• Timely support and customer care during usage; defined SLAs.
• Greater assurance of reputation, continuity, and product quality.
• Scalability for future features, integrations, and performance needs.
• Better risk management (version control, review, backups, security practices).
• Documentation, training, and structured handover to your team.
• Legal protections through a formal contract.
• Dedicated warranty period and maintenance packages.
• More predictable timeline and resourcing when issues arise.
• Vendor viability and accountability over the long term.
• Broader technology stack support (iOS/Android, web, cloud, ERP/CRM, payments, logistics, etc.).
• Compliance with standards (security, privacy, accessibility, data retention).

When a freelancer makes sense

• Very small MVP/prototype with limited budget.
• Non‑critical internal tools where downtime risk is acceptable.
• You can directly manage scope, timeline, and changes.
• You’re comfortable arranging support/maintenance yourself.
• Short‑term experiments or proof‑of‑concepts.

Typical delivery process with a software company

1. Discovery: Gather business requirements and success criteria.
2. Analysis & Architecture: Model data, flows, and choose tech stack.
3. UI/UX Design: Wireframes, prototypes, and design system.
4. Implementation: Backend, frontend/mobile, integrations.
5. QA & UAT: Automated and manual testing; user acceptance.
6. Deployment: Infrastructure, security hardening, go‑live plan.
7. Training & Handover: Documentation and admin training.
8. Warranty & Maintenance: Monitoring, patches, feature iterations.
9. Support: Defined SLAs for incident response and change requests.
10. Governance: Contractual commitments, reporting, change control.
11. Scalability: Capacity planning for growth and peak demand.

Cost, warranty, and commitment

Freelancers can be cost‑effective for tiny scopes, but a company often lowers long‑term risk and total cost of ownership by providing documentation, source control, CI/CD, monitoring, and predictable maintenance. Ensure your partner offers a warranty period, clear SLAs, and a change management process — these protect your investment beyond initial delivery.

Risks and how to mitigate

• Single‑point dependency (freelancer): Mitigate with escrow, code hosting under your org, and detailed documentation.
• Scope creep: Use change requests and phased delivery.
• Security & compliance: Require standards and audits where relevant.
• Timeline slippage: Demand sprint plans, burndown tracking, and weekly reports.
• Knowledge transfer: Plan handover sessions and record them.