” In 10 years, half of the world’s population will be freelancers. ”

-The Economist

 

The Economist magazine has predicted that the gig economy, a term used to describe the surge in temporary work such as freelance jobs, is growing quickly due to the decline of full-time and permanent positions.  Unlike the baby boomer generation, who valued lifelong employment at a single workplace for a stable income, the values of the current generation regarding careers have changed along with the times.


More people are doing freelance work and deciding when to do their work. Companies want to outsource their projects, so they need people who can manage those projects well. The freelance market is very successful around the world right now.

 

What is Outsourcing?

The term “outsourcing” is often used to describe the process of entrusting work to an external party. Outsourcing combines the concepts of “outside” and “sourcing” to mean obtaining the required workforce from an external source, rather than internally within an organization.


To clarify
, outsourcing is when a business hires third parties like service providers and freelancers to handle some or all of their tasks in order to improve efficiency and get better project outcomes.

 

The Purpose of Outsourcing

Outsourcing can be an efficient way to operate when it is difficult to hire full-time, permanent employees, or when employing external personnel is more advantageous for a company. Many companies outsource for the following key benefits:

(1) Securing Experience and Expertise

In situations where there is a lack of suitable candidates with the necessary experience for a project, outsourcing allows for the immediate involvement of experts to ensure project quality. According to LinkedIn, a survey on the reasons for hiring freelancers found that 62% of respondents cited “experience” as the top reason, making it more efficient than investing time and money in training internal employees.

(2) Cost Savings

When sourcing personnel for a project, hiring permanent employees can be a burden for a company if full-time workers are not needed. Outsourcing specific tasks for a set period to the right candidate can reduce costs by approximately 20-30% compared to hiring permanent staff(freelancers have different benefits and taxes, and only receive payment for the project).

(3) Focus on Core Business

Outsourcing allows service providers to concentrate on their specific tasks, delivering fast and excellent results while the company’s internal staff can focus on core business responsibilities. This can create a win-win strategy for both parties.

(4) Employment Flexibility

Outsourcing alleviates the burden of unnecessarily hiring permanent employees when additional personnel is needed. By outsourcing specialized fields such as app development or web design, companies can efficiently and flexibly respond to employment needs by contracting experts for only the duration of the project.

 

 

Comparison of Advantages and Disadvantages: Outsourcing vs. Insourcing

The concept opposite to outsourcing is “insourcing”, which refers to the formation of a team within a company by selecting internal employees for specific projects or tasks. In this case, the process of hiring new employees(regular or temporary) for a specific department within a company may be involved.

 

outsourcing-vs.insourcing

For example, if a new business development project is to be carried out, appropriate personnel can be chosen from each team, and some development positions, such as app development and programming, can be filled through new hires. The key to insourcing is to form a team with employees directly affiliated with the company, rather than outsourcing.

 

Both outsourcing and insourcing have their advantages and disadvantages, so it is best to choose the one that suits the company’s situation. Let’s compare them through the following table.  

Types of Freelance Developers

 (1) Web developers

– Backend Developers should focus on scripting and architecture construction to handle server-side project features, such as product speed, performance, customization, and scalability.

 

– Front-end developers convert raw code into a graphical interface, managing the client side of web projects. They transform visual designs and layouts into usable websites, effectively implementing platforms and operating systems.

 (2) Mobile Application developers(Android / iOS)

With today’s companies investing heavily in custom app development for both customers and employees, the demand for Android and iOS app development skills is very high.

 

Designer

They are responsible for designing attractive and customer-friendly products through projects such as web design, brochure design, and logo design. They work on the aesthetics and visual images of a product, ensuring that it is easy to navigate and use. In order to create projects that make an impression, designers must understand user behavior and be familiar with the latest trends in design.

 

Project Manager(PM)

They manage the planning tasks for different projects, which may include creating a website, application, online store, or internal systems like HR systems for a company. PMs ensure the project is completed on time and within budget while ensuring that all team members are aligned on the goals of the project.

 

 

How to Successfully Outsource to Freelance Developer – A Step-by-Step Guide

Step 1 – Defining Clear Outsourcing Goals

To lead a project to success, it is important to objectively analyze your organization’s situation and clearly define the goals you want to achieve through outsourcing. Without clear goals, both the company and the freelance developer will find it difficult to understand what they want to gain from the project. 

 

During the goal-setting phase, consider the following:

Goals(e.g., hiring two developers for a new app development project through outsourcing)

Duration

Schedule

Collaboration style(e.g., on-site or remote work)

Expected skills and qualifications

 

Step 2 – Writing a Detailed and Clear Job Description

Once you have set your outsourcing goals, write a job description for the developer position needed for the project. For the new app development project example, you might need one Android developer and one iOS developer simultaneously. Describe the responsibilities, required experience, and skills in detail.

Here are some example items:

Project name

Responsibilities and scope of work within the project

Collaboration period

– Work format(on-site or remote)

Experience and portfolio

Required skills and qualifications

Offered benefits

 

Step 3 – Finding Trustworthy Freelance Developers

There are several ways to find freelance developers. In the past, it was common to find them through recruitment agencies, but in today’s digital age, many people rely on intermediary platforms with a pool of skilled developers. As the freelance market grows, various matching service platforms can be found. You can either register your project on these platforms and get matched by the platform manager or search for developers’ service ads and contact them directly.

 

When looking for developers, ensure to select individuals who have and can showcase that they possess the skills the company requires. It is not simple to review each person’s credentials one by one.

 

 Tips |
Considerations when choosing a freelance developer outsourcing market
                      

Platform manager helps match the most suitable candidate for the project

vs. 

Company representative contacts developers directly through search

Hire developers with verified experience and qualifications

Difficulty in verifying qualifications; reliance on developers’ advertisements

When hiring a freelance developer, you can use two different ways. One way is to use a platform manager who will find the best person for the project. The other way is to look for someone yourself.