” 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.
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
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.
Make sure that the person you pick has experience and education that has been verified. It might be hard to check if they have what they say, so you may need to trust what they say about themselves.
Step 4 – Selecting the Ideal Freelance Developer
It is time to select the most appropriate developer from the group of candidates. This procedure could include conducting interviews or skill assessments.
Step 5 – Contracting and Relationship Management
When you outsource work, talk to the other person and make sure you both understand. Look at the deal and the rules carefully. Write down all the rules in a contract so that everyone knows what is expected. After the contract, don’t forget to trust your freelance developer as a business partner and maintain an ongoing relationship to achieve the best project outcomes.
Elancer Freelancer Matching Process
Step 1: Project Registration and Assignment of a Dedicated Manager
When a company registers a project, a dedicated manager from Elancer is assigned to conduct an initial consultation.
Step 2 – Manager’s Candidate Recommendation and Applicant Selection
The dedicated manager recommends tailoring candidates suitable for the company’s project.
Step 3 – Meeting and Contracting
The Elancer manager supports administrative tasks related to contracting.
Step 4 – Project Execution and Completion
From the start to the end of the project, if you need any assistance regarding the contracted freelancer, utilize Elancer’s customer service support.
→ Explore the Elancer company introduction
