Once you have decided that you will not go for an in-house software development team for yourselves, the next question that will pop up is whether to go for a software developer or a software development company. This is not an easy decision and will most defiantly impact the outcome of your product, whether it will be a success story or a failure. 

It’s important at this phase to remember that it’s not just about the cost factor but many other things that come into play here. Keep in mind here that this article is not about which option is better than the other, rather it is about which one suits you and your company the best. You need to ask yourself different kinds of questions. Whether it’s a short-term or long-term project? Do you have the resources for it to carry on for a few years? What are your project specifications? 

The decision you make regarding going for a freelancer or a software development company depends on various aspects, such as:

  • Location
  • Your business goals
  • The economy
  • What your company style is
  • The scale of your project

This article will highlight the various pros and cons of the software development process depending on whether you go for a software developer or a software development company:

Software Developer

Normally the software developer hiring process is only for one particular project. With the help of this list, you should find it easier to know what to look for when hiring a software developer.


  1. Cost: Usually the rates of a freelancer are lower than that of any software development agency. You will also not have to worry about providing any additional coverage such as health insurance, vacations dates, taxes, etc. that would have been the case if you hired a full-time software developer.
  2. Not difficult to find: In today’s world software development is in high demand. Hence it is not too difficult to find good software developers. A simple google search will find a few close to you.
  3. Skills set: If they have to make it as a freelancer then their skill set has to show it. Usually, they have certain areas that they have mastered. If those are your requirements then it will work well for you to partner with them.
  4. Not so many obligations: Software developers normally work only on contract to contract basis and do not take on too many at once. This might serve well for you to get your job done fast.


  1. Reliability: There is no guarantee that they have prioritized your project even if they are not taking on too many different projects. And further, even if you do have an NDA in place, you still need to be very careful when it comes to your ideas.
  2. Quality: This depends a lot on the attitude of the freelancer. Whether they care about the quality of your projects or not. You might be shocked to find that they might not even care to return any client’s calls.
  3. Organizational skillset: Since they do not have a complete team behind them, they might be lacking in a few areas and skills. They might be able to complete your task but it could be possible for them to not have the skills to plan and organize their schedules so this could lead to a potential delay in the deadlines.
  4. Maintenance issues: Once the contract is over, in this case, it would mean either the app is made or the website is up and running, they have also finished their obligations to you. Typically things like support, maintenance, and bug fixing are not part of their contract.

Hiring a Software Development Company

It has been found by many that in terms of the working relations, quality of product, security, and professional work, a software development company is better. They are also able to provide their clients with a host of different services during the software development life cycle. 


  1. A full package of service: If you were to go for a software development company then they will be able to provide you with all kinds of services such as idea verifications, business analysis, and monetization models. Also, an added benefit is that their teams do not just consist of one software developer doing the task. They include a host of people such as designers, developers, QAs, and other kinds of experts.
  2. Workflow is smoother: There is already an established workflow that is taking place and hence you will find that your deadline is met on time. Software companies usually have different project managers in place who check the reports, plan the next stages and direct the work.
  3. Experience: Depending on the company that you choose to partner with, they would have already had many different projects under their belt. All these projects add great value to you in terms of their experience levels. If they have an extensive portfolio, it will also give you a chance to properly assess their skill level and decide whether you want to go forward with this partnership.
  4. Keeping up with the latest technologies: It is always in the software development company’s best interest to be in touch with all the new and emerging technologies. This is how they will continue to stay at the top of their industries and grow their business. It is due to this that you will know that your project will get the best features and be current. 


  1. Cost: The most inevitable drawback to a software development company is that it is more expensive when you compare it to hiring a software developer. As you will have more people working on your project, the cost of it will be higher.
  2. Different rates: Depending on the place you choose the rate for the project will be different based on their working model. An issue of time zones also comes in here.

In conclusion, it can be said that it comes done to two points, skillset and cost. A software developer is cheaper than a software development company but they also do not come with the same kind of skills and manpower. Hence you need to make the decision based on what your company requires at the moment and which option fits right with you.