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DIY outsourcing vs hiring an outsourcing company

Outsourcing talents especially in locations where labor is more affordable is definitely a huge help for a lot of startups and small businesses who want to get the most bang out of their bucks. Websites such as Upwork (formerly Odesk), Freelancer, Fiverr and Elance have long been the go-to place for small and medium business owners who are looking to outsource talents in countries like the Philippines.

While these websites offer a legitimate way of hiring talent, these are clearly not for everyone. As with any type of product or service on the market, the best choice for each business varies depending on their specific needs. Although hiring freelancers are oftentimes less expensive and complicated to work with, there are instances where asking the help of an outsourcing company makes more sense.

Here are a few things you want to consider when deciding between hiring freelancers or an outsourcing firm.

Infrastructure and capabilities

The type of task you’re planning on outsourcing has a huge impact on which option to choose when getting external help for a task or project. Freelancers tend to provide services that are simple and non-critical. On the other hand, a bigger organization such as an outsourcing company can handle more complex processes for a business. Moreover, due to their larger size, they are able to support data-intensive processes and can usually provide their people with better equipment to work on tasks and projects.

Time and Scaling

Another important thing to consider when making the decision to outsource is time and scaling. Long-term projects are better handled by outsourcing companies and agencies as they require businesses to sign a (medium-term to long-term) contract that makes up for a more stable working relationship.

In contrast, freelancers offer a more flexible means of doing work. Their work is able to adjust based on the current need of the business. However, the flip side of this is that freelancers can also easily decide to stop working for a business (for whatever reason), which could potentially stop operations in its tracks. Moreover, agencies are more capable than freelancers to scale business processes. This is because they have a ready pool of talents that they can tap whenever their business partner’s needs rise.

Scope of Services

The same network of talents also allows outsourcing companies to offer end-to-end solutions to businesses. Although freelancers can also recommend their personal contacts for the job, an outsourcing company’s existing database is still more convenient as they have already prescreened the candidates allowing them to match the right people with the needs of the business at a faster pace.


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KDCI is a global provider of customized outsourcing solutions.We specialize in various business functions and practices ranging from back office support and design & branding, to contact center and web & app development services. CONTACT US now to learn more about our outsourcing solutions.