Learn about the pros and cons of outsourcing freelancers and full-time employees, and explore which ones are the right fit for your company.
In this blog, we will discuss:
- Why Outsourcing is the Better Choice?
- Freelancers vs Full-Time Employees: A Brief Comparison
- Pros and Cons of Outsourcing Freelancers
- Pros and Cons of Outsourcing Full-Time Team Members
- Final Thoughts
Key Takeaways
- Outsourcing is gaining popularity among SMEs and startups that are looking to cut overhead costs without compromising on work efficiency.
- Freelancers come in handy for short-term project work or recurring tasks. For instance, if you need to release a promotional video but still haven’t hired a multimedia artist, you can easily find one on freelancing platforms.
- Outsourcing full-time employees can help save you up to 70% in labor costs and bridge gaps between work efficiency and business goals.
- Outsourcing allows you to partner with reputable companies, helping you handpick global talent. This flexibility allows you to recruit professionals who match your organizational needs.
Outsourcing has become a staple of business; it is no longer just a buzzword.
This is a fantastic method for expanding your workforce when necessary, without the excessive spending. In other statistics, the global outsourcing market’s value reached US$ 280.64 billion in 2023 as so many companies are investing in it.
However, here comes the big decision: will you hire freelancers or full-time employees? Both come with their benefits and challenges, and your business needs will determine the best option.
In this extensive blog, we will go through each and every aspect of outsourcing freelancers and full-time employees.
So, if you are looking to decide between the two, you are in the right place!
Why Outsourcing is the Better Choice?
Traditional hiring is still a go-to choice for many companies around the world. However, outsourcing is gaining popularity among SMEs and startups that are looking to cut overhead costs without compromising on work efficiency.
When you outsource, you are not responsible for paying heavy salaries and offering employment benefits. On the other hand, in-house teams are more expensive because not only are you paying them a higher price, but you are also responsible for providing employee training programs, office space, and equipment.
Let’s discuss this in detail!
Lower Wage Cost
As per the data on Talent.com, the average salary of an office-based job in the US is around $36,085 per year ($17.35 per hour).
For this much amount, you can easily outsource an entire team because the outsourcing companies recruit from regions with lower cost of living and wage range.
Also read: Why You Should Outsource Bookkeeping Services for Your Business
No Office Space Required
While calculating the cost of an in-house team, employers usually skip on one of the most important aspects: office space.
Renting a commercial property can be expensive. According to Office Market Report 2025, the average US office listing rate was $33.11 per square foot. This means more employees will need more space, and hence more overhead costs!
A new startup can easily avoid the need of having an extensive office by simply shifting to the outsourcing model and can easily run a full-fledged company with a small work space with minimal expenses.
Save Yourself from Never-Ending Hiring Cycle
Recruiting talent is anything but easy.
Not only do you need to invest your valuable time to find the right profile, but you will also have to invest a huge amount of money and valuable resources in the pursuit. On the other hand, you can partner with an outsourcing company that will handle the entire recruitment princess for you.
By leveraging their networks, a reputable outsourcing company can easily help you onboard top global talent while also providing support to scale up or down as per your business needs.
Also read: Here’s How You Can Save Up to 70% in Labor Costs by Outsourcing
Freelancers vs Full-Time Employees: A Brief Comparison
Here is a brief comparison between the two hiring models. This side-by-side analysis
will give you an idea of who you should opt for while hiring for your business.
| Parameters | Freelancers | Full-Time Employees |
| Commitment | Project-based contract for short-term periods | Long-term contract employees aligned with business vision and goals |
| Cost | Charges per project (depending on the complexity of work), relatively less expensive | Charges on a monthly basis and is comparatively more expensive, helps you save on quality work over time |
| Versatility | Can be very flexible, ideal for short one-time projects | Provides flexibility and continuous support, allows your business to scale with ease |
| Supervision | They require clear communication about the work and deadlines, require constant supervision and quality control | They are fully aligned with company goals and require less supervision once they are onboarded |
| Job Type | Contract based, they might be working on multiple project at a time | Full-time, they work exclusively for your company and ensure consistency and success |
| Equipment/ Software | They will use their own equipment, software, and other tools required to get the job done | They will use their own equipment, software, and other tools required to get the job done, the company can also provide with the tools and equipment depending on the contract |
Also read: In-House vs. Outsourcing: Which One is More Effective for Your Business?
Pros and Cons of Outsourcing Freelancers
Freelancers come in handy for short-term project work or recurring tasks. For instance, if you need to release a promotional video but still haven’t hired a multimedia artist, you can easily find one on freelancing platforms.
Pros of Hiring Freelancers
- Access to skilled professionals made easy. On different freelancing sites, you can readily search for the Freelancers that provide the service you are looking for and in a price range that suits your needs.
- Reduced operational costs. When you work with a freelancer, you only pay for the service you require and only when you require it.
- Direct communication. Since you work directly with individual independent contractors, you are free to tell them directly about the tasks they have to do.
Cons of Hiring Freelancers
- Quality issues with work. Revisions are allowed, but some freelancers charge an extra fee for revisions. As a result for freelancers that are paid by the hour, they render more hours and eventually end up billing an inflated invoice.
- There is a need to find a freelancer for every new project. Your contract ends when a freelancer has delivered the work. When you require their service again, they may not be available. Therefore, you have to seek another freelancer that can do the work.
Also read: Why Outsourcing Customer Service is the Smartest Move for Growing Your Business
Pros and Cons of Outsourcing Full-Time Team Members
Outsourcing full-time employees can help save you up to 70% in labor costs and bridge gaps between work efficiency and business goals. It is one of the cost-effective methods to engage employees for long-term projects while delivering optimal growth.
Pros of Outsourcing Full-Time Team Members
- Outsourcing allows you to partner with reputable companies, helping you handpick global talent. This flexibility allows you to recruit professionals who match your organizational needs.
- Outsourcing companies are professional and provide exceptional services to stay competitive. This means you don’t need to worry about quality control to ensure reliable performance
- Unlike freelancers, you can rely on your outsourced staff to handle administrative tasks. This extended help allows your in-house team to focus on core business competencies.
- When it comes to data security, you can easily trust an outsourced employee over a random freelancer. The recruitment companies take data protection as their top priority and adhere to strict regulations to ensure compliance and maintain trust.
Cons of Outsourcing Full-Time Team Members
- You may have little control over your outsourced team based on the outsourcing model you choose.
- You must also be ready for potential language and culture differences if you decide to outsource to other countries. Selecting a country that has a high proficiency in English and culture similar to your country can help you with this concern.
- You also need to guard against possible hidden costs. This can vary tremendously, so wherever possible, request a detailed and open breakdown from your service provider.
Also read: Overcoming Recruitment Challenges with Remote Hiring
Final Thoughts
Both freelancers and full-time employees have their own set of benefits.
Freelancers are hired when flexibility is needed, making them the ideal candidate for short-term projects, while full-time employees offer stability and may be more desirable in the long-term.
Consider the factors above when deciding between either of the two.
When you are ready to optimize your workforce, OWL TPS can help you. We can help you create and lead full-time offshore teams that help you reach your business objectives.
We take your financial success seriously. That is why we are the perfect fit for businesses looking to onboard a remote team of accounting professionals for comprehensive ongoing support.
Contact us now and empower your core employees so they can focus on high-value tasks to drive growth and success.
