Locastic, Jul 5, 20243 min read

Why hire agencies instead of Freelancers?

When you’re starting a new project, a decision you will face is whether to hire an agency or freelancer(s). Both options have their benefits and drawbacks, but hiring an agency often provides a more robust and scalable solution. In this blog post we’ll go through a number of different benefits and drawbacks of hiring a software development agency such as Locastic.

The Benefits:

Dedicated Development Teams

An agency will provide a dedicated development team, including all necessary roles and expertise. Unlike freelancers who often specialize in one area, agencies have multidisciplinary teams consisting of designers, analysts, project managers, developers, quality assurance professionals and more. They will also have a network of other agencies and experts in the field and will be able to help you find team members with specific skills.  This ensures that all aspects of your project are covered and will relieve you of the daunting task of assembling a team on your own.

Handling of planned and unplanned absences

If someone on the project team gets sick or needs to leave, the agency handles all replacements and will onboard new members quickly and efficiently. This minimizes disruptions and keeps your project on track. Agencies will usually have the capacity to provide immediate replacements without compromising the project timeline (and budget).

Set Processes and Procedures

Agencies typically have teams that are used to working together, with established processes and procedures in place. Experienced teams will have enhanced productivity and the project will run more smoothly. The structured environment of an agency also promotes better communication and collaboration among team members.

Direct Communication Channels

Any issues can be communicated directly to the project or product manager on the agency side, reducing the complexity of managing multiple parties. This single point of contact makes it easier to address concerns and make quick decisions

Experience and Problem-Solving

You’re probably going to choose an agency based on their portfolio and recommendations, so they are more than likely to have experienced teams that have worked on the same business problems that you’re trying to solve with your new software product. This experience enables them to anticipate potential issues and implement effective solutions that save time in the long run.


Agencies can easily scale up or down depending on project requirements. Whether you need to accelerate the timeline or reduce the team size, agencies have the flexibility to adjust their resources to meet your needs. This scalability ensures that you have the right amount of support throughout the project lifecycle.

Diverse Expertise In-House

Agency teams come with a diverse range of expertise in-house. Creatives, business analysts, project managers and skilled developers, agencies offer a comprehensive skill set that can tackle various aspects of your project. 

Proven Track Record

Agencies have a reputation and a proven track record that you can check. By looking at an agency’s portfolio, you can see if they have consistent quality standards and if their previous work aligns with your expectations. This transparency helps you make an informed decision based on their past performance.

Robust Contracts

Contracts with agencies are generally more robust, covering aspects like non-disclosure agreements (NDAs), rates, and legal protections. These contracts provide clarity and security, ensuring that both parties understand their obligations and expectations.

The Drawbacks:

Higher Costs

One of the biggest drawbacks of hiring an agency is the higher cost compared to freelancers. Agencies have overhead expenses and their services come at a premium. However, the added value and reliability they offer often justify the additional expense.

Team Assignment

With an agency, you get the team that the agency provides, and you don’t have the ability to pick and choose individual team members. While this can ensure a well-rounded team, it may limit your ability to select specific experts you might prefer. Though, it’s not uncommon for specific specialists to join an agency team.

Potential Delays in Project Start

Depending on the agency’s existing ongoing projects, there might be a delay in starting your project. Agencies with a high demand for their services may require you to wait until they have the capacity to take on your project.

Specific Expertise Needs

If your project requires highly specific expertise, hiring a freelancer might be easier. Freelancers often specialize in niche areas and can provide the exact skills you need without the broad approach of an agency.

Flexibility in Work Hours

Freelancers may offer greater flexibility in adjusting to your working hours and specific time zones. Agencies operate within their established schedules, which might not always align perfectly with your preferred working times.

All in all

While both agencies and freelancers have their strong sides, agencies offer a more structured and scalable solution for complex projects.

The comprehensive support, project experience, and proven processes provided by agencies often outweigh the higher costs and potential delays in the project delivery.

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