Software development agency vs. software consultancy vs. freelance developers: What to choose?

Software development agency vs. software consultancy vs. freelance developers: What to choose?

20.11.2021 - 2min read - by Minnie Yeung

It perturbs every business when you have to decide how to implement a project with software development skills. Should you hire a software development agency, software consultancy, freelance developers, or employ an in-house team? Which one should you pick to bring the project to life? It is a significant investment, after all, so choosing the right one is crucial.

Below we have compared the different options to hopefully give you a better idea of which way your project should go for.

Software Development Agency

A Software development agency is a team of professionals offering full-scale outsourcing services for various projects. The IT outsourcing industry is estimated to have a revenue of 351 billion U.S. dollars in 2021. A software development agency turns the idea into reality. They put all these elements together for delivering various software projects. Their software development team consists of software architects, designers, developers for completing the projects they undertake. They have diverse expertise and can build flexible solutions that suit your project requirements.


1. Work well for projects of all sizes. They handle any size of projects, whether it’s a start-up or big company.
2. Service packages. They cover consultation, analysis, evaluation, and many more that support the businesses.
3. They have a collective skill set. Each member of the team plays a decisive role to complete the project. It entails good outturn quality.
4. Up-to-date technologies. Software development agencies keep them updated with the latest trends & technologies and employ them for the successful completion of projects. Thus, a client can get the best result.


1. Claims might not be evidenced. Although some software development agencies claim that they can undertake any kind of project, that is hardly the reality. So, businesses should focus on finding one that can meet their specific needs.
2. Expensive. Software development agencies often work with clients intensively for a shorter period, which causes them to have to take a relatively high price.
3. You involve and learn less. You rarely learn anything from the project because you do not really involve the process in between.

Software Consultancy

Hiring a software consultancy puts a pool of rich talent professionals in your project. Such groups contain professionals with diverse skills and backgrounds. So, if your project needs a specific language, there will be someone in the team to put you through.

Software consultancies can help throughout all stages of a project. They have a wide range of experience and can skyrocket project success. Given a deadline for completion they can introduce a hoard of resources for a project. You have only to check reports; approve or ask for further adjustments and wait for the next part.

Regardless of your software skill and experience, a time might come when those might not be enough for a project. Getting professional software consultancies can be a game-changing move.

Maybe you are aiming to develop a customized software product, dedicated application, or SaaS product. Hiring a software consultancy can add new dimensions and drastically improve the outturn quality. Software consultancies can do many things. They formulate strategy, structure design, and ensure stability for the successful completion of projects. Sometimes, they resolve issues with system quality and update that cause trouble.

The best thing about hiring a software consultancyis you can do it considering the cost and timeline.


1. Software consultancies offer a variety of project-based services. They can also provide estimates on the cost and time involvement of a project for better understanding.
2. Top talents. They have a large pool of talented developers, designers, project managers, business analysts, and quality assurance specialists. These people have specialized skills and expertise and can assist in specific and intricate projects.
3. Customized solutions. Software consultancies often specialize in certain technologies and yield a huge benefit.
4. They give an objective view of your project. It adds value and reduces the risk of committing mistakes.
5. Reduce operating costs. By hiring a software consultancy, you do not need an internal team that can save you a substantial amount.
6. Bindings & accountability. Contract signed with a software consultancy makes them bound to perform and deliver. They are accountable for things going wrong.
7. Flexible arrangements. Software consultancies sometimes complete projects on fix-bid arrangements. You can enter short-term or long-term engagements.


1. Not always 24/7 here for you. Software consultancies work for multiple clients. They may not be able to answer you or fix the problems right away.
2. Billing practices. Make sure you pay attention to their bill practices. Are they on weekly or monthly or hourly rates?
3. Overstating experience: Also, make sure you do not pay for seniors while a junior works on your project.

Freelance IT Developers

Freelance developers are self-employed individuals. Hiring them is getting popular these days for flexibility. You can hire a freelance developer for a particular task.


1. Flexibility. Freelance developers can work at flexible times and anywhere. Their main objective is to complete the task at hand. As such, they can work at odd hours even.
2. Speedy delivery. Freelances want to finish a project soon and start another one. As such, they give fast delivery.
3. Affordable. You only hire freelancers instead of an expert team. It involves less cost.
4. A huge pool of options. You can make a large choice from freelance websites.


1. Not always available. The freelancers you prefer may be unavailable when you need them. They may be engaged in some projects. So, you have either to wait or find an alternative.
2. Data privacy at risk. You may lose your confidentiality because not all the freelancers are willing to sign an NDA.
3. Lack of support. As freelancers are hired for a specific job only, there may be no maintenance and follow-up after.
4. Uncertain quality. Not every freelancer can deliver a high quality of work or the idea of your work.
5. Ricky. They may disappear.

No matter which option you choose, it is a significant investment, so it is wise to do a quick needs analysis before you start. Hope this will help you to choose sensibly.