Freelancer, digital agency, in-house team, or bespoke software house?

Freelancer, digital agency, in-house team, or bespoke software house?

This is a controversial topic, primarily because it involves various beliefs regarding performance and delivery across companies throughout Brazil. And it’s crucial to emphasize that the insights shared in this article are based on our experience as a bespoke software house.

What we’re presenting here does not represent the market in its entirety. As we already know, every rule has exceptions, and sometimes, excellent work is delivered.

So, the focus of this subject is simple:

  • A freelancer is suitable for addressing specific demands;
  • Digital agencies are accustomed to developing software solutions with low complexity (websites, simple apps, e-commerce platforms, and blogs);
  • The need for an in-house development team depends on the scale of the software demand;
  • Software houses are pricier but deliver highly complex projects requiring over a thousand hours of development.

Now, you might be wondering: How do I know which option is best for my needs? Well, this will depend on the size of your project.

Software Development and Construction Industry

To make it easier to understand, let’s use the following analogy: you need to build a skyscraper, a two-bedroom house, or renovate the bathroom in your home.

Would you hire a company that’s only used to building houses to erect a 10-story skyscraper? Obviously, the answer is no.

And what about that bricklayer who does the best job in the world? Would you hire them to construct the skyscraper? Clearly, their individual skill wouldn’t be sufficient for such a venture.

In other words, we also use this type of analysis in the construction of digital products.

Now, if your need is for a corporate website or a blog, hire an agency. Because a freelance developer isn’t a designer, thus, they’re not equipped to handle the visual aspects of the site or blog.

Moreover, a software house will likely charge a very high fee since they have a more robust structure, or sometimes, they may not even offer this service.

Each service has its own way of contracting

For instance, if you need to install a plugin on your website or make a small adjustment to your app, a freelancer will probably be able to handle that for you at a great price.

The most important thing is to ensure you clearly explain everything and have a generous delivery deadline that aligns with your expectations.

Now, let’s consider a more complex scenario, like constructing a 10-story building, with 4 apartments per floor, each apartment having 3 bedrooms, a kitchen, a living room, and a balcony, etc.

Based on what we’ve learned here, it’s already possible to conclude that, concerning software – in our analogy with a construction company – the service would be equivalent to a software house or an in-house development team.

In summary:

Freelancers

They’re great for small adjustments and services requiring speed, as there’s no bureaucracy in hiring. However, caution is needed not to assign overly large scopes of work.

Nevertheless, since they serve multiple clients, you may end up frustrated with delivery dates, especially if you’re not well-versed in software management.

Agencies

Typically, they excel in integrating your digital marketing plan with less complex development solutions. Think of corporate websites or even apps that also function as corporate websites.

Don’t push for sophisticated functionalities, as agencies with extensive development structures are rare and sometimes extremely costly.

In-house Team

It’s beneficial when you have high software demand and a good grasp of development management.

If it’s your first time managing the creation process of a digital product, even though it may be more expensive, we still recommend seeking out a Software Factory like Ubistart.com, as your delivery and learning curve will be much faster.

Conclusion

In conclusion, a Software Factory is excellent for large projects, systems, and apps with many functionalities that will clearly generate revenue for the company.

This is because these companies typically charge over 150,000 for digital product development, while freelancers charge below 10,000, and an agency will charge, on average, between 10,000 to 50,000 reais for the service.

We hope this helps! If you have any doubts about costs, you can read the article How Much Does Custom Software Cost or contact us for more details by clicking here!

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