The web development domain has seen outstanding improvements in the past half a decade, be it with the overall appearance of websites and apps or the security that each of them has.

However, with time and a pandemic forcing a change in the course of action on the corporate industry, there have been major changes in the way companies go about their web and software needs.

Rewind five years back – Custom Software Development Agency made millions of money and encashed on the ever-growing market of websites, software, and applications. However, the situation has changed a lot since then.

In 2024, There are over 118,002 freelance software developers currently employed in the United States. This stat shares light on the fact that corporate entities have shifted their preference towards freelancers rather than software development agencies.

So the question goes on. Are freelancers the better option than agencies, or is it the other way around? Well, if you are stuck in the dilemma of an agency vs freelancer for software development, let’s make it simple for you.

Working Principles of a Software Development Agency

Software development agencies are the time-tested resorts to anything related to web development. Right from the start, such agencies have shouldered the trust and performed exceptionally well with regard to such developments.

The main reason behind this is the experience and expertise that software development agencies bring to the table. These agencies have always been the safer option when it comes to professional services.


Working Principles of a Freelance Software Developer

Software development trends have shifted a lot lately, especially considering the workforce. The dependency on freelancers has been at a high in the last couple of years and this has had a strong influence on the budget and output of these client companies.

In comparison to agencies, freelancers can be a little difficult to trust at first, since there is limited scope to verify the expertise of a freelancer unless you are dealing with someone with profound industry popularity.

Agency vs Freelancer: Your Pick for Software Development

The Level of Expertise

Five-levels-of-expertise : Freelancer vs Software Development Agency

When it comes to the level of expertise, software development agencies could be the right pick, hands-down. These agencies search through talents and recruit the most expert software developers working for them.

So when you assign your development project to these agencies, you can be assured that your task is in safe hands.

The Search for Talent

This could be an extension to the level of expertise factors. Agencies already execute the talent hunt, so all that’s left for you to do is hand out the project and wait for its completion till the deadline.

On the other hand, working with freelancers would mean that you will have to search for the perfect match for your project requirement. This can be a lengthy and time-consuming process.

And not to mention, you may also have to go through the trial-and-error method in this selection process.

Work Flexibility

Large software development companies work on their set of rules and principles, which you might have to abide by. For example, if a software company offers just one round of free revision in its service package, you will have to be satisfied with the output. Any extra revisions or improvements in the product might attract extra expenses.

On the other hand, working with a freelancer can give you the maximum level of work flexibility. The example here would be that a freelancer is always open to discussion for further improvements, revisions without any extra expenses.

Read More : Offshore Software Development: Detailed Guide

Project Budget

The most important aspect to consider in this agency vs freelancer web developer is the budget and this is often the decisive factor in choosing either.

A software development agency, as much as the expertise they pack, is often the more expensive option. The reason behind this is the cost of production that these agencies bear, including office expenses and employee and resources costs.

On the other hand, freelancers don’t have such a huge cost of production involved. Since freelancers are individuals, there is no capital or production cost involved. As a result, freelance software developers can offer the same level of expertise to a project as an agency without skyrocketing the price.

Project Reliability

More than the budget, a majority of the companies looking to develop software focus on the reliability of the agency/freelancer handling the project. Agencies are reliable, especially considering the fact that they have a systematic approach to the entire work ecosystem.

Also Read: Cost To Build On-Demand App

On the other hand, freelancers are generally considered less reliable compared to agencies and there are multiple reasons behind that. In most instances, such individuals don’t have a systematic approach to handling a project.

Moreover, since they are just a single head that might handle multiple projects, the focus is a lot less when you filter out singular projects.

Reasons Why You Should Choose Either

So, if you are looking to roll out a software development project but could not make a decision as to which of the two, agency and freelancer, could be a more value-for-money and reliable option, check out this concise pros and cons.

Software Development Agency


  • Reliable with the development
  • Expertise guaranteed in most cases
  • Easy to find
  • Transparent process


  • Not very flexible
  • Might dent your budget

Freelance Software Developer


  • Affordable
  • Very flexible with inputs, and revisions
  • Easy to work with


  • Hard to find an expert
  • Trial-and-error; you might not get it right at first
  • Not as reliable as an agency with project completion and delivery

Also Read: Top 32 Software Ideas for Startups In 2024

So Which One Is Right for You

The decision of choosing the one among a software development agency and freelancer isn’t based on a thumb rule. And while an agency might seem like a feasible option, you should measure the pros and cons before assigning the project to either one.

For small-scale businesses, starting off with a freelance software developer might be a more feasible option as they can fit your tight budget without compromising on the quality.

However, on the other hand, if you are on the board of a big corporate entity looking to launch a new software product, pitching in the idea of going with a renowned agency to the other members makes a lot more sense.

Harikrishna Kundariya

CEO, eSparkBiz

Harikrishna Kundariya, a marketer, developer, IoT, chatbot and blockchain savvy, designer, co-founder, Director of eSparkBiz @Software Development Company where you can Hire Software Developers. His 12+ experience enables him to provide digital solutions to new start-ups based on Web app development.