Both in-house and freelance developers create and maintain software. But the right choice depends on your project type, budget, and long-term goals. Here's everything you need to know to decide.
What is In-House Development?
A company employs and houses a team of programmers, analysts, and technicians to create software using its own capacities. More control over the development process, but higher costs and overhead.
What is Freelance Development?
You hire one or several independent contractors to work on your project. Much cheaper than sustaining an in-house team, but risks are higher without proper vetting.
When to Hire In-House Developers
1 Startups for Sale
If you're building a prospective idea that interests bigger companies, an in-house team gets acquired along with your tech. Apple buying your team along with the IP is more valuable than scattered freelancers.
2 Software Development Companies
If your company lives on developing serious software—security solutions, antivirus programs, accounting solutions—a well-coordinated team run by a CTO, each member knowing their duties, is better than freelancers.
3 Companies with Consistent Workloads
If your business operates with regular workloads unlikely to decrease, it makes more sense to hire a dedicated team of in-house developers.
4 Stable Revenue Companies
If your business generates stable revenues and your burn rate doesn't shorten your runway, consider hiring in-house. Treat it as an investment into safer future growth.
5 B2G Companies
If you work as a contractor for the government, confidentiality is critical. Working with in-house developers is safer regarding security and privacy. Same applies to big corporations.
In-House Strengths
In-House Weaknesses
When to Hire Freelance Developers
1 Remote Companies
If you work in a distant place with little access to qualified labor force, hiring freelance developers might be the perfect solution.
2 Overheated Markets
If your location has developers with ridiculously high hourly rates being snapped up like hotcakes, outsource to freelancers from areas with lower rates.
3 Small But Growing Companies
A website is vital for any business. Hiring in-house developers only to create and maintain a landing page is unreasonable—find a freelancer instead.
4 Irregular Workloads
If you work project to project, keeping an in-house team costs a lot. Outsourcing for freelancers for each particular project is more cost-effective.
5 Midterm Projects
Projects lasting up to one year benefit significantly from freelancers—duration is too short for hiring and onboarding an in-house team.
6 Open-Source E-Commerce
Open-source e-commerce platforms can be adjusted to your needs. Hiring a freelance developer for setup and maintenance is a smart move.
Freelance Strengths
Freelance Weaknesses
Comparative Analysis
| Factor | In-House | Freelance |
|---|---|---|
| Cost | Higher (salaries, benefits, overhead) | Lower (pay per project/hour) |
| Security | Higher (NDAs, corporate control) | Lower (harder to enforce) |
| Flexibility | Lower (fixed team, fixed skills) | Higher (hire any skill anytime) |
| Quality Consistency | Higher (team knows standards) | Varies (depends on vetting) |
| Best For | Long-term, core products | Short-term, specialized projects |
| Scaling | Slow (recruiting, onboarding) | Fast (hire in days, not months) |
Key Insight
Freelance advantages relate to flexibility and short-term efficiency. In-house development is more reliable, safe, consistent in quality, and suitable for long-term projects. The best choice depends on your specific situation.
Frequently Asked Questions
Is freelance development cheaper than in-house?
Yes, freelance development is typically cheaper. Even with the highest hourly rates of approximately $70 in the United States, freelance development is more affordable than hiring in-house teams when you factor in salaries, benefits, taxes, insurance, office space, and equipment. Rates are even lower when recruiting from Eastern Europe or other regions.
When should I hire in-house instead of freelancers?
Hire in-house when you're building a startup for acquisition, running a software development company as your core business, have consistent workloads that won't decrease, have stable revenues, or work with government contracts requiring strict confidentiality. In-house is better for long-term projects where team cohesion and security matter most.
How do vetted platforms combine the best of both models?
Vetted platforms test developers for professional, communicative, and English skills before they work with customers. This eliminates the "trial and error" weakness of freelancing while maintaining cost-efficiency and flexibility. Many vetted freelancers work full-time with income dependent on performance, providing motivation and competence rivaling in-house teams.
The Bottom Line
There's no universal answer. Freelance developers excel at flexibility, cost-efficiency, and short-term projects. In-house teams provide reliability, security, and consistency for long-term development.
But vetted platforms offer a third way: the flexibility and cost-efficiency of freelancers with the reliability and quality of in-house teams. Every developer is tested for skills, communication, and motivation before working with clients.
If you're looking for freelance developers but feel unsure about how to do it right, try hiring through a vetted platform. You get the best of both worlds.
Get the Best of Both Worlds
Boundev vets every developer for skills, communication, and reliability. Freelancer flexibility with in-house quality—without the overhead.
Hire Vetted Developers