Freelancing and outsourcing are linked with each other but not both terms are the same because there are many differences between freelancing and outsourcing. The freelancing industry has been growing rapidly in recent years. According to a report by the Freelancer Union, there are 57.3 million freelancers in the United States alone. This represents a 3.7 million increase from the previous year.
With the rise of the gig economy, more and more people are looking for ways to earn money by working online. This has led to a lot of confusion about the difference between freelancing and outsourcing.
In simple terms, freelancing is a form of self-employment where you provide services to clients on a project basis. On the other hand, outsourcing is when a company hires another company or individual to provide services that could be done internally.
Now that we’ve cleared that up, let’s take a closer look at the key differences between freelancing and outsourcing.
There Are Differences Between Freelancing and Outsourcing
| Freelancing | Vs | Outsourcing |
|---|---|---|
| Freelancing is a type of work where the individual is self-employed and does not have any employees working under them. Freelancers are often hired directly by clients or companies and are paid per project or piece of work completed and hourly. For example, a freelance writer might be hired to write an article or more than one article for a website. | What is Freelancing? & and what is outsourcing? | Outsourcing involves hiring a company or third person to handle a specific project or task. When a company outsources, they are contracting with another company to provide a service or product. This is often done to save money, but it can also be done to get access to a specialized skill set that the company does not have internally. For example, a company might outsource its customer service to a call center in another country. Outsourcers work as freelancers or as employees on a project basis or on a salary basis. Outsourcing is becoming increasingly popular among small businesses and freelancers who have more workloads so they don’t want to hire the person permanently but they start to outsource their projects by keeping some profits and clients but without compromising quality. |
| Freelancing is done by people who have expertise in a particular area and are looking for short-term or long-term work. Freelance jobs can range anywhere from small projects (such as writing blog posts) to full-time employment (such as graphic design). | Done by? | Outsourcing is also done by people who are experts in their particular fields. Outsourced jobs mainly are small jobs. |
| In freelancing, you have full control over how much time you spend on each project. You decide what hours you want to work and when you want to take breaks. | Time | In outsourcing, you don’t have full control over the amount of time spent on each project. You may get assigned a certain number of hours per week or month to complete a task. |
| When you freelance, you set your own rates. You determine how much money you charge for your services. | Rates | However, when you are a outsource person, you are paid based on the rate agreed upon by both parties. You may not receive the same pay as if you had taken longer to complete the job. |
| In freelancing, you are responsible for everything related to your projects. You are accountable for everything you do and make sure you meet deadlines. | Responsibility | In outsourcing, the outsourcer is responsible for completing tasks and meeting deadlines. |
| You have full control over your projects when you freelance. You choose what type of project you want to work on and when you want to start working on them. | Control | Outsource people who are hired by freelancers or companies to do work for them, they also have control over their schedules and interests to work on different projects. |
| Communication is extremely important in freelancing. You need to communicate clearly with clients about what you expect from them. You should also keep them updated on the progress of your projects. | Communication | However, communication is often lacking in outsourcing. If you are not an expert at communicating so still you can win projects but getting the potential client’s communication is required. |
| When you freelance, you decide what type of projects you want to accept. | Able to decide | In outsourcing, you also have the option to decide on the projects to work on. Even some companies give their employees a list of projects they would like completed. |
| Freelancers’ income comes directly from the clients and the profit ratio is higher in freelancing. | Profit | In outsourcing, incomes come from the third person or companies but their profit ratio is less than freelancers. |
Advantages of Freelancing
There are many advantages to freelancing, including the ability to work from anywhere, the freedom to choose your own projects and hours, and the potential to earn a higher income. Freelancing can also help you to build a strong portfolio of work and to gain valuable experience in your field. If you want to know more about the advantages and disadvantages of freelancing then read this article.
Advantages of Outsourcing
There are many advantages of working as an Outsourcer which makes it a great career choice. One of the main advantages is the flexibility it offers in terms of working hours and location. As an Outsourcer, you can often work from home or set your own hours, which can be very beneficial if you have other commitments. Another advantage is the potential to earn good money by working smartly. In addition, you will definitely get to meet many people, increased efficiency, and have the opportunity to gain experience.
Conclusion: Differences between Freelancing and Outsourcing
Now you know the differences between freelancing and outsourcing that should be considered to clear the confusion and especially before choosing which option is right for you. When deciding whether to freelance or outsource, you should consider the type of work you want to do, the amount of time you have to dedicate to the projects, and the amount you want to make, your marketing and communication skills.
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