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Mobile App Development Using Freelancers: 6 Hidden Costs

6 Hidden Costs Of Using Freelancers For Mobile App Development

As a business owner or entrepreneur, you know that building your own mobile app can be a powerful tool to expand your business or enhance your customers' experience. But let's face it, the world of mobile app development can be a minefield of complexities, obstacles, and roadblocks that can make even the most seasoned entrepreneur feel overwhelmed and helpless.

It's easy to feel lost in the maze of technical jargon and confusing terminology, so deciding to work with a freelancer or an agency can make all the difference in the success of your project.

In the world of mobile application development, using freelancers has become popular. It's not hard to see why - freelancers offer flexibility, access to global talent, and the promise of cost savings. Freelancing marketplace, Upwork, found that 70% of companies surveyed were using freelancers rather than expanding their own staff.

However, there are hidden costs that can have a significant impact on your business. The potential drawbacks of working with freelancers are often overlooked, but they can be the difference between success and failure in your app development project.

We will explore these hidden costs and why it's crucial to carefully consider all the factors before deciding to work with freelancers. Cost, while often the main motivator, should not be the only factor to consider when making the decision to work with a freelancer or an agency. In the article we will explore other essential factors you should also be considering.

In fact, anecdotal evidence suggests that businesses have experienced major setbacks in the past when working with freelancers. One business owner shared their experience of working with a freelancer from a different timezone, "I found myself waking up in the middle of the night to ensure that my freelancer was on track with the project. It was a huge burden on my personal life and added significant stress to the project.”

In this article, we will examine the hidden costs that come with hiring a global freelance workforce, including the impact on quality, communication, project management and scalability of your project. We will also provide valuable tips on how to minimize these risks and help you decide whether an agency is the best fit for your mobile app development project. By the end of this article, you will be equipped with the knowledge and resources necessary to make an informed decision for your business.

The Hidden Costs of Hiring a Freelancer

When it comes to creating a mobile app, you may consider the option of hiring a freelancer to do the job. Sure, it may seem cost-effective, but there are hidden costs that can jeopardize your project's success.

Let’s dive into some of the risks associated with working with freelancers that have come up from client experiences before reflecting on why an agency approach is often easier and even cheaper.

1. Communication barriers

The first risk of working with freelancers is communication barriers. The benefit of tapping into a global pool of skills is also a potential risk. They may be located in different time zones or have limited fluency, making it challenging to communicate effectively. Or even worse, make miscommunication a big risk.

2. Burden of project management

Even when communicating in the same language, miscommunication can still arise when discussing deliverables. All of this comes down to effective project management and for you to dedicate time as the project manager for this project.

To deliver the app development project successfully when working with a freelancer you will have to be more hands on as the project manager. This takes time away from your regular job and can be stressful.

Vincent de Jonghe Deputy CTO Pentalog Freelancers writes about an experience of an education technology start-up who hired IT freelancers to deliver a project. He recalls “A day’s wait for a late delivery gradually turns into weeks, and then months... As well as being delayed, the quality of the deliverables starts to go down, with specs half-ignored or functionality that disappears from one day to the next.”. This is the story of a project that slowly went from bad to worse. In hindsight accountability, communication and project management were diagnosed as the causes of the mess-up.

3. Lack of Accountability

Another risk is the potential for a lack of accountability. Unlike full-time employees, freelancers are less likely to be invested in the success of your project. To help manage this you will need to set clear goals and deadlines and dedicate your time to project management.

4. Quality of Work

The quality of work produced by freelancers can vary widely. Even the same brief can lead to wildly different outputs. To mitigate this risk, vet freelancers before hiring them. Review their portfolio, check references, and conduct skills assessments. Provide clear instructions and feedback to ensure that the work meets your expectations. You will need to complete this process for every freelancer you hire. If you need to build a team of freelancers to cover a range of skills do consider the upfront time required before even starting.

5. Dependence on a single freelancer limits your available skill set and ability to scale

One of the biggest risks of relying on a single freelancer is that they might not have the scale and flexibility you need to get the job done. You might find that they're not available when you need them, or that they don't have the bandwidth to handle your project. Plus, if they suddenly drop off the radar, you have an unfinished project to pick up.

One person is also always going to have a specialised skill set that they can deliver most efficiently. With mobile app development a range of skills are required to successfully and quickly deliver the project. Is it a one-person job, realistically not. Could it be done, potentially but at the expense of time and quality. That's why you will need to consider hiring multiple freelancers, this will give you flexibility and a greater depth of skills.

6. Security Risks

Working with freelancers can pose security risks, especially if they have access to sensitive information or intellectual property. Use secure communication and file-sharing tools and establish clear security protocols. Have a signed agreement in place that outlines the freelancer's responsibility to protect your confidential information. Again this would need to be in place for every freelancer.

In conclusion, it's essential to weigh the pros and cons carefully and consider all factors that can impact your project's outcome. Freelancers can first appear as a cheap option with a low hourly cost but many of the hidden costs can slowly add up over the course of a project.

XYREZ Agency Illustration
Agency Illustration

Benefits of Using an Agency

When it comes to mobile app development, using an agency offers a range of benefits that can make it the preferred option for many businesses. But let's take a closer look at some of the main advantages of using an agency for mobile app development.

1. Comparing the cost of app development

One concern many businesses have when considering an agency for mobile app development is the cost. While it's true that agencies typically charge more per hour than freelancers, this can hide the true total cost.

Hiring a freelancer may seem like a cost-effective solution, but there are hidden expenses that may not be immediately apparent. Rushing to complete a project in order to maximize hourly pay can lead to low quality code, which results in what is known as "technical debt". This article covers five different types of technical debt to look out for.

Technical debt may not be apparent to clients without technical knowledge, but it can have significant costs down the line. Refactoring, or rewriting, the code to resolve technical debt can be time-consuming and expensive for future developers tasked with maintaining or updating the codebase.

Let’s quickly compare freelancer and agency app development. If you hired a freelancer at a rate of $100 per hour as they have a skillset to cover the entire scope of development. As we have seen, often this is not going to be the case. If the project takes 1,000 hours to complete, the total cost would be $100,000. However, if you use an agency, they might charge $130 per hour, but the project might only take 700 hours to complete as there are multiple experienced members of the team working together. In this example, the total cost would be $91,000 and so work out cheaper than the freelancer.

Agencies are more likely to provide fixed project costs, so you know exactly what you're getting for your money. This means that if the project runs over budget, the agency is responsible for covering the additional costs, rather than you. If you are relying on freelancers the costs can really start to pile up if deadlines get missed.

2. The benefit of working with a contract

When it comes to hiring developers, it's important to have clear expectations and a safety net in place. This is where using an agency can come in handy. When you work with an agency, both parties use a contract that clearly outlines what is expected. Having a contract in place gives both parties legal insurance, which can help you sleep better at night.

On the other hand, hiring a freelancer can be a bit of a gamble. While there are certainly some talented writers on the platform, the quality of work can be up in the air and you are often relying on the freelancer platform to arbitrate.

3. Making time and resource management easier during the app development process

Effective time and resource management is essential for the success of any mobile app development project. As the saying goes, time is money, and managing a project well can really make a difference. But let's face it, you may not have the time or want to manage the hassle of hours of project management while juggling your other existing workload..

That's where an agency can help out. When you hire an agency for your app development, you don't just get their expertise and experience, but also someone to help you manage the project. With pre-existing and established workflows and processes, an experienced project manager can ensure that your app is completed on time and within budget. They can work with you to understand your goals, objectives, and requirements, and make sure that the development team delivers to your expectations.

On the other hand, often the experience of working with freelancers, especially if you have to assemble a team to cover different skill sets, is that you will take on the role and responsibilities of project management. This can be a burden, especially if you're not experienced in managing mobile app development projects. You may have to spend countless hours coordinating with the freelancer, ensuring that they deliver the project on time, and managing communication with the developer. This can not only take up your valuable time but also increase the chances of mistakes.

It's not exciting, but the truth is that effective project management is essential for the success of any mobile app development project. By working with an agency, you can entrust the project management, saving you valuable time and ensuring the project is completed on time and within budget.

4. Agencies help tap into a wide range of experience

Agencies also have a wealth of experience to draw upon, plus the collective knowledge of the team. They have usually worked on a variety of projects with different requirements that then directly benefits you, helping to provide invaluable advice and guidance on all aspects of the app development process, from the moment you start on initial design to the final product launch.

5. The ability to quickly scale the project

Unlike an individual freelancer, agencies have the resources to scale up or down as needed. Need something done in a rush ensuring that the project is completed on time, no matter the size. If your project requires additional resources or expertise, an agency can bring in additional team members quickly to make sure your project is completed on time. The same goes for scaling down the project if you run into budget constraints or changing business requirements, an agency can be flexible enough to make the necessary changes.

6. Team-Based Approach

One of the biggest advantages of using an agency is the team-based approach you get. Unlike freelancers who often work alone, agencies typically have a team of specialists who work together to provide a comprehensive solution for your mobile app development needs. This team usually includes project managers, designers, developers, and quality assurance specialists each who bring their respective experience and knowledge.

With an agency you get a project manager who acts as a main point of contact, overseeing the team's work and ensuring that the project is completed on time and within budget. The designer is responsible for creating the app's user interface and experience, while the developer is responsible for the app's functionality. Quality assurance specialists test the app for any bugs or issues before launch. With a team working together, you get an holistic and experienced approach so that you can be confident that all aspects of your app development project will be covered.

7. Quality Assurance and Support

When you hire an agency for your mobile app development needs, you can rest assured that your project will be held to the highest standards of quality assurance. Most agencies have established protocols and processes for testing and debugging mobile apps to ensure they meet the requirements of the client. In addition, they often provide ongoing support to fix any issues that may arise after launch.


FreelancerAgency
CostCost is low per hour but can hide hidden costs that add up (technical debt, project management)Higher per hour, however, overall can be cheaper option
ContactRare to have a formal contractContract helps setting objectives and provides security
Project managementYou are required to project manageAgency will project manage saving you time and stress
ExperienceWide range, can be experienced in one specialityCollective experience of a team
Scale and flexibilityLittle opportunity to scale, requires you to add headcountCan scale up or down across a project
Work
approach
Individual limits time, scale, and skillTeam-based approach provides scale and wider skills
Quality assuranceLimited processes in place and no team to assure qualityQuality assurance specialists and processes, plus a team to check work
Table comparing Freelancer vs. Agency

Conclusion

Although hiring a freelancer may seem like a cost-effective solution for your mobile app development needs, the benefits of working with an agency are undeniable. An agency can offer you a team of experts that can guarantee high-quality results, timely delivery, and support throughout the lifecycle of your mobile app. You will also gain the benefit of working to a contract which helps to set out clear objectives and provides you with added security and trust.

Moreover, an agency's scale and flexibility can help cater to your unique mobile app development needs. As your project grows, an agency can easily scale up its resources to accommodate any additional requirements. The time and resource management that comes with working with an agency is also an added bonus that can save you both time and money.

Finally, quality assurance and support are crucial components of any successful mobile app development project. An agency can provide quality assurance throughout the development process, ensuring that your app is of the highest quality. They can also continue to offer support and maintenance throughout the lifecycle of your app, ensuring that it continues to meet your evolving needs. If you want to do a deeper dive on the development process, we wrote a quick 5 minutes read about it here.

When choosing an agency, it's essential to do your research and find one that has a proven track record of success in mobile app development and fits your budget. It's vital to look for an agency with experience in your industry, as well as a portfolio of successful projects that can serve as a testament to their capabilities. With an agency's wide experience and team-based approach, you can be confident that your mobile app development needs are in good hands.

In conclusion, working with an agency for your mobile app development needs can ultimately save you time and money while ensuring high-quality results. The benefits of an agency approach such as time and resource management, quality assurance and support, cost comparison, scale and flexibility, wide experience, and team-based approach make it a smarter choice in the long run. And if you're looking for an agency that truly understands the needs of small businesses and upcoming entrepreneurs, look no further than XYREZ.

XYREZ is dedicated to helping small businesses and entrepreneurs succeed. We are a team of experienced professionals and a commitment to excellence, XYREZ is your perfect partner for developing mobile applications. So if you're ready to take your business to the next level, head over to https://xyrez.com/ today and see how XYREZ can help you succeed!

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