The difference between freelancing and outsourcing: Industries are improving to keep pace with the current dynamic world. Established companies train themselves to build skilled workers, but many companies lack skilled workers. These companies do not have the workforce and other resources. The question is, can outsourcing be the solution?
Things like freelancing and outsourcing come in handy in the mentioned situations. In both cases, the required workforce of a company is hired from outside to get high-quality results keeping the cost low. (difference between freelancing and outsourcing)
Although the terms “freelancing” and “outsourcing” are often used interchangeably, there are differences between the two terms. Although these two things are opposite in terms of money, two things are opposite of the same currency.
Many people think that outsourcing and freelancing are synonymous. So let’s find out in detail about outsourcing, the difference between freelancing and outsourcing, etc.
What is outsourcing?
Outsourcing is the act of hiring someone outside the company to provide a service or make a product. In other words, if a company does not have the required workforce or skills to perform a job, then it is called outsourcing to hire someone who is not an employee of the company. (difference between freelancing and outsourcing)
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In 1979, outsourcing was first considered a business strategy. This concept became a significant component of the business economy in the 1990s. However, outsourcing is not viewed favorably in many countries.
Those who argue against outsourcing argue that outsourcing is reducing local jobs, especially in the manufacturing sector. However, according to those in favor of outsourcing, this has created a free market economy, from which companies can quickly mobilize resources in the required sectors.
An organization hires an outsourcer for outsourcing only when the job is not permanent. The employee does not need to be listed in the organization at the end of the job. Companies hire workers by outsourcing to reduce costs.
What is the difference between freelancing and outsourcing?
Indeed you already have enough idea about what outsourcing is. Let us know in detail about the difference between freelancing and outsourcing. (difference between freelancing and outsourcing)
Theory
The word ‘freelancing’ comes from the words ‘free’ and ‘lance.’ Traditionally, ‘freelancing’ means to work freely or independently. (difference between freelancing and outsourcing)
On the other hand, the word ‘outsourcing’ combines the words ‘out’ and ‘source.’ In other words, ‘outsourcing’ means to bring work from any external source.
Definition
Freelancing means working independently without strict rules. Outsourcing, on the other hand, means hiring a freelancer without hiring.
Relationships
At the end of the job, the freelancer works and receives his payment from an outside source. On the other hand, an outsourced client pays the freelancer at the end of the work and work.
Activities
A freelancer works as an independent worker. A freelancer is not obliged to do any work according to the rules of time constraints. If he can submit the work within the deadline, he can work whenever he wants. At the end of the work, he received his honorarium. If you don’t work again, the freelancer will not get any money. (difference between freelancing and outsourcing)
On the other hand, an outsourced client hires the required workforce from outside his organization without providing permanent employment to the employee in the organization. Thus, outsourced clients can be a bridge between an organization and a freelancer. In addition, many of these organizations provide freelancers for other organizations if needed.
Payment
A freelancer gets paid for his work. In other words, you will get precisely the same amount of money as the payment for the work before the work. A freelancer does not receive any monthly salary. On the other hand, an outsourced client similarly pays a freelancer in exchange for work. In this case, the outsourced client does not pay any regular salary to the freelancer. (difference between freelancing and outsourcing)
Example
Suppose Mr. Akash is a graphic designer who specializes in logo design. Now he is offered a job where he has to make a logo for one of the organizations, for which he will get ৫০ 50. Now he can do the job if he wants and get the money. This is freelancing.
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Suppose again that an organization needs a new logo. In this case, it would be costly for them to hire a separate employee just for logo design. So the company decided to design the logo through a skilled freelancer for a certain amount of money from outside. Here the issue of hiring freelancers from outside the organization is called outsourcing. (difference between freelancing and outsourcing)
Advantage
The benefits of freelancing are:
- You are not obliged to do anything against your will.
- There are no barriers to freelancing, such as working from 9 am to 5 pm or from 10 am to 6 pm. A freelancer can work whenever he wants.
- A freelancer has no boss, and he is his boss.
- In the case of freelancing, the decision of your schedule is the freelancer’s own.
What are the benefits of outsourcing?
- Necessary work can be done with less money and resources.
- Freelancers hired for outsourcing do not have to take any big responsibility, or freelancer has to give any office space.
Difficulty
The disadvantages of freelancing are:
- Whether it’s getting paid for work or getting paid, there are always doubts about freelancing.
- In the case of freelancing, work is not always available. Also, you may not get the kind of work you like to do.
- There is no fixed income for freelancing. Maybe in one month, you earned 1 lakh rupees, again it was seen that you could not earn 10 thousand rupees in the next month. The more work you get and do, the more your income will be.
What are the disadvantages of outsourcing?
- There is no guarantee that the work you need will be done. A freelancer can refuse a job for a good reason.
- In the case of outsourcing, the quality of work may not always be what you expect.
- Outsourcing may take longer than usual to accomplish a task.
In other words, the employee hired for outsourcing is a freelancer. However, again the job he gets is an organization that is provided to him through an outsourcing process.