The world around us is changing quickly and while some decades ago in-house hiring was the most common option, today a lot of businesses prefer to outsource (especially when it comes to IT services). For many companies, regardless of their size, it is simply not feasible to expand their staff with newcomers for temporary projects. Thanks to diverse business models, it is not a problem to find excellent developers who will take responsibility for your project or its part. And there won’t be any need to sign long-term contracts with them.
But here comes the first dilemma: to hire freelancers or to establish cooperation with a professional software development agency. That’s exactly the question that we are going to talk about in this article. We will closely consider one of the most popular freelancing platforms – Upwork and discuss its pluses and minuses. Based on the provided facts you will be able to decide on whether this solution will work for you or you need to look for an alternative to Upwork.
Overview: Upwork vs Traditional agencies
When companies want to work with freelancers, Upwork often becomes their choice. And it is quite explicable why. It takes its roots more than two decades ago and since then it has been gradually revolutionizing the way people work. When the platform was launched, the freelancing model didn’t have the same popularity that we can observe now.
Today the freelancing industry is thriving and the latest figures brightly demonstrate this.
Freelance Forward 2023
As for Upwork, it unites 18 million skilled specialists offering their help to businesses from around 180 countries. Over 5 million businesses have already used the platform and empowered their projects with external talents.
But to understand whether you should search for a better Upwork alternative, you should get some details about this platform.
Let’s have a closer look at how Upwork hiring works. What do you need to do?
- Sign up on the platform and create a company account.
- Write a job post, indicate financial terms, and post a job.
- Search for talents on your own and review candidates interested in your position.
- Interview candidates.
- Hire the best expert(s).
In this model, Upwork acts as a bridge between you and freelancers. It offers you access to a talent pool, as well as the required infrastructure for establishing contacts with specialists and paying them.
Nevertheless, all the hiring decisions will be made only by you. Upwork doesn’t provide any assistance in this case. Moreover, the platform even can’t offer any guarantees regarding the quality of the work done.
When you hire a freelancer, it will be only your responsibility to agree on the terms of your cooperation, on the deadlines, communication channels, etc. If something goes wrong in this process, there won’t be anyone else who can bear the liability.
If you want to be more protected and know that a service provider will be responsible for the final results, you should consider other hiring options. And in this case, it could be a reliable software development agency like UMIND.
Such companies also provide you with access to a rich talent pool. But in this case, that’s already their task to choose specialists with high qualifications, test their skills, and solve various organizational questions.
When you work with an agency, the hiring process usually will look the following way:
- You need to contact a software development company and share your requirements for a specialist (or a team) that you are looking for.
- The company will offer you 3-5 candidates for each position who have the most appropriate skills for your project.
- You can interview the candidates and make up your mind.
- The company will handle all onboarding tasks and the chosen specialists will start their work.
Somebody may say that in this case, you have less flexibility. Nevertheless, it is not so. Such companies today offer various engagement models with different financial terms.
That’s why it won’t be a problem to find an option that will satisfy your needs.
Upwork pros and cons
To stay objective, it’s necessary to analyze both the advantages and disadvantages of hiring via Upwork from the perspective of businesses.
Benefits of Upwork
- Access to a rich talent pool that unites specialists from all over the world;
- More attractive rates in comparison to what agencies offer;
- Easiness of search and high speed of hiring;
- Possibility to find developers and other professionals practically with any niche expertise that you may need;
- Huge flexibility and lack of bureaucracy.
Pitfalls of Upwork
- Concerns about the quality of the work done;
- Security and trust concerns;
- Limited support and protection for disputes from the side of the platform;
- Possible issues with communication;
- Low engagement of developers in your project;
- Limited control over the process of your project realization;
- Limited possibilities in establishing long-term cooperation (freelancers usually work on a project basis).
Pros and cons of working with a
software development company
If the list of potential drawbacks of a freelancing platform makes you think about a new alternative to Upwork, you should consider establishing cooperation with a software development agency. To make the right decision, it will be sensible to analyze both the advantages and disadvantages of this approach. To facilitate this task for you, we offer to take UMIND as an example of a company that can become an Upwork competitor when it comes to hiring.
Pros of software development agencies
- Flexible engagement models tailored to your needs;
- Clear business processes;
- High-quality support and dedicated account management;
- Established reputation and reliability;
- Candidates whose skills perfectly meet your requirements;
- Well-established communication channels;
- Possibility of building long-term cooperation.
Cons of software development traditional agencies
- Higher costs and fees in comparison with freelancers;
- Dependency on agency availability and resources;
- Often more time-consuming hiring in comparison with Upwork.
Why Upwork is getting worse: Real reviews
When you are planning to start working with a vendor, it is always a good idea to read reviews written by its clients. The same advice is relevant when you want to start hiring freelancers on Upwork. You should know what people who have already used this platform think and what experiences they had.
While preparing this article, we’ve analyzed dozens of reviews on TrustRadius, and here are a couple of those that are worth your attention.
For example, Lena Mannerfelt Holm, the Art Director at Oceanlogo, wrote:
“We were unfortunately deceived by the freelancer who did absolutely no work and had made us pay in advance. We naturally had the Upwork Customer service involved, but we got no help whatsoever in the dispute, even though complete evidence was presented of the fraud. In my opinion, it is very sad that Upwork permit scams on their site. They also removed the review I wrote about the freelancer. Please be careful everyone…”
Joshua Groves, the Director at MM Acquisitions LLC, had a quite controversial experience. He highlighted that the platform is easy to use and offers a huge talent selection. Nevertheless, he also defined a row of alarming points:
“Biggest issue: In my experience, about 1/3rd of Upwork freelancers are running some sort of hustle where they overbill and under-deliver.
Second biggest issue: In my experience, most of the Upwork freelancer’s English is pretty bad.
Third biggest issue: In my experience, a lot of the Upwork freelancers come from cultures whose expectations of quality work do not match those of my country.”
The reviews and general Upwork’s ranking (1.6 stars out of 5) on Trustpilot also look quite worrying. Some users indicate that today you can find a lot of scammers on the platform.
That’s what a user from the Netherlands with the nickname Kai-mimi M wrote:
“The freelance site Upwork.com is a joke; it’s absolutely full of scammers. It seems that anyone from India, Pakistan, or other places with just a device can call themselves a full-stack developer. They promise you everything, but in the end, they are at most, at best, high school graduates who happen to have a computer. Do NOT, I repeat, let yourself be scammed like I was for thousands of US dollars. Contacting Upwork is not possible, and if you complain about a freelancer and give them one or two stars, they can also rate the client with a star. Do you understand that? I will advise everybody to stay away from it.”
Sinas, another user from the Netherlands, also wrote about the risks of being scammed.
“Upwork is a joke. We got scammed and opened a dispute. The scammer is not responding and Upwork is literally saying “he is not responding so we are closing your dispute in his favor”…”
If you used this platform earlier and were quite satisfied with it but now feel that you need to look for an alternative to Upwork, you are not alone. After the analysis of users’ reviews, we have concluded that the platform was a better place some time ago. However, the introduced changes and general trends in the freelancing market have done their job.
Victor from Poland shared his thoughts:
“Not recommend to anyone, nor freelancer neither clients.
Was the best freelance platform. Now it’s the worst.
– Average bid cost is about 3$ while average project cost is 10$.
– About 85% of projects posted are fake.
– Service fee is 2 times larger than it was year ago.
– Awful support (looks like it doesn’t exist at all).
– Scammers scammers scammers.
Extremely greedy company who ruins their business themselves.”
Of course, all these reviews are just a reflection of someone’s experience. And probably you will have a completely different situation. Nevertheless, all opinions should be taken into account to get a full picture.
How to find the best alternative to Upwork: Factors to consider
When companies have already worked with external developers, usually they base their decisions on the results of such cooperation. However, when they do not have any relevant experience, it is necessary to attentively consider various parameters and aspects.
Budget and costs.
Freelancers traditionally have lower rates than software development companies. Nevertheless, do not forget that the rates of agencies may differ. The region where developers are based, their level of seniority, and the tech stack that they work with are among those factors that have the strongest impact.
Also, it’s important to remember a very simple rule “buy nice or buy twice”. If you see very low rates on Upwork or any platform managed by any Upwork competitor, it can be an alarming sign. And the risk of facing a scammer in this situation is too high.
That’s why you should always bear in mind that rates should be reasonable. And sometimes it’s sensible to pay more but to get the best final result, instead of paying less and having something that doesn’t meet your requirements.
Project complexity and urgency.
It would be wrong to say that Upwork is pure evil. Sometimes it is a good idea to hire a freelancer there if you have a small and simple task that would be done as soon as possible. Theoretically, on Upwork, you can hire a specialist just on the same day when you publish your job offer. With software development agencies, such “magic” is also possible. At UMIND, we had a case where we found a specialist in less than 24 hours. But as a rule, the entire hiring process takes up to 1 week. That’s why for very urgent and not time-consuming tasks, Upwork can be a good choice. But do not forget that with important complicated projects, it’s always better to choose a partner whom you can trust.
Desired level of control and involvement.
When you work with freelancers, you should be ready for the fact that you will have practically zero control over the process. Freelancers will get your task and come back to you with the result. Such specialists have their workflows and it is not always possible to have any influence on them. In the case of agencies, you have more freedom. Usually, companies offer different engagement models and some of them allow you to fully control the work of developers. Moreover, when you hire dedicated developers, they become your team members on some particular projects. It means that you can leverage a high level of engagement.
Long-term relationship goals and scalability.
For those, who want to establish long-term cooperation with tech experts, we recommend looking for an alternative to Upwork. Freelancers are usually interested in project-based jobs and short-term tasks. Moreover, when your project needs extra skills, you need to start looking for new developers on your own. But when you work with an agency, you just need to share your updated requirements and all the rest will be done for you. And of course, agencies do their best to establish long-term cooperation with customers and often provide full-cycle development services.
How to make the right choice between Upwork and a software development agency
We’ve prepared a short questionnaire for you.
- Do you want to avoid tasks related to hiring?
- Are you interested in stable communication with developers?
- Do you have a project that requires strong professional skills?
- Do you want to be confident in the quality of the final results?
- Is it important for you to have a flexible and scalable team of developers?
If you answered “yes” to all the questions, cooperation with an agency will be the best alternative to Upwork in your case. Nevertheless, do not forget that each case should be considered individually. And even when for some projects you hire an agency, for some other tasks, it will be better to work with freelancers.
FAQ
1. Are there any risks associated with using Upwork or agencies?
Like any business decision, there are risks involved in using the services of Upwork and agencies, such as the potential for project delays, communication issues, or dissatisfaction with deliverables. It’s essential to research and vet Upwork freelancers or agencies thoroughly before engaging their services.
2. Are there any scammers on Upwork?
Unfortunately, it is so. Some unscrupulous freelancers take advance payment and disappear or deliver results that do not meet your expectations and requirements. Nevertheless, such risks also exist when you establish cooperation with unreliable software agencies. That’s why you always should be very attentive. And we recommend you conduct diligent market research before making any decisions.
3. Can I switch between Upwork and agencies for different projects?
Yes, many individuals and businesses choose to use both Upwork and agencies like UMIND depending on the nature of their projects, budget constraints, and other considerations. Usually, businesses choose a partnership with the software dev agency for a long ride. However, when you have minimal and urgent tasks, very often it is much more sensible to hire a freelancer on Upwork.
4. What are the benefits of working with agencies?
Agencies often have an established reputation and credibility, provide dedicated account management and support, and offer streamlined processes and quality assurance. As a rule, they have straightforward business processes and all the terms of cooperation are clearly stated in the documents that should be signed by both sides. It means that you can feel that your rights are well protected.
5. Are there any legal or regulatory considerations when working with freelancers or agencies?
Depending on your location and the nature of the work, there may be legal and regulatory requirements to consider when engaging freelancers or agencies, such as tax obligations, intellectual property rights, and data protection laws. It’s advisable to seek legal advice or consult relevant authorities to ensure compliance with applicable laws and regulations.
6. What support and resources are available for users of Upwork and agencies?
Upwork provides help articles, community forums, and customer support channels, to assist freelancers and clients with platform-related questions and issues. However, when it comes to customer support, you should be quite attentive. As many users note in their reviews, this service is not always helpful. Agencies may offer dedicated account managers, project coordinators, and other support staff to ensure smooth project execution and client satisfaction.
7. How do payment structures differ between Upwork and agencies?
Upwork typically operates on a per-project or hourly billing basis, with freelancers setting their rates and clients paying for completed work. Agencies may offer various pricing models, including hourly rates, fixed-price contracts, or retainer agreements, depending on the nature of the project and services provided.
Final word
Both options, Upwork and agencies, have their pros and cons. And it is impossible to make the right decisions without analyzing the entire specificity of your needs and expectations. Nevertheless, as practice shows, Upwork can be a good solution mainly for small tasks that should be fulfilled as soon as possible.
Though working with freelancers is associated with some risks, it’s a chance to quickly hire people with the required skills and save money.
Cooperation with an agency is often viewed as a more reliable option. And it is so. In this case, a company takes the whole responsibility for various administrative tasks, while you can concentrate more on your project. However, to enjoy all the available benefits, you need to find a good professional agency, like UMIND.
At our company, we take care of our reputation. That’s why for us, it is vital to cooperate only with the best developers who will be able to demonstrate the highest quality of their work.
We have well-established business processes that allow us to find candidates with the most appropriate skills for you just within a couple of days. We deeply understand the needs of businesses and offer the most comfortable terms of cooperation.
If you are looking for an Upwork alternative, UMIND can become an excellent choice.
Want to learn more about our services, do not hesitate to contact us.