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Freelancers vs Agencies vs Nearshoring: which one to choose?

There are several ways to scale your software team with the talent you need. Let’s compare the different hiring modalities to help you determine which one is the best fit for your company’s needs.

by
Matías Acuña
|
January 17, 2025

Scaling a software team is no small task, and the options for hiring can feel overwhelming. Should you go with freelancers, rely on staffing agencies, or partner with a nearshore company? Each model offers unique advantages and challenges.

In Chapter 4 of our ebook, "The Path to LATAM’s Tech Talent: Nearshore Staff Augmentation in 2025", we break down these options to help you find the best fit for your business needs.

Option 1: Hiring Freelancers

Freelancers can be a great choice for short-term or highly specialized projects, but they come with notable risks:

Pros of Freelancers

  • Flexible hiring
  • Cost-effective for one-off tasks
  • Large talent pool

Cons of Freelancers

  • Lack of commitment
  • Inconsistent quality
  • Minimal control over tools and security protocols

Option 2: Hiring Staffing Agencies

Staffing agencies streamline the hiring process by preselecting candidates, but their approach often lacks depth:

Pros of Staffing Agencies

  • Quick access to a pool of candidates
  • Reduced administrative burden.

Cons of Staffing Agencies

  • Limited evaluation of cultural and technical fit
  • Short-term contracts
  • Minimal support after hiring.

Option 3: Nearshore Companies

Nearshoring combines the best of both worlds, offering the quality of an in-house hire with the flexibility of outsourcing:

Pros of Nearshore Companies

  • Rigorous talent screening processes ensure the right technical and cultural fit.
  • Comprehensive services, including hardware provisioning, payroll management, and ongoing support.
  • High retention rates and strong team integration.

Cons of Nearshore Companies

  • Typically higher costs than freelancers or agencies, but the ROI is significant for long-term projects.

Why Nearshoring Stands Out

Unlike freelancers or staffing agencies, nearshore companies like Devlane in LATAM provide end-to-end solutions:

  • Agility in finding the talent you need: Part of our recruitment efficiency is minimizing the time-to-hire. When a partner starts a search with us, we first offer ideal candidates from our internal bench—engineers with proven skills and experience. If necessary, our Talent Acquisition team, consisting of seven recruiters and an extensive network of partners across LATAM, begins a customized external search to find the perfect fit. New hires are fully onboarded and contributing in an average of just 45 days.
  • Effortless onboarding: Hardware delivery, preconfigured tools, and immediate readiness to start.
  • Enhanced security: ISO-certified processes for managing data and protecting intellectual property.
  • Talent retention: Dedicated career development plans to ensure long-term engagement and productivity.
  • Less administrative burden for your company: Coverage of tax compliance, hiring costs, and payroll aligned with each country’s regulations. Handling of travel-related paperwork for developers attending corporate trips or training sessions. Management of PTO, sick leave, benefits, and rewards, along with smooth and secure offboarding processes

Finding the Right Partner

Your outsourcing strategy depends on your business goals. For companies focused on scaling high-performing, secure, and cohesive teams, nearshoring offers unmatched advantages.

Ready to find the model that works for you? Dive deeper into the pros and cons of each option. Download "The Path to LATAM’s Tech Talent" now and take the guesswork out of building your next team.