Freelancer or small team for custom software development?
Freelancer or small team for custom software: who works on a build, what the price gap buys, the truck factor and three questions to ask about any quote.
Custom software can be built by one freelancer or a small team of two to five people. A freelancer is right for a small, clearly specified project with no dependencies on other systems; a team is right when the system must keep working when one person cannot. For the owner holding two quotes and seeing only the difference in the number.
Who actually works on a software build
Every build involves five jobs: requirements, screen design, code, testing and release. With a freelancer, one person does all five. In a team someone else reviews and a third person tests; that is what the price gap buys.
How many people does an app need? For a project of a few weeks, one to three; for a system of a few months, four to six. What counts as small: small-scope software projects.
Freelancer or small team: what is inside the price
| Question | Freelancer | Small team |
|---|---|---|
| Who writes the code | One person | One or two |
| Who reviews the code | Nobody, unless you pay for it | A colleague, before every delivery |
| Who takes over if the author is ill or quits | Nobody | Someone who has seen the code |
| Who holds the repository and accounts | Often the author | You, from day one |
| Hourly rate | Lower | Higher, with fewer hours of fixes |
Pricing models: fixed price vs time and materials; ownership: who owns custom software you paid for.
The truck factor: a risk that is not personal
The truck factor is the smallest number of people whose departure stalls a project. Avelino and colleagues computed it in 2016 for 133 popular GitHub projects: 65 % had a truck factor of 2 or less, so losing two people can stall the project. With a freelancer the factor is 1 by definition.
This is structural risk, not a judgement on anyone: illness, a new job or a move are equally likely for everyone. The only question is who takes over, and what that costs: software maintenance and support cost.
When a freelancer is the right choice
- It takes a few weeks and fits one clear specification.
- It does not depend on other systems: ERP, web shop, bank.
- Someone can review or take over the code.
- Repository, hosting and domain are in your name from day one.
If all four hold, a team is more expensive for no reason; if one fails, the price gap is the price of replacement.
Three questions that expose the difference in any quote
- Who, besides you, reviews the code before delivery?
- Who takes over if the author cannot work tomorrow, and how quickly?
- Whose name is on the repository, hosting and accounts?
They apply to agencies too; the longer list: how to choose a development agency.
Frequently Asked Questions
Is a small team the same as an agency? A team of three to five is the smallest agency; the difference is overhead, not roles.
Is a freelancer cheaper in the end? For a small, closed project, yes. For one that depends on other systems, the gap returns as fixes and takeover.
Should we hire our own developer instead? That is a different decision, about hiring: in-house developers vs agency.
A freelancer has already half-built our app. What now? Ask for repository and account access now, while the relationship is intact.
Related Articles
- How to choose a development agency
- Small-scope software projects
- Who owns custom software you paid for?
Holding two quotes?
Send us both. We will reply with what each price includes and whether one person is enough - no obligation.
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