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News and Trends / Freelancers

Why Startups Should Consider Outsourcing Work to Freelancers

Freelancers are not bound by geography and this enables companies to partner with the best minds to get their job done
Why Startups Should Consider Outsourcing Work to Freelancers
Image credit: Shutterstock
- Entrepreneur Staff
Feature Writer,
3 min read

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Gone are days when “freelancing” was considered an unreliable career choice. Many freelancing jobs have gained popularity in recent times, with companies embracing a flexible working environment. The rising demand for outsourcing work to freelancers has led more and more people to opt for freelancing rather than taking any full-time job. The main reason is the challenges the individuals are facing in the full-time job market.

According to a recent Paypal report, Web & mobile development, web designing, internet research and data entry are the key focus areas for Indian freelancers while some of them are also engaged in accounting, graphic design, and consultancy.

The report highlighted that many individuals took to freelancing after having heard about it from friends, family, social media and freelancing platforms. Of the reasons that drove them to adopt freelancing, earning more income, flexibility in schedules and ability to choose who to work for, topped the list.

Entrepreneur India lists down a few reasons why should startups hire freelancers.

To Cut Down on Rising Costs:

One of the important aspects of any startup is the financial stability and sustainability. The Start-up ecosystem is predominantly fast-paced and dynamic. Most often, start-ups run on tight budgets and strict deadlines. According to Geetha Prabhu, Founder and COO,, one of the perks of outsourcing jobs to freelancers, contractors or consultants is saving on costs and simultaneously getting the job done as soon as possible.

Get High-quality Work on Time:

Prabhu further emphasized that hiring a full-time employee is a gamble, at least for start-ups as the founders are not sure if the resource is competent enough to add value to the vision and mission of any start-up.

"Practically, one interview is just not enough time to assess anyone's capability. Contractors or freelancers become a good bet in terms of work & quality assessment as the duration is always less," she said.

Accommodating for a Short-term Project:

Mostly, startups and smaller businesses hire freelancers for short-term projects that their full-time members can't do.

Riya Padhye, Heads the HR Department at, feels if the kind of work is short-term and the company doesn't want to commit to a fixed cost and at the same time try out people especially in fields like graphic designing, then freelancing option may make sense for startups.

"However, if you are looking at setting up certain crucial and sustainable functions in the organization and the role requires complete commitment then freelancer may not work. The connectedness with organization's vision and goals is much needed," she added.

Partner With Best Minds:

There are definite advantages to partner with freelancers while building the company. 

Dhimaan Shah, Founder, StyleCracker shared a young company gets clear benefits from working with freelancers in terms of best practices from other industries, flexibility in building a team and a much lower impact on its expenses. 

"Since freelancers work on a few different projects at a time, they are constantly upskilling themselves, widening their networks and working towards acquiring newer skills that allow bringing a different perspective to the business. Also, as they are not physically bound by geography, you are able to partner with the best minds on any project. This is a huge advantage in certain industries," he said.

Here Are a Few Ways to Make Good Money As a Freelancer