Guide for companies
Software house or freelancer?
Updated August 2026
It is the first decision to make, and it is usually made on clichés: “freelancers are risky”, “agencies are expensive”. Both false as general rules, both true in specific cases. The right answer depends on the type of project, not the type of supplier — and this guide helps you recognise your case.
The comparison, point by point
The real differences between a good freelancer and a good software house. Both “good”: comparing the best of one category with the worst of the other helps nobody decide.
| Aspect | Freelancer | Software house |
|---|---|---|
| Cost | Lower rates: you pay the person, not the structure. Often 40–50% less for the same project. | Higher rates: sales, project managers and offices are in the price. In exchange, more organisation. |
| Communication | You talk directly to whoever writes the code. No intermediate steps, no translations. | You go through an account manager. Tidier communication, but the message crosses more hands. |
| Continuity | If they stop, the project stops. Mitigated by documentation and code ownership. | If one person leaves, another takes over. It is the real reason you pay more. |
| Speed to start | Days: no framework contracts, no engagement processes. | Weeks: quoting, contracts, team allocation. |
| Small projects | Their home ground: a €10,000 project matters to them. | You are often last in the queue: a small project does not cover the structure. |
| Large projects | A single freelancer saturates; you need several, and coordinating them falls on you. | Their home ground: team, method and capacity to absorb peaks. |
When to choose a freelancer
A freelancer is almost always the more efficient choice when the project is well-bounded and direct communication is worth more than structure.
- Projects up to €40–50,000, with a scope one person can hold in their head.
- Evolving and maintaining existing software: you need one person who knows it, not a team.
- Integrations between systems (ERP, e-commerce, machinery): vertical, well-delimited work.
- When you want to talk to whoever writes the code, without intermediaries.
- When budget is the deciding variable and you are willing to manage the relationship yourself.
When to choose a software house
Structure costs money, and there are projects where it is worth every euro.
- Projects above €100,000, where a team with distinct roles is needed.
- Business-critical systems, where downtime costs more than the premium.
- When you need contractual guarantees of multi-year continuity.
- When nobody internally can manage the supplier, and you want to delegate coordination too.
Three clichés worth dismantling
“Freelancers disappear”
It happens, and it is almost always an engagement mistake: no agreed code ownership, no documentation required, everything paid at the end. With your own code, an accessible repository and staged deliveries, changing developer is a nuisance, not a catastrophe.
“An agency gives me more quality”
Quality comes from people, not the sign on the door. Software houses often employ the same profiles you find freelancing — sometimes literally the same people, subcontracted. Judge who will work on your project, not the logo.
“With a freelancer I have no guarantees”
Guarantees come from the contract, not from the supplier’s legal form: written scope, verifiable deliveries, code ownership, timelines. A good contract with a freelancer protects you more than a vague one with an agency.
Frequently asked questions
How much does a freelancer cost compared to a software house?
Roughly, an Italian freelance developer works at €250–500 a day depending on seniority and specialisation; a software house bills the same profile at €400–800. On a finished project the typical difference is 40–50%.
What if the freelancer gets ill or disappears mid-project?
You manage that risk upfront: code ownership from day one, a shared repository, staged deliveries paid on progress, documentation as part of the supply. That way another developer can take over without starting from scratch.
Can I start with a freelancer and move to a software house later?
Yes, and it is a common path: a freelancer builds the first version, and if the product grows you structure a team. It only works if the code is yours and documented — one more reason to agree on it immediately.
How do I find a reliable freelancer?
Look at how they work before looking at the portfolio: they ask questions about the problem, explain the approach in plain words, put timelines and code ownership in writing. On Araknet you post the project anonymously and whoever replies presents themselves with profile and portfolio.
For a €15,000 project, which is better?
Almost always a freelancer: at that figure a structured software house struggles to prioritise you, while for a freelancer it is a significant project worth real dedication.
See also: How to find freelance developers · What software development costs.
Get offers and decide with numbers
Post the project anonymously on Araknet: offers arrive from freelance developers with price and timeline, and you decide by comparing real proposals — not clichés.
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