Difference between Freelancing and Outsourcing

Get the Difference between Freelancing and Outsourcing from this page.Freelancing and Outsourcing are two different words and both have different meanings but we use these words in a similar ways. Many of us don’t know this before and maybe used this many times in a similar context. Freelancing is a source of earning independently and working without any restrictions. And Outsourcing is a way of earning by getting work from freelancers without any employment. Let’s discuss their difference in detail;

Difference between Freelancing and Outsourcing

Difference on the basis of Freelancing Outsourcing
Etymology The word Freelancing is the combination of two words “free” and “lance” where free means “independent” and lance means “machinery”. So, the meaning of freelancing is “Work Independently”. The word outsourcing is also the combination of two words “out” and “sourcing”. So, outsourcing means working from an outside source.
Title A freelancing person is known as Freelancer. The outsourcing person is known as the Client.
Skills A freelancer must have proper skills in a specific field. The client does not need any specific skills.
Example; “A” is a freelancer who is writing articles. “B” give him task of 3 articles and ask to complete it in $500. Now it depends on the B either he takes the task or refuse it. This is freelancing. The outsource contractor “A” is currently a worker of a company. His company asked him to write some articles for the website. Instead of hiring an employee, he prefers to hire a freelancer for this and save some money of the company.
Relation Freelancer directly gets the work and payment. Outsource contractor provides tasks and payments to the freelancer.
Commission A freelancer must have to pay a commission of 20% to the platform of freelancing. The outsourcing client have to pay 2% – 3% of the commission to the freelance platform.
Payment Freelancers directly get the payment according to the task he/she performed. Doesn’t get any salary. Outsource mediator pays to the freelancer according to the task he/she performed. Doesn’t get any salary.
Clients Review For the freelancer, clients review matters. For the mediator, client reviews do not matter.
Rate A freelancer fixes his rate according to the service. A outsources pays according to the finalized rate by the company and the freelancer.
Advantages The following are some advantages of freelancing;

  • No restriction on accepting the task or project.
  • No restriction on a time limit, you can do it when you want.
The following are some advantages of outsourcing;

  • No extra space is required.
  • Save a large amount of money.
Disadvantages The following are some disadvantages of freelancing;

  • There is a risk of payment and no guarantee that you receive payment or not.
  • Freelance work is not available always.
  • No fixed income on freelance. It depends on your work.


The following are some disadvantages of outsourcing;

  • There is no guarantee that you always do your work easily because many times freelancers refuse your work.
  • It may take more time for completing the work.
  • It’s not possible that each time you get handsome and quality work.

Functions of Freelancer and Outsourcing:

A freelancer is independent. He/she is not bound by work and does anything that he/she wants. He/she is allowed to work at any time. Freelancer only gets their payment if he completes his work other, he did not get any payment. And Outsourcing contractor contacts the freelancers and gets the work of his company without hiring any employee. Outsourcing plays the role of mediator between a company and freelance agents.

Difference between Freelancing and Outsourcing


It is the responsibility of the freelancer to meet the deadlines. He is answerable for all details of the project. Freelancers must need to communicate with their clients and give him/his a detailed description of the work. Freelancers are allowed to handle their projects with full control over a time limit. They work when they want. You are your own boss because no one else is your boss there.


The outsourcer is only responsible for completing the project and the details. No need to communicate with clients continuously during his/her work. Outsourcers are not allowed to work with free hand on time. The outsources have to complete the task in a time limit. There are restrictions on time so you have to do your work by spending a handsome amount of money and resources. If you have further any questions about the Difference between Freelancing and Outsourcing you can ask in the comment.

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