Freelancing and outsourcing are two terms that are often used to mean the same thing. But these two words have two opposite positions in terms of meaning and function. Many people use these two words as synonyms of each other because they do not know the meaning of these two words. Let’s learn about the difference between these two words.
8 Differences Between Freelancing and Outsourcing
- Etymology
- Definition
- Relationship
- Function
- Remuneration
- example
- facilities
- The disadvantages
1. Etymology
Freelancing: The word ‘Freelancing’ is derived from the words ‘Free’ and ‘Lance’. ‘Free’ means ‘Independent’ and ‘Lance’ means ‘Instrument’. So ‘Freelancing’ means ‘working independently’.
Outsourcing: The word ‘Outsourcing’ is derived from the words ‘Out’ and ‘Source’. So, ‘Outsourcing’ means ‘getting a source from outside’.
2. Definition
Freelancing: Earning by working independently without any obligation is called Freelancing.
Outsourcing: Outsourcing is the doing of a job by a freelancer without being employed.
3. Relationship
Freelancing: A freelancer undertakes a task and is paid for the task by an outside source (outsourced contractor).
Outsourcing: An outsourced contractor provides work and payment to the freelancer.
4. Function
Freelancing: A freelancer works as an individual worker. He is under no obligation to do any work. He can do it whenever he wants. If he completes and submits the work within the stipulated time, he will get paid otherwise he will not be paid.
Outsourcing: An outsourced contractor completes the task to maximize the use of his own resources by simply doing his work without hiring anyone. Outsource contractors can also act as intermediaries between organizations and freelancers.
5. Remuneration
Freelancing: A freelancer is paid according to his work. He receives payment/remuneration but not salary.
Outsourcing: An outsourced contractor does not pay freelancers according to their work. He does not need to pay any salary to the person doing this work.
6. Example
Freelancing: Suppose, “ Arnab Saha ” is a freelance writer. He gets an offer from “Shawn” for a job. “Shawn” gave him three topics to write three articles of at least 1000 words each. “Shawn” promises to pay Arnav $20 per article. Now, Arnav has the freedom to take or leave a job, and that is basically called freelancing.
Outsourcing: “ Shawn Saha ” is an outsourced contractor in this case. He is an employee of a company. The organization needs some articles for its website. There is no employee who can write efficiently. So, instead of hiring a full-time employee, the organization hires a freelancer to do the work. Thus, this outsourcing saves a significant amount of money for the organization.
7. Facilities
Freelancing:
- You are not necessarily obligated to do any particular thing.
- There is no rule that you must complete the work between 9 am and 5 pm or between 10 am and 6 pm. You can do it whenever you want.
- No one can impose authority over you. You will be your own boss.
- Everything is flexible in freelancing. You have the freedom to make decisions.
Outsourcing:
- Through outsourcing, you can get the job done by spending the least amount of resources and money.
- You don’t need extra office space and there is no question of being accountable to the worker.
8. The disadvantages
Freelancing:
- There is always a risk of not getting paid for freelancing. There is no guarantee that you will be paid or that you will be offered a job.
- Freelancing work is not always available. You can’t always find the work you want.
- There is no fixed income in freelancing. You can earn anywhere from 1 lakh to 10 thousand in a month. It depends on how much work you can get, do or want to do.
Outsourcing:
- There is no guarantee that you will be able to complete the task. A freelancer can always refuse to do the work.
- You will not get quality work every time by outsourcing.
- The task may take longer than usual to complete.
Then surely you have understood the differences between freelancing and outsourcing. Since freelancing and outsourcing are two popular ways to earn money these days, everyone should have a proper understanding of both. Hopefully, from this article, you will get a clear idea about the difference between freelancing and outsourcing and be able to choose the right path for yourself.
