Problems With the Freelancer or Outsourcing Model
Steven Brough
Transforming ideas into strategic assets, harnessing creative potential to deliver measurable, game-changing outcomes.
There are several potential problems with the freelancer or outsourcing model, including:
Communication barriers: Outsourced workers may not be located in the same country or speak the same language as the company, which can make communication difficult and lead to misunderstandings.
Time zone differences: If the outsourcing company and the client are in different time zones, it can be difficult to schedule meetings or get timely responses to questions.
Quality control: It can be difficult to ensure that outsourced work meets the same quality standards as work done in-house.
Lack of accountability: When an employee is outsourced, it can be difficult to hold them accountable for their work in the same way as an in-house employee.
Dependence: Companies may become too dependent on freelancers or outsourcing companies, which can make it difficult to bring the work back in-house if the need arises.
Legal & Contractual Issues: if not properly handled, it could lead to financial loses, or legal disputes.
Cultural differences: There can be cultural differences which can lead to confusion, missed expectations or lack of understanding between the company and the outsourced party.
Limited ability to build long-term relationships: The relationship with the outsourced worker is typically more transactional, which can make it harder to build a long-term, collaborative relationship.
These are the most common and easily manageable. In addition to the problems I mentioned, there are some additional issues with freelancer/outsourcing model that are less discussed and may be more uncontrollable:
Unpredictable availability: Freelancers may not always be available to take on new projects, which can make it difficult for companies to plan their workload.
Lack of commitment: Some freelancers may not be as committed to a project as a full-time employee, which can make it harder to achieve business goals.
Limited understanding of company culture: Outsourced workers may not have the same understanding of a company's culture and values as in-house employees, which can lead to misunderstandings and make it difficult for them to fully integrate with the company.
Inability to monitor work progress: Since the work is being done remotely, It may be hard to monitor the progress and the quality of work, or ensure the work is done within a set time frame.
Data Security: Outsourcing data-related work, such as software development, data entry, or data analysis, could lead to security risks, and data breaches.
Difficulty to manage multiple outsourced parties: managing multiple outsourced parties at the same time, could lead to a lack of coordination and communication, also it could be harder to ensure that they're all aligned with the company's goals and objectives
Inadequate Infrastructure: Outsourced worker may not have the necessary equipment or infrastructure to perform the job to the company's standard.
Limited capacity for scalability: If a company needs to quickly scale up its workforce, it may be difficult to do so with freelancers or outsourcing companies.
Outsourcing can be a great way for companies to access specialized skills and reduce costs, but it's important for companies to be aware of the potential challenges and take steps to mitigate them.
There are some issues with freelancer/outsourcing model that some people may prefer to avoid completely, but can have significant impact on a company if they are not addressed:
Legal and compliance risks: Outsourcing work to freelancers or companies in other countries may expose a company to legal and compliance risks, such as non-compliance with labor laws or data privacy regulations.
Intellectual property theft: When a company outsources work, it may be at risk of having its intellectual property stolen or misused.
Dependence on a single vendor: If a company becomes too dependent on a single freelancer or outsourcing company, it can be difficult to find a replacement if that person or company is no longer available.
Financial risks: Hiring freelance workers or outsourcing firms may lead to financial risks, such as non-payment, disputes over invoices, or delayed payment.
Reputation risks: If the outsourced work does not meet expectations or if there are issues with the work or the relationship, it can harm the company's reputation.
Talent Drain: In situations where the company outsources a specific skill set, it may lead to a lack of that skill set within the company, which could affect the company's competitiveness and ability to execute their own projects.
Operational risks: There could be operational risks, such as delays, disruptions in workflows, increased management costs, lower efficiency, and quality.
It's important to be aware of these risks, develop a plan to mitigate them, and have a fallback plan in case they occur. This may include conducting thorough research on the freelancer or outsourcing company, setting up proper contracts and agreements, and regularly monitoring and evaluating the relationship to ensure that it is meeting the company's needs and adhering to the company's policies and expectations.
Freelancing can be a challenging endeavor, and there are several reasons why a freelancer may be struggling. Some of the reasons include:
Lack of stability: Freelancing often involves a lack of stability in terms of work and income, which can be difficult to manage and plan for.
Isolation: Freelancers may work alone, which can lead to feelings of isolation and disconnection from the broader business community.
Difficulty in finding new clients: Finding new clients is an essential part of freelancing, but it can be time-consuming and difficult to do, especially for new freelancers.
Managing finances: Freelancers often have to manage their own finances, including invoicing and tax compliance, which can be challenging and time-consuming.
Difficulty in setting boundaries: Freelancers often have to set boundaries and establish work-life balance, which can be difficult to do when working from home or being self-employed.
Managing work-life balance: Freelancers often work independently, without a boss to set clear boundaries. Without someone setting clear deadlines, freelancers may find themselves overworking or overwhelmed by the workload.
Lack of Benefits: Freelancers may not be eligible for the same benefits as traditional employees, like health insurance or retirement plans, which can be a significant disadvantage.
Difficulty in providing proof of income: Freelancers often have to prove their income to get loans, mortgages or other credit applications
Here are a few examples of potential issues I mentioned earlier:
Lack of stability: John is a freelance graphic designer who has been in the industry for several years. Despite having a steady stream of clients, he finds that the work is not consistent and he often goes through periods of feast or famine. He struggles to plan for the future and to balance his finances during lean times.
Isolation: Rachel is a freelance writer who works from home. She finds that working alone can be isolating and that she misses the camaraderie and professional development opportunities of working in an office environment.
Difficulty in finding new clients: Paul is a freelance software developer who specializes in developing mobile apps. He has been in the industry for five years, but he has found that it has become increasingly difficult to find new clients as more and more businesses are outsourcing their development work to other countries.
Managing finances: Karen is a freelance event planner who has been in the industry for ten years. She finds that managing her finances can be challenging and time-consuming, especially since she has to deal with invoicing, taxes and compliance.
Difficulty in setting boundaries: Alice is a freelance accountant who works from home. She finds it difficult to set boundaries between her work and personal life, and she often finds herself working longer hours than she would like to.
Managing work-life balance: Michael is a freelance engineer who often works on projects with tight deadlines. Despite his best efforts, he finds himself working long hours, and as a result, his work-life balance is suffering.
Lack of Benefits: Sarah is a freelance consultant who recently started her own business. She finds that not having benefits like health insurance, retirement plans or paid time off, puts her at a financial disadvantage compared to her peers who work in traditional roles.
Difficulty in providing proof of income: David is a freelance photographer who is looking to purchase a house. He finds that it is difficult to provide proof of income, and his mortgage application is denied because he cannot provide a steady stream of income.
Keep in mind that the specifics of each person's situation will vary. Additionally, freelancing is a diverse field and there are many different types of skills that freelancers can have, and therefore, their problems and struggles will vary too.
The examples I provided are meant to give a general idea of the types of challenges that freelancers with different skills might face. However, it's important to keep in mind that every freelancer's situation is unique, and there may be other factors at play that contribute to their struggles.
It's also important to mention that Freelancing has its upsides, like the freedom of working on projects that align with your skills and interest, the flexibility to work on your own schedule and the ability to be your own boss.
It's also worth remembering that many of the struggles that freelancers face can be mitigated with proper planning, communication, setting boundaries and having the right resources.
Freelancer Reputation
Reputation is a crucial part of a freelancer's life, as it can have a significant impact on their ability to find new clients and grow their business. A good reputation can open doors to new opportunities and help to establish a freelancer as a reputable and reliable professional in their field.
Here are a few ways in which reputation matters to freelancers:
Client acquisition: A good reputation can help to attract new clients, as potential clients will be more likely to trust and work with a freelancer who has a good reputation in their field.
Pricing power: A freelancer with a good reputation will be able to command higher rates for their services, as clients will be willing to pay more for the expertise and quality that a reputable freelancer can provide.
Networking opportunities: A freelancer with a good reputation will be more likely to be invited to speak at events, to be quoted in the media, and to be recognized as an expert in their field, which can lead to new opportunities for networking and collaboration.
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Job security: A freelancer with a good reputation will have an easier time finding work and keeping clients, which can help to ensure a steady income and job security.
Credibility: A good reputation gives freelancers more credibility, which can help to build trust and confidence with potential clients and collaborators
Reputation is built over time, and freelancers should focus on building a reputation of professionalism, reliability and quality of work. This can be achieved by consistently delivering quality work on time, being responsive and easy to communicate with, and being honest and transparent in all business dealings. Additionally, a freelancer can leverage social proof by getting client's testimonials, that can be used as a form of validation of their expertise and good work.
It's also important to note that a freelancer's reputation can be damaged by poor work or unprofessional behavior, so it's essential to be mindful of how you're perceived and to work to maintain a positive reputation.
These types of websites, also called "online staffing platforms" or "freelance marketplaces" connect businesses with a global network of freelance professionals, and provide a platform for businesses to post projects and for freelancers to bid on them. They often provide a wide range of services, like software development, writing, design, data entry, and many others.
Some of the key features of these websites typically include:
Project posting: Businesses can post projects and provide details about the scope of work, budget, and deadline.
Bidding: Freelancers can then bid on the projects and provide a proposal, including their qualifications, experience, and pricing.
Escrow payments: The platforms generally handle the payments, by holding the money in escrow and releasing it to the freelancer only once the project is completed and accepted by the client.
Rating and review system: The platforms also provide a way for both parties to rate and review each other after the completion of a project.
Communication tools: Platforms generally provide tools such as chat, email, or video conferencing to facilitate communication between the client and the freelancer.
Dispute resolution: They often have a system in place to handle disputes and conflicts that may arise during the course of a project.
These online platforms can be a great resource for businesses looking to outsource work and for freelancers looking for new clients. However, as I mentioned earlier, it is important for companies to conduct thorough research on the freelancer or outsourcing company, set up proper contracts and agreements, and regularly monitor and evaluate the relationship to ensure that it is meeting the company's needs and adhering to the company's policies and expectations.
Getting Your First Project When You Are New
It can be more challenging for a new freelancer to secure their first project, compared to a freelancer with a proven track record of delivering quality work and receiving high ratings and reviews.
Here's why:
Lack of experience: New freelancers may have less experience in their field and may not have a portfolio of work to showcase to potential clients. This can make it difficult to demonstrate their skills and qualifications to potential clients.
Lack of reputation: New freelancers may not have built a reputation yet, and potential clients may be more hesitant to work with someone who has no history of completed projects or client testimonials.
Competition: There is usually a lot of competition among freelancers on these platforms, especially for entry-level and lower-paying projects. New freelancers may find it difficult to stand out among the many other bidders.
Bidding and negotiation: New freelancers may not have the experience or skills to negotiate rates, present their proposals in a clear and compelling way, or effectively bid on projects.
On the other hand, a freelancer with a proven track record of delivering quality work and receiving high ratings and reviews will have an easier time getting new projects. This is because:
Proven track record: Clients will be more likely to trust a freelancer who has a history of delivering quality work and receiving positive feedback.
Reputation: A freelancer with a good reputation will be more likely to be recommended to others and will be in a stronger position to attract new clients.
Competitive advantage: Having a good portfolio, testimonials and reviews, can give freelancers a competitive advantage in the bidding process, as they will be able to demonstrate their skills and qualifications to potential clients.
Pricing power: Freelancers with high ratings and reviews may be able to command higher rates for their services, as clients will be willing to pay more for the expertise and quality that a reputable freelancer can provide.
It's important to remember that building a reputation and getting your first project as a freelancer can be challenging, but it's not impossible. By providing high-quality work, communicating effectively, and building a strong portfolio and reputation, new freelancers can increase their chances of success in the long term.
A Smart Approach To Working With Freelancers,
Hiring newbie freelancers can be a smart approach to working with freelancers, especially if you're working with a low budget. By working with new freelancers and building a relationship with them over the course of several projects, you can help them to gain experience, build a portfolio, and establish a reputation, while also getting high-quality work at a lower cost.
By giving them positive feedback and reviews, you will also be helping them to build their reputation and attract future clients, which can be beneficial for both you and the freelancer. This is because positive feedback, testimonials and reviews can help to establish the freelancer as a reputable and reliable professional in their field, which will make it easier for them to find new clients in the future. And on your side, by doing this you'll be building a pool of loyal, skilled, and experienced freelancers that can help you to achieve your project goals efficiently and effectively.
It's worth mentioning that, when working with new freelancers, it's important to be patient and understanding as they may need more guidance and support in the beginning. As long as you communicate clearly, provide feedback and mentoring when needed, and keep an open line of communication throughout the project, you can help them to improve their skills and increase their chances of success.
Freelancer Reputation Building
There is a large pool of new and inexperienced freelancers on online staffing platforms, and they can be a great resource for businesses looking to outsource work on a budget. By working with these new freelancers and building a relationship with them over the course of several projects, you can help them to gain experience, build a portfolio, and establish a reputation, while also getting high-quality work at a lower cost.
By offering opportunities to new freelancers, you're not only helping them to develop their skills and build a portfolio, but you're also helping to create a mutually beneficial relationship, where they can grow their skills, gain experience and build their reputation while getting work, and you can have an efficient and cost-effective solution for your projects needs.
Dot your i's and cross your t's
It's also important to mention that you should ensure that you are also adhering to all legal and compliance regulations, as well as establish clear guidelines for the projects and communication with the freelancers. Additionally, it's important to make sure that the freelancer understands your expectations, goals and project requirements.
Overall, your approach to working with new and inexperienced freelancers can be a great way to get high-quality work at a lower cost, while also helping new freelancers to establish themselves in their field.
As well as giving a 5-star review, could be to provide feedback and constructive criticism to help the freelancer improve their work and better understand your expectations. Many platforms have a feedback system that allows you to provide a detailed review of the work performed, and you can use it to give specific feedback, whether positive or negative, about the work performed.
It's important to keep in mind that new freelancers may be more sensitive to negative feedback, so it may be better to deliver it in a constructive way, such as suggesting improvements or pointing out specific areas where the work could have been better.
Ultimately, it's important to approach the review process thoughtfully and to be honest and transparent in your feedback. This will help to ensure that the review system remains a valuable tool for both businesses and freelancers.
Take On A Coaching Role When You See Them Struggling.
Providing coaching and mentoring to new and inexperienced freelancers can be a great way to help them improve their skills and become more successful in their field. This not only can be good for them, but also can be good for you as their client, as they will be able to deliver better work, and have a better understanding of your expectations and requirements.
Here are a few ways in which you could provide coaching and mentoring to new freelancers:
Provide feedback and constructive criticism: As I mentioned before, instead of just giving a 5-star review, you could provide specific feedback on their work, whether positive or negative, and suggest improvements or point out areas where their work could have been better.
Offer guidance and support: Provide new freelancers with guidance and support on how to improve their skills, and how to navigate the platform and find new clients.
Share industry insights: Share your knowledge and experience of the industry with new freelancers, and help them to understand the market and the type of work that is in demand.
Connect them with other freelancers: Connect new freelancers with other experienced freelancers, and encourage them to network and collaborate with their peers.
Be available and responsive: Be available to answer questions and provide support when needed. This can help to build trust and a sense of partnership, making the freelancer feel more comfortable and confident in their work.
It's worth noting that this approach takes time and effort, but it can be a valuable way to build a strong and successful relationship with new freelancers and ensure that the work is delivered to your expectations. Additionally, by taking on a coaching role, you are not only helping the freelancer to improve their skills and build their reputation, but you're also building a pool of loyal and skilled freelancers that can help you to achieve your project goals efficiently and effectively.
If you're having trouble contacting a freelancer on a online staffing platform such as Upwork, there are a few things you can try to get in touch with them:
Use the platform's messaging system: Most online staffing platforms have a built-in messaging system that allows you to send and receive messages with freelancers. You can use this system to reach out to the freelancer and ask for help or clarification.
Send an email: If you have the freelancer's email address, you can try sending them an email outside of the platform. This can be especially useful if you have a lot of information or documents to share that might be difficult to convey through the platform's messaging system.
Try a different form of communication: Some freelancers may prefer to communicate via chat or video conferencing, rather than through email or the platform's messaging system. If you're having trouble reaching a freelancer, you could try reaching out to them via a different form of communication.
Check their freelancer profile: In some cases, the freelancer may have included contact information or other details about their availability on their freelancer profile. If so, you can try contacting them through the information provided.
Use a different way to find them: Sometimes you can find freelancers in other social networks such as Linkedin, Twitter, or by doing a simple Google search. This can be useful if you are unable to find them through the platform, or if you are looking for a more specific freelancer with a particular skillset.
Leave a public message: If you're unable to reach a freelancer through other means, you can try leaving a public message on the platform. This might not be the most direct way of getting in touch with the freelancer, but it can be an effective way to get their attention.
LinkedIn can be a useful tool for finding and connecting with freelancers, as it is a professional networking platform that is widely used by professionals, including freelancers. Many freelancers have a LinkedIn profile, which they use to showcase their skills, experience and qualifications, and to network with other professionals in their field.