Why contracting is better than hiring?

It can be tricky to decide whether you should hire employees or freelance contractors to run a successful business in the IT sector. In the contemporary world, contracting the employees is considered a better option because it shoves off a lot of load from the business and eventually brings more focus to the main work or project.

Hiring regular employees needs a lot of paperwork while contracted employees are liable for all the paperwork by themselves. Thus, it relieves the stress of the company of documentation and other legal responsibilities. They are not only easy to hire but also create a very good work-life balance thus contributing to your projects with positivity. They are much easier to help in expanding the business and taking it to greater heights as they work with a relieved mind. Especially in the IT sector, most of the companies provide the ease of working from anywhere at any time to the contracted employees.

However, if you are still confused about what to go with then you can go through the points given below:

Cost efficient

Although the contractors are offered the same salaries as the permanent employees for any project yet they cost less for the company’s budget. These employees are hired for a contractual period i.e. until the particular project is completed for which they are hired. So, the company has to pay only for the period of the project nothing more or less while permanently hired or full-time employees are paid with the same salaries throughout the year even when there is no project which adds extra cost on the firm’s budget. Thus, it can be said that contracting is better than hiring the full-time employees when it comes to the company’s budget because it is clearly a cost-efficient option.

Staffing Flexibility

If you are running a small scale IT business then hiring skilled employees on contractual basis will be better for you than hiring permanent employees. You can get the skilled employees whenever you need with the help of staffing agencies. These employees are hired on the basis of a written contract and that means they will leave without any hassle when the project is over. It can be very hectic to carry huge staff during the slow business period or when there are no or fewer projects while contacted employees are a better option in this sense. You can hire them for the required period only and then again hire the extra hands whenever required, very easily.

Remain up to date

The technology gets updated from time to time and the IT companies need professionals that excel in the updated technology like the updated plug-ins, updates in different languages, etc. so, by contracting the employees, you can get the personnel who are up-to-date with the technology and can handle the project very well. On the contrary, you will have to arrange workshops and training programs for your permanent employees. Contracting the employees will give you extra advantages of filling up the missing expertise in your team and this will be very beneficial for any of your project.

Also, it would be useless to hire a full-time employee for any expertise or knowledge of contemporary technology which might only be used in your current project and will be of no use in the future. Thus, you can get a contractual employee with the latest market expertise for your current project.

No risk of getting out of date

As mentioned above the contractual employees are skilled with the latest technology thus there is absolutely no risk of getting out of date. With the employees of the knowledge of updated technology, your projects will also be laid out as per the plans of advanced and current market technology. This will eventually help you in developing or creating the projects that will be loved by the public or your clients because who does not prefer the latest technology over an outdated one.

Less capital required

Hiring full-time permanent employees needs a larger capital and resources because you are not only paying them full salaries but there are also other financial benefits which you have to give to your regular employees like insurance, medical cover, pension, etc. Some companies also offer housing and transport facility to their employees which adds a great amount in the budget. Companies also have to pay for the training programs to keep up with the current technology and market which is yet another big expense. It can be difficult for a small startup to handle all these financial and managerial loads which can create imbalances.

But, on hiring the employees on a contractual basis, you will be eliminating all these issues because there is no need to pay for their insurance cover, housing, etc. These employees are hired for a short period of time i.e. only for a particular project. Also, they are already skilled with all kinds of latest technology and information, thus saving the training cost. So, it can be said that not only for big startups but also small startups can consider hiring employees on a contractual basis to begin a smooth and profitable business.

Less Risk

Without any doubt, hiring contracted employees is a safer option in various ways. Since they work for a short period, so neither there will need to introduce with the depths of the firms nor will they cheat or steal any crucial information. Also, they are hired on the basis of the written contract which is followed by a lot of rules and regulations. On any misconduct or disobeying the rules will be considered as a crime and will be liable for the punishment.

Due to the contract, there are hardly any chances that any employee hired on contractual basis will cheat or create a risk to the company while there is always a risk of such cases with regular employees.


Whether it is a small scale or large scale business, contracted employees are better than regular employees in many aspects, be it financial or managerial. These freelancers give a big push to the profits and easy management to the business as you are only paying them for the time when they are needed.  If you want some more information then Duftar is the one who can help you. It can help you in getting the best employees on contract basis so that you can get your projects completed with excellence.

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