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Staff Augmentation vs. Outsourcing vs. Freelancers: Which Model Fits Your Company?

Compare staff augmentation, project outsourcing, freelancers and employer-of-record services, and learn which fits your growth stage and goals. There are more ways than ever to add people to a tech company. The labels get blurred, so let's define them clearly and look at when each one works.

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The four common models

Freelancers. You hire individuals by the task or hour through a marketplace. It is fast and flexible, but freelancers juggle multiple clients, and continuity is rarely guaranteed.

Project outsourcing. You hand a defined scope to an agency. They manage the people and deliver the result. This works for a clear, finite build, but you have limited control over who does the work, and knowledge leaves when the project ends.

Employer of Record (EOR). A provider legally employs someone you found, handling payroll and compliance in their country. You still recruit, equip and support the person yourself.

Dedicated staff augmentation. A partner recruits full-time people for you, employs them, houses them in an office, provides equipment and HR support, and you direct their work. This is the 650 Tech Solutions model.

Side-by-side

Question

Freelancer

Outsourcing

EOR

Staff Augmentation

Who recruits?

You

Agency

You

Partner

Who directs the work?

You

Agency

You

You

Full-time and exclusive?

Rarely

No

Yes

Yes

Office and equipment provided?

No

Yes

No

Yes

Local people management?

No

Agency's

No

Yes

Knowledge stays with you?

Rarely

Rarely

Yes

Yes

How to choose

•         A one-off logo or a few bug fixes? A freelancer is fine.

•         A fixed-scope app you never plan to maintain? An agency may suit you.

•         You already found a specific person abroad? An EOR handles the paperwork.

•         You need long-term people who learn your product and stay? A dedicated team is the strongest fit.

Flexible by design

Dedicated doesn't have to mean big. We offer three levels: Hour Power (a few hours a day or week), Resource Up (one or more full-time people joining your team) and Team Power (an entire team housed with us, with a free people manager).

Not sure which model fits? Talk to us and we'll give you an honest answer, even if it isn't us.

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