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Why IT companies prefer Remote Workers and Freelancers to work on Contractual Terms

The face of the modern workplace has changed considerably. Companies are expanding and going global, doing everything they can to bridge the skills gap and save costs.

More IT companies now prefer to work with remote workers and freelancers than ever before, especially when it comes to working on contractual terms.

What has shaped this trend? We discuss.

Why IT companies prefer freelancers and remote workers over other options

A major factor responsible for this is the fact that the traditional company-employee relationship no longer exists. That is – the concept of long-term employment, secure pensions, company-paid benefits, mutual loyalty, and so on.

Freelancing professionals understand the skills demand that exists in the IT market and don’t mind foregoing the above benefits – while smart and savvy companies understand that some of the best ways to “get the job done” in the IT industry is by hiring a remote workforce on a contractual basis. It’s a win-win, really.

In a Buffer survey conducted in late 2019, it was revealed that 91% IT companies who currently support the idea of hiring remote workers and freelancers have plans to continue doing so in the future. These are the reasons they listed:

Find the right talent anywhere

Forward-thinking and progressive IT companies, no matter what their scale, understand that a skilled workforce doesn’t have to be local or in-house. By hiring a remote workforce from overseas, companies can experience better diversity, which is not only good for business but also something that the majority of IT companies understand and value today.

Skilled IT professionals can be easily found on remote working and freelancing job sites all over the web – complete with ratings, reviews and a list of accomplishments to their name. It’s not hard for IT businesses to see how it’s a sound and secure investment.

Major savings

IT companies that are expanding, especially on a global scale, have stated that a growing remote workforce has helped them save plenty of hiring and overhead costs. According to another survey, the average savings that IT companies can expect by hiring remote workers is approximately £7,750 per employee every year. And this doesn’t include cost savings revolving around operations, overheads and day-to-day administration.

Morale boost

With worker morale soaring, an IT company can keep its turnover at a minimal. Not only that, but a higher staff morale means greater enthusiasm for the job at hand and far less absenteeism.

A study done by Stanford found that remote workers boasted significantly higher morale and job satisfaction levels than their cubicle-bound counterparts.

IT companies have clearly benefitted from this, choosing remote workers over in-house staff on a fixed contract.

Closing thoughts

One of the largest freelancing sites today, Upwork, has reported that the frequency of freelancing has grown over the last few years – with 1/3 of freelancers participating daily in gigs.

IT companies have everywhere have openly welcomed the concept of remote working – and these were just a few reasons why the trend is here to stay.

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