Freelancers in the World of IT

Balazs Refi

December 9, 2024

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What does it mean to be a freelancer? What makes being a freelancer different from being an employee? Learn more from the Bluebird article!

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What is Freelancing (or Who is a Freelancer)?

A Freelancer is an IT expert who is not an actual employee of a company but performs tasks on an individual project as an entrepreneur (as a self-employed person or as a company - Limited Company, Limited Partnership)

Typically, the length of a project is around 3-6-9 months. At the beginning, or following the project launch, the freelancer receives a request, performs the tasks, and moves on to the next project. That is how a classic IT freelancer works.

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The Popularity of Freelance Projects

Mobility in the field of IT has been growing for years. Mainly because it is usually viewed as a combination of projects; as a result, the actual contracts are signed for a project or for the development of software products.

The other reason is that IT is in continuous development and change, the old static way of employment doesn’t suit the workers anymore.

We have asked thousands of IT experts yearly about their biggest motivations. The results are undisputed: professional challenge, interesting and new technologies, attractive wages. These factors often align better with the freelancer model, where projects can be tailored to their skills and interests. The answer is not that they would like to work with a huge brand. They would like to work with a good brand.

They are not even looking for a stable job. In IT there is a permanent lack of workforce, and this will get worse with time. IT experts are not worried about not finding a job, but to work with interesting things is what matters most to them. Plus, wanting to get well-paid is obvious, besides other good reasons why top software engineers work as freelancers.

Freelancers in the world of IT - Bluebird blog

Covid19 and Remote Projects

In 2020, due to the pandemic, another great motivator has arisen: the home office. Remote projects were highly popular beforehand as well, but something happened in 2020. The experts who used to work in teams onsite realized that they could provide the same quality of work online, from home. This realization started a small avalanche and today many of the IT experts look exclusively for remote projects.

The IT experts realized that working for one given company could be a dead-end for their carrier. A great many developments last several years with the continuous upgrading of the given system. Software developers with a freelancer’s mindset have started to look for different projects, the kinds of jobs where they can work with interesting and new technologies.

In exchange, these IT experts had to renounce the cozy workplace environments, where progress is the project manager's responsibility and the development tasks can be performed in calmer and more static conditions.

Characteristics of Freelancing

Being a freelancer seems very attractive. Imagine you can work with the latest state-of-the-art technologies and tools…well, for an IT expert it is very good to hear. Continuously fresh solutions, continuous learning, acquiring new skills, sensible and speedy projects? That sounds really good. But what does a freelancer’s life look like in reality?

Freelancer - Bluebird blog

1. Self-Training

As a freelancer, you have to educate yourself all the time. No training wheels during your projects, you don’t know the environment, you don’t know the developers, testers, and operators who are working the project with you. You don’t even know where to get a coffee in the neighborhood.

To be able to perform your tasks correctly, you always have to be aware of the project stack, the main processes, and architectural questions, conventions, etc. For this, you have to study your new environment and be able to understand thoroughly where you ended up.

2. Devices

You will need to own the necessary devices yourself. I think that this will be the least of your problems, because a good laptop for developers is not very expensive, and also, on your computer, the settings are just the way you like them.

I also use my laptop until it dies completely because setting the configurations the way I like them takes several days.

3. Establishing and Operating Your Own Company

To be able to sign a contract, you will need a legal entity. Today, creating a company takes a day or two, but I would like to point out a few important things.

Creating the company is easy, but when it already exists there will always be something to take care of. Declaring your income, amortizing your assets, managing the bank account, invoicing, cross-checking with the accountant, etc.

I recommend this path only if you have the heart of an entrepreneur. With being a freelancer comes also the burden of managing your own company. Like it or not.

4. Creating the Environment

Creating a physical environment is essential for freelancers. In case of a remote project, you will need an office or a room where you can work uninterrupted on your project. After last years’ mandatory home office work due to the pandemic, most people realized that you cannot spend a day without your kid entering the room unexpectedly: « Come and play Daddy! » Furthermore, the time spent on projects by IT experts has skyrocketed because the interface (car, travel) between work and private life disappeared.

In case of a remote project the office has to be comfortable and well-equipped (internet, webcam, etc.) Regardless of it being a remote project, there is often a need for a consultation in person. In this case: Off you go, no matter what!

The same situation occurs when you can only perform your tasks onsite. Let’s just think about a complicated banking system or energy infrastructure. The companies are usually reluctant to give access to these kinds of systems to outsiders. Same thing with high-security projects.

Freelancer - Bluebird blog

5. Contracts, Invoicing

Naturally, a freelancer signs up for a project. The project has a starting point, an end (the deadline), a scope (tasks, precisely) and all this has a fee.

The freelancers’ job is to complete the tasks before the deadline. For completing the tasks, they receive a fee.

The fee is most often on an hourly or daily basis. The reason behind this: a fixed fee contract can only be signed between the parties if the scope of the project, the tasks to be performed are completely definite. This is especially relevant for freelancers, who often operate within less rigid frameworks.

If the end product can be defined precisely, meaning that there is a detailed requirement specification, then a fixed price agreement is an option. Of course, the risks will resurface: Is there anyone else who can affect me delivering the product on time? What if the customer changes the requirements, etc. For freelancers, this adds an extra layer of complexity, as their success often relies on clear communication and well-defined deliverables.

IT is moving towards agility. Monolith requirement systems are not needed anymore, fast delivery units are (see DevOps). As well as flexible environments for development where everything happens to satisfy customers and end-users. As a result, the requirement for IT experts and suppliers is: be flexible, adapt to the newest needs, make a system that your customers love! It is not the contract you should wave around, but the results of the project.

It is supported mostly by a similarly loose way of invoicing. That is why hourly or daily fees are recommended, particularly for freelancers, who benefit from this flexibility in billing structures.

6. Simultaneous Projects

As a freelancer, you will have the possibility to work on several projects at a time, for several customers. But only, if you have enough time and energy to completely understand several tasks at the same time, and in case you can spare enough time to complete them.

7. Schedule

In case of a remote project, your schedule is up to you. The requirements are: deliver the end product, the system documentation, a module, a microservice, or anything else.

There are a myriad of remote projects where the customer is not in the same time zone as the freelancer. As a result, it cannot be expected that your schedule fits your customer’s timetable. Most often there are no such requirements.

In case of an onsite project, you will still have your flexibility, but it could be influenced by factors such as: when will you reach others if you would like to check something? You will not have a fixed schedule either, but you will have to somewhat adapt to the project.


Frequently Asked Questions About Freelancing in IT

What does it mean to be an IT freelancer?

An IT freelancer is an independent professional who works on a project basis rather than being employed full-time by a company. Freelancers typically handle tasks as self-employed individuals or as part of their own company. Projects usually last between three and nine months, during which they complete specific assignments before moving on to the next opportunity.

Why is freelancing becoming popular in IT? 

Freelancing is growing in popularity because it offers IT professionals greater flexibility, opportunities to work with cutting-edge technologies, and competitive pay. Many experts find that traditional employment models no longer align with their needs, preferring dynamic, project-based roles that offer professional challenges and new learning opportunities.

How has remote work affected freelancing in IT? 

The rise of remote work, particularly during the COVID-19 pandemic, has significantly boosted freelancing in IT. Many professionals realized they could maintain high-quality output from home, leading to a surge in demand for remote projects. This shift also encouraged freelancers to seek flexible roles where they can balance their work and personal lives more effectively.

What are the key challenges of being an IT freelancer?

Freelancing in IT comes with several challenges, including the need for continuous self-education, managing one’s own company, and creating a suitable work environment. Freelancers must also handle their own contracts, invoicing, and schedules while maintaining high-quality output. Adapting to new technologies and environments quickly is essential for success in this role.

What legal requirements do IT freelancers need to meet? 

IT freelancers typically need to establish a legal entity, such as a sole proprietorship or limited company, to sign contracts and invoice clients. They are also responsible for managing their finances, declaring income, and collaborating with accountants to ensure compliance with local regulations.

How do freelancers handle multiple projects simultaneously?

Freelancers often have the opportunity to work on multiple projects at once, but this requires excellent time management and the ability to juggle various tasks. To succeed, freelancers must allocate sufficient time and energy to each project, ensuring they meet deadlines and maintain high standards.

What kind of environment do IT freelancers need to work effectively? 

IT freelancers need a well-equipped, distraction-free workspace, especially for remote projects. This includes reliable internet, ergonomic furniture, and tools like webcams and microphones. For onsite work, freelancers may need to travel or adapt to secure environments, such as those in banking or energy industries.

Is freelancing in IT suitable for everyone? 

Freelancing in IT is best suited for individuals who value autonomy, are comfortable with project-based work, and are willing to manage the additional responsibilities of self-employment. It’s ideal for professionals eager to work with innovative technologies and willing to adapt to new challenges and environments regularly.


Summary

A freelancer’s life is for those who (as self-employed people) would like to work on projects where they can discover the latest technologies, who are ok with not having a fixed salary (as opposed to regular employees), who are ready to execute their tasks defined in the contract on a very high level and who accept that they have to provide their own work environment (company, devices, office)

Being able to work on multiple projects simultaneously and collaborate with other IT experts to complete your tasks is just the cherry on top!

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