Which is better, a contract developer or a Permanent Employee?

Anshul Sharma
Anshul Sharma, CEO & Business Head at Fluper Limited
Published on Oct 29, 2018 in App Development
that will also widen your entire perspec

There are various industries that hire workers on a contract basis and don’t absorb them in companies as permanent employees. The same thing also happens in the field of mobile app development. In fact, there are various companies who hire freelance Android app developers. But have you ever thought about the main pros and cons of such method?

Are you confused about contract job or a permanent post in a company? There are various advantages as well as disadvantages of contract as well as permanent Android application development. In the present time, various software developers don’t have any idea about the difference between being a salaried employee or a contractor.

The Changing Face of Corporate World

Due to sudden change, the corporate world is hiring mobile app developers on a contract basis. On the other hand, if we talk about regular employees, they get various benefits and perks besides the fixed salary. In current times, the market scene is becoming quite grim and companies have been forced to cut costs by restructuring their setup.

We all better know that contractors are not permanent fixtures in the company. Contractors merely sign an agreement for all kind of deals, collect their pay or leave. All this prove highly beneficial for a company as it saves a lot of unnecessary expenditure. Although mobile contractors get higher returns as compared to permanent employees and it is relatively much cheaper for a company.

Salary and compensation

The mobile application developers who are working as permanent employees are paid high, although their salary is significantly less than contractor counterparts. If the contract developer is going through contract broker or agent then he/she have to pass a share of pay to that particular agent that is involved in this procedure. Besides this, all the aspects of tax payment are also handled by the agents.

In fact, many of these agents offer small benefits to their contractors such as bonuses, perks, paid leaves etc.

There are various mobile application development companies who hire app developers via agents. All such things are also beneficial for developers as they easily find a steady stream of work.

Is contracting beneficial for Mobile App Development?

One of the biggest risks of becoming a mobile app developer is that developers do not easily find jobs. On the other hand, if you are a permanent employee, you don’t need to think about that.

Mobile Contractors are experts in one particular subject of mobile application development and this is the reason they easily get jobs. Though freelancers salary is higher than regular employees, they will probably have to wait until getting the next project.

Permanent Employment Vs Contract Mobile Development

Pros

  1. Bring money for the contractor
  2. Timings are flexible suiting both the company and the contractor.
  3. As the contractor is independent, the mobile app developer can choose a project according to his/her schedule.
  4. As the contractor is not part of the company, he/she is not involved in office bureaucracy.
  5. You can manipulate your tax amount paid at the end of each financial year. Through this, you can save a great amount in taxes.
  6. Freelancing on a contract lets you become your own boss as you can work according to your wish. In fact, you can also decide your schedule. If you are not in the mood to create, you can work another day.
  7. At the end of the day, you don’t have to report to anyone, so you can work in a relaxed manner.
  8. If you are a contractor, you are an independent identity and you don’t have to answer to anyone. This provides you the freedom between choosing your desired working hours as well as general schedule.
  9. If you want to build a formidable CV for yourself, diverse companies, as well as diverse projects, can help you a lot.
  10. You can easily build your own work experience as you have to work with different clients and that will also widen your entire perspective of mobile app development.
that will also widen your entire perspec

Cons

  1. Nowadays, IT companies are terminating employees on huge basis, so jobs are not secure in present times.
  2. Permanent employees earn less than mobile contractors.
  3. Sometimes, app developers get stuck with the same type of job profile, if they are working on the same company for a long time.
  4. Permanent employees have to face office bureaucracy.
  5. They can’t be independent during tenure in the company.
  6. As you are working on your own, you have to learn how to deal with working without a regular office environment. If you want to resolve an issue urgently, you may not receive instant help. In such circumstances, build a network of experts so that actually enter into contracting business.
  7. Being a mobile developer contractor, you will be solely responsible for finding jobs so that you can maintain a steady source of income.
  8. Until you actually establish yourself, you have to struggle a lot as well as accept client’s payments & other terms and conditions.

There is no doubt in saying mobile developer contractor has immense benefits but it also has its downfalls. Before coming to any kind of decision, you should take all the above points seriously.

Conclusion

If you want to start freelance work, you have to be financially in a comfortable position. Make sure you know the risks as it can affect dependent members of your family. If your specialism is saturated then definitely you will not receive the massive potential benefits of freelance work. Although there are various benefits of freelance work, so you should not take the decision lightly.

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About the author
Anshul SharmaCEO & Business Head at Fluper Limited

Mr. Anshul Sharma is responsible for overall Executive Operations, Pre-Sales, Technical Functioning, and Structuring of Corporation. With extensive experience of 4+ Years in Sales and Marketing, he is a deserving and competent architect to forecast a...

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