Freelancer vs. Agency vs. In-house Team: Which is Right for Building Your App?

Building or scaling an app is a big thing for a business. It’s not just the expense, although that really does have to be a major consideration. It’s also the potential impact it can have on your business, because a poorly designed or poorly performing app never looks good. It doesn’t matter what you’re doing, launching an MVP, modernising a legacy product, or planning a Ruby on Rails upgrade, the decision over who should build and maintain your app is still a big one.

Freelancers are appealingly flexible and affordable, but can they be relied upon for the longer term? Building an in-house team gives you complete control, but the time and expense involved can be prohibitive. While dev agencies can seem… impersonal.  It’s not an easy decision, and there is no single “right” decision. The best thing you can do is weigh up the pros, cons, and costs of each model so you can assess which best suits your business. And that’s what we’re going to get you started with in this article.

Key takeaways

• Freelancers are cost-effective for short-term or low-risk work, but can be risky for long-term maintenance and upgrades.
• In-house teams provide control and alignment but require significant investment and ongoing management.
• Agencies offer a balanced approach: a full team, proven processes, and predictable outcomes.
• Long-term success depends on more than building features: maintenance, support, and upgrades are essential.
• Choosing the right model early can save significant time, money, and stress later.

What You Need to Know When Deciding Who Should Build Your Company’s App

Option 1: Freelancers

Freelancers are often the first choice for startups and small businesses when it comes to app building. And there are many good reasons for this.

Pros of hiring a freelancer

Lower upfront cost

Freelancers often seem like the “cheap” option, but that doesn’t usually mean a lack of skill. It mostly means that they have fewer overheads, so don’t need to charge as much. This can make freelancers a really useful resource for early-stage projects, prototypes, or short-term work.

Flexibility

The beauty of working with a freelancer is that you have no long-term commitments; you only have to work with them until the job is done.

Direct communication

You’re working directly with the person who writes the code. That not only makes things faster but clearer, which reduces miscommunication and mistakes while reducing decision-making time.

Cons of hiring a freelancer

Single point of failure

When you rely on a single person, the project depends on them and their availability. So, if they’re ill, have family problems, or simply lose interest in the job, you can find yourself stuck, with a stalled project, and no recourse other than finding someone else who’s willing to take on a half-finished job.

Limited skill coverage

Freelance developers are often jacks of all trades, but that can also make them master of none. So, you might not get the standard of work you need across all the areas of your app – design, backend architecture, DevOps, testing, and security may not all be covered.

Inconsistent maintenance and support

Many freelancers prefer building new features over providing long-term Ruby on Rails maintenance or ongoing support.

Risk during upgrades

A complex Ruby on Rails upgrade requires deep framework knowledge and testing. If a freelancer isn’t highly experienced, you can find yourself with an app that later develops expensive security or performance issues.

Typical costs

Hourly rates: £25–£100+ depending on experience and location

Best for: Small features, MVPs, short-term tasks

Option 2: In-house development team

An in-house team offers businesses control and guarantees alignment, but it comes with significant responsibility and cost.

Pros of an in-house team

Deep product knowledge

Your developers live and breathe your product, which can lead to better long-term decisions.

Full control

You control priorities, timelines, and internal processes.

Strong alignment with business goals

In-house teams are closely integrated with stakeholders and company culture.

Cons of an in-house team

High cost

Salaries, benefits, taxes, equipment, office space, and training add up quickly.

Hiring challenges

If you already have experienced Ruby on Rails developers in-house, you wouldn’t be undergoing this process. Recruitment can be expensive and time-consuming, which will add to the overall time it will take for your app to be completed.

Skill gaps

You may need backend developers, frontend specialists, QA engineers, DevOps, and a technical lead. Filling all these roles internally is expensive.

Scaling issues

An in-house team entirely makes sense if you have multiple, ongoing projects and a consistent workload. But for a one-off project or multiple projects with fluctuating workloads, if can be hard to get the right amount of manpower, without overpaying for idle capacity or struggling to deliver on time.

Typical costs

Annual cost per developer: $47,000–$75,000+ (often more in major markets)

Best for: Large companies with stable, long-term development needs

Option 3: Development agency

Working with a development agency gives you flexibility. It provides access to an established structure, expertise, and the ability to scale when and where you need it. It also provides reliability without the expense of building everything in-house.

Pros of working with an agency

Access to a full team

Agencies provide backend and frontend developers, QA, DevOps, and project management, without the need for you to hire each role individually.

Proven processes

It’s understating it a little, but established agencies know what they’re doing. They use trusted workflows for planning, development, testing, and deployment. They won’t be experimenting on your project, or learning as they go along. Which means that some of the risk is removed from your project.

Expertise in maintenance and upgrades

A strong agency doesn’t just build apps; they specialise in Ruby on Rails services, including Ruby on Rails upgrades, performance optimisation, and long-term support.

Scalability

You can scale resources up or down based on your needs, without long-term hiring commitments.

Reduced risk

If one developer is unavailable, another steps in. Knowledge is shared across the team.

Cons of working with an agency

Higher upfront cost than freelancers

Agencies cost more than individual contractors, though less than a full in-house team.

Less day-to-day control

You’ll work through a project manager rather than managing developers directly.

Typical costs

Monthly retainers or project-based pricing

Best for: Buinesses that want reliable delivery, long-term maintenance, and predictable outcomes

Cost Comparison at a Glance

Model	Upfront Cost	Long-term Cost	Risk Level	Best Use Case
Freelancer	Low	Medium–High	High	MVPs, small tasks
In-house	Very High	High	Medium	Large, stable teams
Agency	Medium	Predictable	Low	Growth, upgrades, support

 

Why maintenance and support matter more than you think

When building apps, many businesses only focus on building features, but maintenance and support often determine long-term success. Outdated dependencies, unpatched vulnerabilities, and neglected upgrades can:

• Increase security risks

Slow down performance

• Make future development more expensive

A planned Ruby on Rails maintenance strategy ensures your app remains stable, secure, and scalable as your business grows.

Where Foxsoft fits in

At Foxsoft, we position ourselves as long-term partners, not just builders. That means that we take a transparent approach to everything we do for our clients – including helping them decide whether our agency is right for their project. When it comes to the work, we specialise in Ruby on Rails services, including development, upgrades, maintenance, and support. So, it’s never just about shipping features, but rather reducing technical debt and long-term risk for every client.

The right app development model for your business depends on a whole range of factors, including your stage, budget, and long-term vision. So, stop and consider exactly when you need from the project – both now and in the future – before deciding which approach to take. Because the decision you make now could save you mistakes and stress in the future.

Get in touch with Foxsoft to discuss the app-building and maintenance needs of your business.