Freelancer
An independent contractor an agency hires on a flexible, per-project basis to add skills or capacity without a permanent hire.
For example, an agency keeps a roster of trusted freelance writers and developers it calls on when projects spike. It scales up for a big launch and back down afterwards, paying only for the work without carrying the fixed cost between projects.
Why it matters to your firm: freelancers give an agency elastic capacity - a way to take on more work or specialist skills without the risk of a full-time salary. Used well they protect margin and flexibility; the trade-off is managing quality, availability and confidentiality across people who are not on the team full time.
- Relying on a freelancer with no backup.
- No clear contract on IP and confidentiality.
- Misclassifying a freelancer who is really an employee.