Tech Career Decoded #19 - Freelancing vs. permanent roles: balancing flexibility and stability

Back in January our experts predicted that tech companies would continue to hire more temp talent in 2025:

"The demand for flexible and temporary roles is increasing everywhere. When companies adopt new technologies, implement new processes, or start new projects, they often need additional resources. In these cases, temporary or consulting roles are incredibly useful. These projects often require specialised skills for a set period—six months, a year, or even longer."

FABIO ZAPATA , Executive Director Page Consulting IT - Latin America

And guess what? The growing demand for freelance tech experts lines up perfectly with more professionals wanting to be contractors. In fact, a recent study found that more than a third of tech specialists (38%) plan to become freelancers in their immediate future. But the same study revealed a near-even split between those considering contract work and those preferring to stay in permanent roles.

Contract and permanent roles will always co-exist. And the choice between the two is a matter of personal preference and your individual goals. If you've contemplated becoming a freelancer but remain uncertain, this edition of Tech Career Decoded will dive into the freelance vs. permanent work debate, exploring the benefits and trade-offs of each, to help you figure out which career path is best for you.

*While comparing "freelance" to "permanent employment," we recognise the broad spectrum of non-permanent work: temporary, contract, interim, and others, each with varying definitions globally. For this newsletter, we'll use "freelance" as a general term to represent tech professionals working without permanent contracts, for limited periods with one or more clients.

What’s driving the trend towards freelance work in tech?

Firstly, the pandemic fundamentally reshaped workforce preferences. Since then tech professionals increasingly crave greater control over their work-life balance, project selection, and working hours. Freelancing and contract work provide precisely this, offering the flexibility to build a career on your own terms and explore diverse projects across various industries.

But this trend isn't solely driven by professionals. Businesses are also adapting to the rapid pace of technological innovation. The demand for highly specialised tech skills, such as cloud computing, blockchain, AI, and cybersecurity, is skyrocketing. Instead of committing to permanent hires, many companies are turning to freelancers who can fill internal skills gaps and deliver high-quality project outcomes without long-term obligations.

Freelancing or permanent roles? 3 tech professionals share their stories

What's it really like to choose between freelance and permanent work in tech? We went straight to the source, interviewing three professionals with unique perspectives on each work model. Hear from Jimmy Elias, Freelance Creative Director Experience Design (Germany), Agata Yamashiro, Product Designer and creator of Carreira na Gringa (United Kingdom), and Carlos Andrés Torres González, Program Manager at Michael Page Colombia, as they share their experiences navigating the pros and cons of each career path.

The benefits of switching to freelancing

For many tech professionals, the rigid structure of permanent employment can feel stifling. The desire for autonomy, variety, and direct control over career trajectory often leads them to make the switch to freelancing. Jimmy Elias, a Freelance Creative Director in Experience Design, went through this firsthand:

I chose freelancing in tech because it offered the flexibility to work on diverse projects, continuously challenge myself, and take greater control of my career growth.

Jimmy's journey highlights a common catalyst: the yearning to break free from the constraints of a single career path: "Before becoming a freelancer, I spent several years in permanent roles at agencies and consultancy firms... During this time, I realised that I thrived on solving a wide range of challenges in tech across industries rather than being confined to a single role."

This realisation pushed him towards a career where he could apply his “expertise more dynamically while continuously learning and evolving." 

"Freelancing has had and is still having a profound impact on my career growth, opening up opportunities that I wouldn’t have encountered in a traditional role." This includes working with a diverse clientele, from startups to global corporations, and expanding his expertise into areas like teaching, public speaking, and UX training.

Challenges of a freelance career 

However, the freelance path is not without its drawbacks: 

Freelancing has taught me how to manage irregular income and plan ahead financially, which has made me much more resilient and resourceful. Building a client base takes effort, but it’s also rewarding because I get to work on projects that align with my passions and expertise. I’ve learned to be disciplined and create my own routines to stay productive. Of course, freelancing doesn’t come with the benefits of a permanent role, like paid vacation or health insurance, but it’s pushed me to be proactive and take control of my career. Working independently can feel isolating at times, but it’s also motivated me to connect with others through networking and collaboration.

Additionally, skills training in a freelance environment differs significantly from structured corporate training. “Upskilling and staying competitive as a freelancer is definitely different from being in a permanent role, but I wouldn’t say it’s harder, it’s just more self-driven. As a freelancer, you have to take full ownership of your growth. This has actually been a positive thing because it pushes me to stay curious, proactive, and constantly on the lookout for new trends or tools in our industry generally and in our digital sphere specifically.”

For those considering the leap to freelancing, Jimmy offers the following advice:  

First and foremost, be sure you can embrace uncertainty. Freelancing comes with ups and downs: irregular income, fluctuating workloads, or unexpected changes. Being adaptable will help you navigate these challenges effectively. Another key aspect is understanding that freelancing requires constant self-promotion. You’ll need to market yourself, build your personal brand, and network consistently to secure opportunities.

More ownership and career advancement: the appeal of permanent roles in tech

Many tech professionals find fulfillment and career growth within the structure of permanent employment. Product Designer Agata Yamashiro returned to full-time employment after being a freelancer for over three years. One reason for this was due to her desire for more involvement and a greater sense of ownership.

Based on my experiences, having a permanent job in tech increases my chances of having more influence within a team on strategic decisions. Like it or not, it makes it easier to participate in the entire product development cycle, from the discovery process to delivery, end-to-end, and so I can also see the impact of my work up close.

Career progression was another significant factor for Agata: "It's usually easier if you're in a company that has career progression and development opportunities, as well as mentors to help you along the way. In fact, mentors have been key to my professional growth." 

Carlos Andrés Torres González, a Program Manager at Michael Page Colombia, echoes this sentiment, emphasising the importance of a positive work environment and growth opportunities. He also adds, "in a permanent role, you also gain a deeper understanding of the business, you have the chance to make more impactful contributions and stand out. This is something that can be more challenging in freelance work, where projects tend to be short-term and highly specific.” 

While acknowledging the advantages of freelancing, such as flexible hours and diverse projects, Carlos stresses that many of these benefits can also be found in permanent roles. "Freelancing certainly has its advantages, such as flexible hours, control over your schedule (which can provide a better work-life balance), exposure to a variety of projects and clients, and the potential to diversify your income. However, I believe that depending on the type of company you work for, you can find many of these benefits in a permanent IT role."  

Advice for switching from freelancing to a permanent role 

For those transitioning from freelancing to a permanent role, Agata recommends making a “list of your professional and personal priorities. For instance, maybe you want a structured professional growth programme, or more work-life balance”. She also suggests “researching the tech market, new work methodologies, and constantly updating your portfolio." 

According to Carlos, if you’re thinking about transitioning from freelancing to a permanent tech role, you should be prepared for a shift in financial structure: “You will move from variable income to a fixed salary, but in return, you gain job stability. Instead of constantly onboarding new clients who come and go, you’ll have the chance to build long-term relationships with key stakeholders and truly understand their business needs, which can be very rewarding.”

Finally, remember that careers are not set in stone. Today you might be freelancing, tomorrow you might be in a permanent role, and later you could go back to freelancing. It’s all about adapting to what works best for you at different stages of your career.

It's clear that there's no single "right" path; the ideal choice between freelancing and permanent work depends entirely on your individual ambitions and work preferences. While freelancing offers more flexibility and varied projects, permanent roles can provide stability, structured career growth, and deeper involvement in a company's success.

Global perspectives on freelance vs. permanent tech roles

We surveyed our Michael Page experts from around the globe to get insights on the state of freelancing in their regions and whether tech companies prefer to hire freelance or full-time talent.

On companies hiring freelancers vs. full-time employees

Companies prefer to keep certain key positions in-house, especially those requiring long-term continuity and strategic impact. This typically applies to C-level roles, finance, operations, and general management. However, depending on a company’s maturity, some of these functions may be outsourced to specialised consultancies or high-level freelancers. 

The primary reason companies hire freelancers is to access highly specialised talent in specific areas while maintaining flexibility in their cost structure. It’s not just about cost reduction but cost optimisation—freelancers allow businesses to scale projects quickly, innovate without committing internal resources, and adapt to market changes more effectively.

Pancho Maluenda Draper , Senior Executive Manager, Michael Page Spain

In Mexico, employers generally prefer hiring permanent employees as having in-house technology professionals allows them to develop their talent over time, fostering a stronger sense of belonging to the company, its values, and its culture. Additionally, these professionals gain expertise in the company's business processes, which helps them optimise operations through technology.

Ignacio Casillas Orozco, Technology Director, Michael Page Mexico

On the growth of freelancing

“Since the pandemic, more and more companies are choosing to carry out their technology projects with freelance professionals, in an attempt to reduce hiring costs. Professionals are embracing the growth of freelance projects, seeing the advantage of working 100% remotely and having the flexibility to take on multiple projects simultaneously with different companies—effectively increasing their earnings without significantly increasing their working hours.” 

 “In Spain, one of the key drivers behind the shift towards project-based work (freelance, contracting, interim) is the autonomy professionals seek, along with the ability to work remotely while still delivering equal or greater value than if they were in the client’s office. For many tech professionals, the appeal also lies in working on short-term projects where they can quickly see results, take on new challenges, earn higher income, gain diverse experience, and continuously develop their skills.” 

”We're seeing a growing preference for flexible arrangements in Japan's tech sector. While permanent roles remain dominant, freelance and contract work is increasingly attractive to professionals seeking better work-life balance, defined project scopes, and competitive compensation. Junior talent often strategically uses project-based roles to explore different technologies before committing to specific career paths. Gen Z specifically demonstrates greater openness to flexible work models, balancing traditional values with contemporary priorities. Work-life integration, personal development, and continuous learning now factor equally in their career decisions alongside stability.” 

Have you made the switch from a permanent role to freelancing, or vice versa? What advice would you give to people considering a more flexible career path in freelancing? Or do you prefer the stability and growth opportunities offered by fixed employment? Join the conversation and let us know in the comments!  

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Thanks for reading!

The Michael Page Technology team