How Indian Tech Firms Use BDEs to Grab Freelancer Projects

Introduction

The Indian tech industry has evolved rapidly, with companies offering solutions like CRM, HRMS, and management software. While these businesses aim to grow, many rely on an unconventional strategy—using Business Development Executives (BDEs) to acquire projects from freelancers and online marketplaces like Fiverr and Upwork. This approach helps companies maximize profits while keeping costs low, often impacting independent freelancers.

The Role of BDEs in Project Acquisition

BDEs act as intermediaries, sourcing projects and outsourcing them to freelancers at lower rates. Their workflow typically follows these steps:

1. Identifying Freelancers

BDEs search for skilled freelancers on Fiverr, Upwork, LinkedIn, and other gig platforms.

2. Bidding on Projects

Instead of bidding as a company, they analyze market demand and approach freelancers who fit the project requirements.

3. Outsourcing the Work

Freelancers are offered work at reduced prices while the company bills clients at a much higher rate.

4. Rebranding the Output

Once the project is completed, it is delivered under the company’s name, leaving freelancers uncredited.

Maximizing Profit Margins

Companies benefit from low-cost labor while maintaining a high revenue stream from their clients.

The Downside for Freelancers

While this model benefits companies, freelancers often face several challenges:

Lower Pay

Many freelancers unknowingly accept projects at undervalued rates without knowing the actual client budget.

Lack of Credit & Recognition

The final work is delivered under the company’s brand, limiting the freelancer’s portfolio growth.

Delayed Payments

Some companies use manipulative tactics, delaying or reducing payments after project completion.

Limited Career Growth

Freelancers miss direct client connections that could lead to long-term partnerships.

Why Do Companies Prefer This Model?

Several factors make this strategy attractive for Indian tech firms:

Cost Efficiency

No need for full-time hiring; freelancers work on a per-project basis.

Scalability

Companies can handle multiple projects simultaneously without increasing in-house teams.

Enhanced Client Trust

Clients assume the company handles everything internally, boosting their reputation.

How Freelancers Can Protect Themselves

To avoid exploitation, freelancers should take the following precautions:

Understand Market Rates

Research project pricing before accepting offers.

Negotiate Terms

Request fair compensation and clarify deliverables.

Insist on Contracts

Always sign an agreement to protect your interests.

Seek Direct Client Deals

Whenever possible, communicate with the client directly.

Conclusion

While leveraging BDEs to source projects benefits tech companies, freelancers need to be aware of these strategies to avoid being undervalued. By staying informed and proactive, freelancers can secure better opportunities and ensure fair pay for their skills.