The benefits of contract work are attracting a growing number of skilled people as well as cost-conscious employers, according to London-based recruiting expert Hays.

Employees who have chosen to quit full-time jobs to go freelance swear by the advantages of flexible work hours and projects.

According to Simon Lance, managing director of Hays in China, freelancing is an attractive option for many workers with skills that are in demand. Moving from project to project allows people to be in charge of their own career, he said.

Businesses or employers are attracted by the same flexibility. It gives them a chance to quickly bring in certain skills only when they need them. They have the freedom to decide whether the freelancer will work on a particular project, to cover annual leave of a staffer or at times of peak workloads, said Lance.

For a company or a business, having the option to hire freelancers indicates the ability to budget on a project-to-project basis, and a stronger control over the budgets since the freelancers are only paid for the hours worked. Utilizing the services of a freelancer also ensures that permanent staffs are not distracted from their core work, according to Hays.

According to the World Bank, nearly 25 percent of the workforce in Italy were freelancers in 2016. This compares with 15 percent in Belgium, 12 percent in France and 11 percent in Germany.

While there are many benefits of having a flexible workforce, there are risks that businesses must be aware of before going down the freelancer route, industry experts said.

"Businesses must remember that when they are making a short-term hire, the freelancer may not be engaged with the brand and company's values like a permanent employee is. That's why, we suggest an organization treat them like any other employee and as part of the team. This ensures you'll form a positive relationship, which helps make them feel more at home in your business," said Lance.

He warned that it may also be necessary to educate permanent staff about what a freelancer's hourly rate really means.

"While a freelancer earns a higher hourly rate, he does not receive paid annual leave, sick leave or benefits."