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In this episode, we sit down with Keilian Knudsen, founder and co-CEO at Pangea.ai, to explore the evolution of the agency model and its challenges in today’s rapidly changing market. From their personal struggles with finding reliable engineering talent to building a global platform that connects businesses with vetted agencies, we uncover the story behind their journey. We discuss the rise of freelancers, the impact of AI on low-level engineering roles, and why team culture and communication are critical to agency success. Whether you’re a startup founder, agency owner, or just curious about the future of work, this conversation offers valuable insights and actionable takeaways. 00:00 - Intro 01:07 - Where did the idea come from for an agency? 03:19 - Market research about their problem 05:53 - Agency VS Freelancers 07:06 - Different types of clients 08:11 - 2 main reasons to engage with an Agency 10:21 - Agencies are hubs for hiring talent 11:07 - Project-based work market 13:16 - Why is team augmentation better 14:03 - The VC game has been negative about outsourcing 16:00 - What companies need to do 18:34 - Freelance workforce model 19:20 - What will the agency model look like? 20:36 - Agencies will still play a big role 21:08 - AI workflow in the industry 22:23 - Low-level engineering will struggle 23:44 - Engineering talent skyrocketed 26:02 - Will AI replace engineers 26:48 - The agency needs to help the client make the right decision 29:02 - How great agencies set themselves apart 29:26 - Team building and culture 32:18 - Communication is KEY 34:21 - Client Success 35:43 - Global market for agencies 36:12 - The US market 37:44 - Southeast Asia market 38:42 - Eastern Europe market 39:30 - Latin America market 41:19 - Western Europe market 43:15 - African market 44:27 - Middle Eastern market 46:06 - Asian market 47:54 - US and Europe are the main markets 48:29 - Billing rates of the regions 50:17 - Sri Lanka rates 51:24 - Latin America rates 52:05 - Difference between rates: Team Augmentation and Project Work 53:58 - How does Pangea work 58:40 - Partnership model 59:51 - Struggling with marketing 1:06:01 - 6 months of paid ads of a black hole 1:08:07 - How much money has Pangea helped clients earn 1:10:17 - Bussines model of Pangea 1:12:28 - Subscription-based model 1:13:02 - Percentage of success 1:14:26 - End of conversation