subcontracting

Hiring secondary contractors

Subcontracting is hiring another party to perform work you've been contracted to do.

A construction company might subcontract electrical work to specialists.

The practice allows businesses to take on large projects without maintaining all necessary expertise in-house: They're subcontracting the software development to a firm in Austin.

The hired party is a subcontractor.

contracts

agreement

Shared position between parties

scope · specifications · terms · invoice · payment · liability · negotiation · completion · deliverables · milestones

delegation

tasking

Allocating work to someone

handover · allocation · commissioning · entrusting · parceling · carve-out · spin-off · third-party · specialization · freelancing

parties

vendor

One who sells goods

principal · client

collaboration

coordination

Organized cooperative movement

consortium · supply-chain · liaison · alignment · interoperability · handoff · scheduling · sequencing · dependencies · interfaces

industries

construction

Process of building something

automotive · pharmaceuticals · electronics · textiles · shipbuilding · infrastructure · telecommunications · energy · logistics · engineering

efficiency

specialization

Concentrated expertise in one field

expertise · time-saving · just-in-time · workflow · turnaround · focus · bandwidth

Categories
Opposites
work execution method

subcontractingdirect labor

Workers directly making products

insourcing · vertical integration · DIY · internalization · self-supply

organizational control

subcontractingcentralized control

Authority concentrated in one body

Family

contract, contraction, contracted, contractor, contracts, contracting, contractual, contractions, subcontractor

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G