The use of subcontracting has become a widespread practice in medium and large companies and now extends to almost all sectors of activity.

Client companies use subcontracting to mobilise a workforce to help carry out projects, without being bound by an employment contract with the participants. In this way, they manage only variable costs and therefore have neither equipment to maintain nor personnel to pay. The outsourcing company can then refocus on its core business and strategic activities by outsourcing the rest of its activities. It is also a solution for dealing with peak periods of activity.

In the case of specialised subcontracting, it allows the client to access processes and technologies that would normally be difficult to obtain without assuming the material and logistical costs.

In the field of services, outsourcing makes it possible to bring in skills for projects that require knowledge that is not part of the company’s core business and the employees in place.

ADVANTAGES OF OUTSOURCING FOR THE SUBCONTRACTOR

The subcontractor, when things are done legally and correctly, wins on several levels:

•  He secures a satisfactory level of orders while concluding more or less long-term contracts that include certain fixed guarantees. The relationship between clients and subcontractors often evolves into a real partnership based on a solid relationship of mutual trust.
•  It saves on branding, advertising costs and the services of experienced sales people
•  They can reduce the costs of design services as agreed with the client. By not diversifying its services, the contractor can afford to limit its overheads.
•  By partnering with large companies, the Contractor is able to grow with them.

In short, when the legal framework is respected, subcontracting is a successful collaboration for both parties involved, provided that all aspects are known to avoid any unpleasant surprises.