Hello there! Don’t mix it up Outsourcing and Subcontracting are totally different. Without delay, I explained Outsourcing and Subcontracting in a layman’s understanding. The basic things you will get from this article are the definition of both terms and the reasons and benefit associated with both. GOODLUCK!<\/p>\n
Please share this article on your social media handle. Together we share knowledge.<\/pre>\nDiscuss Outsourcing And Subcontracting.<\/h2>\n
OUTSOURCING<\/strong><\/h2>\n
It is the act of contracting to another company or person to do a particular task or function. Often the tasks that outsourced could be performed by the company itself, but in many cases, there are financial advantages that come from outsourcing and prominent advantage seems to be the fact that it often saves money and also allows the company to focus on more important factors.<\/p>\n
The outsourcing firms that are providing the outsourcing services are regarded as a third party or service providers. Today, many businesses still hire service providers to handle some of their business processes. The most common forms of outsourcing are information technology outsourcing.<\/p>\n
The Reasons And Benefits Associated With Outsourcing Policy Are:<\/h3>\n
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- It reduces overhead cost and raises efficiency saving.<\/li>\n
- It allows focusing on those business activities that are important and create greater value.<\/li>\n
- It ensures optimal usage of knowledge, equipment and experience of the third party.<\/li>\n
- Outsourcing reduces the risk associated with a sub-standard level of operation.<\/li>\n
- It reduces the core-activities of the company.<\/li>\n<\/ol>\n
SUBCONTRACTING<\/strong><\/h2>\n
A business of all sizes sometimes lack the resources to accomplish the tasks facing them. At other times, companies realize that they don’t have the required expertise in-house to obtain the required results. Finally, management can determine that external suppliers who specialize in a particular field can carry out work at a lower cost than internal departments.<\/p>\n
In all these cases, companies look at subcontracting as a possible option. In other words, it is the practice of assigning part of the obligation and tasks under a contract to another party known as a subcontractor. Subcontracting is commonly used in areas where complex projects are involved such as construction and information technology.<\/p>\n
The Reasons And Benefits For Subcontracting Are:-<\/h3>\n