8 Reasons Why Subcontracting May Be Right for Your Business


Subcontracting is the practice of hiring outside of your company to perform tasks under contractual agreements.

Why would you require the help of subcontractors? No matter how strong your team is, there are times when they may not have the necessary skill set to get a job done. And if you have a job that’s far too complex, you may need to hire extra hands. Your business may also require the help of a subcontractor for projects that need the technical expertise that no one in your in-house team possesses.

Here are eight great reasons why subcontracting may be precisely what your business needs:

  • Cost Effective


Large projects are often seasonal or occur sporadically throughout the year. While it’s great to be prepared for them, hiring permanent employees means having to pay their salaries year-round, even during your slowest months. The savvy thing to do is hire just enough full-time employees to meet the needs for most of the year and subcontracting when the need arises.

  • More Flexibility


There’s a lot of commitment involved when hiring permanent staff. When they don’t perform well, you need to choose between removing them or working towards improving them. And even when you would instead fire them to save you the trouble, you need to have legal cause to do so. With subcontractors, on the other hand, there’s no long-term commitment, and you can end the relationship once the task is over.

  • Access to Specialized Skills


Access to the expertise of subcontractors is perhaps one of the biggest perks of subcontracting. Depending on your industry, you may need to take on a project that demands specialized skills. For example, there’s no need to hire an in-house legal advisor, engineer, photographer, web developer, or digital artist. You have to find a subcontractor with those skills and pay them per project.

  • Ensured Quality


Because you subcontract experts in their fields, you are guaranteed product and service quality that meet your criteria, budget, and expectations. There are also some jobs that require specialized tools and equipment; some of which are very expensive. Rather than buy your own, the subcontractor will save you the trouble and the money by bringing in their equipment.

  • Meet Deadlines


Whether you’re subcontracting because you lack the workforce to complete a massive project or need someone with a unique skill, subcontracting makes it easier for you to meet deadlines. Trying to accomplish a significant plan when you’re undermanned or lack the right experience means spending much longer to get the job done.

  • Increased Productivity


Instead of focusing on business growth, you and your people may find yourselves bogged down by paperwork or other tedious tasks. Subcontracting isn’t limited to people who have specialized skills. In fact, you can hire people to perform the mundane tasks that take employees away from their value-added work.

  • Maintaining Your Good Name


Poor quality work and missed deadlines can ruin your reputation. By subcontracting, you can prevent those things from happening. Hiring the right subcontractor whenever the need arises is the best way to continue delivering the quality of work you’re known for.

  • Spreading the Risk


Relying on Subcontractors may help you spread the risk away from your Business onto another. Whenever you are relying on the services of another business you should structure your agreement, however short term it is, in a way that passes on or shares the responsibility of their work. You should consult with your Insurance Broker on ways to do and potentially lessen your own exposure from an Insurance point of view.

In short, not only will subcontracting save you money, it gives you access to specialized skills and expertise when you need it. Projects will be executed faster with fewer problems because you’ve hired someone who knows what they’re doing. And you may be able to negotiate better coverage and premiums from your Insurer as a result.