Subcontracting
Subcontracting is a business practice where a company hires another company or individual to perform specific tasks or services. This allows the primary company to focus on its core activities while leveraging the expertise of the subcontractor. Common in industries like construction and information technology, subcontracting can help manage workload and reduce costs.
The subcontractor is responsible for completing the assigned work according to the terms of the contract. This arrangement can lead to increased efficiency and flexibility, as the primary company can scale its operations without the need for permanent staff. However, it also requires careful management to ensure quality and compliance with standards.