Subcontracting: meaning, definitions and examples
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subcontracting
[sʌbkɒnˈtræktɪŋ ]
Definitions
business
The practice of hiring a third party outside the company to perform specific tasks or projects on behalf of the company. Subcontracting is common in industries where certain specialized skills or equipment are required.
Synonyms
contracting out, delegating, outsourcing.
Examples of usage
- Many construction companies engage in subcontracting to handle different aspects of a project.
- Subcontracting can help companies save costs by outsourcing certain tasks.
business
To enter into a contract with a third party to carry out specific work or services that are part of a larger project or agreement. Subcontracting allows companies to focus on their core competencies while relying on external expertise for specialized tasks.
Synonyms
contract out, delegate, outsource.
Examples of usage
- The company decided to subcontract the IT support services to a specialized firm.
- We subcontracted the manufacturing of components to a factory overseas.
Interesting Facts
Etymology
- The term 'subcontracting' comes from the prefix 'sub-' meaning 'under' or 'below' and 'contract' relating to an agreement.
- Originally, the concept of subcontracting was used in construction, dating back to the 19th century, allowing main contractors to delegate specific tasks.
Business Practices
- Many large companies rely on subcontracting to enhance efficiency and expertise by outsourcing specialized tasks.
- Subcontracting can help businesses manage their workload better, especially during peak times or large projects.
Legal Aspects
- Subcontracting agreements typically include terms that protect both parties, detailing responsibilities and payments.
- In some industries, such as defense and construction, there are strict regulations governing subcontracting to maintain quality and safety.
Technology Impact
- With the rise of digital platforms, many freelance professionals can now be effectively utilized in subcontracting arrangements, broadening the talent pool.
- Cloud-based project management tools have made subcontracting more efficient, allowing for better communication and tracking of tasks.
Pros and Cons
- While subcontracting can reduce costs and improve flexibility, it can also pose risks related to quality control and communication.
- Successful subcontracting relies on clear contracts and management to ensure expectations are met.
Translations
Translations of the word "subcontracting" in other languages:
🇵🇹 subcontratação
🇮🇳 उप-ठेकेदारी
🇩🇪 Untervergabe
🇮🇩 subkontrak
🇺🇦 субпідряд
🇵🇱 podwykonawstwo
🇯🇵 下請け (shitauke)
🇫🇷 sous-traitance
🇪🇸 subcontratación
🇹🇷 taşeronluk
🇰🇷 하청 (hacheong)
🇸🇦 التعاقد من الباطن
🇨🇿 subdodávky
🇸🇰 subdodávka
🇨🇳 分包 (fēnbāo)
🇸🇮 podizvajanje
🇮🇸 undirverktaka
🇰🇿 субмердігерлік
🇬🇪 ქვემდებარე საქმის შესრულება
🇦🇿 subpodrat
🇲🇽 subcontratación