Subcontracting

Subcontracting is a business practice where a company hires another company or individual to perform part of its work. This can happen in various industries, like construction, IT, or manufacturing. The main company, often called the general contractor, focuses on its core tasks while outsourcing specialized work to subcontractors. This allows for more efficiency, cost savings, and access to expertise. For example, a construction firm might subcontract electrical work to a specialized electrician. While the subcontractor completes the task, the main company retains overall responsibility for the project's completion and quality.