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What is the Difference of Subcontracting and Outsourcing - Business Success - Miami, FL - YouTube
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In this video,
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I'm going to show you the difference between subcontracting and outsourcing
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and when each is appropriate for your local business.
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These two terms get a lot of use and many small
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business owners don't see the difference.
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We'll explore this together right after this.
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When it comes to Business Growth,
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local small businesses have two primary options,
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subcontracting or outsourcing.
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While both have their benefits,
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there are distinct differences between the two that business owners should
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be aware of before making a decision.
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In this video blog,
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we'll explore those differences and help you decide which option is
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best for your business.
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To start let's define each term.
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Subcontracting is when a local business contracts with another local business
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to complete a specific task or project,
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usually outside of the scope or expertise of the business.
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Outsourcing, on the other hand,
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is when a local business contracts with another business local or
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not to take over certain tasks in the business.
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These two terms get a bit fuzzy because they are often
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used out of context.
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For our purposes,
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we will use these definitions to make the distinctions between subcontracting
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and outsourcing clear.
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Now that we have a working definition for each term,
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let's explore some of the key differences between them.
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The first key difference is in the type of work that
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is contracted out.
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When local businesses,
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subcontract, it is usually for a specific project with a defined
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scope and timeline.
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Outsourcing, however is often used for ongoing tasks or those that
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are more general in nature.
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The second key difference is in who local businesses contract with
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to complete the work.
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When subcontracting local businesses typically contract with other local businesses that
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they have a relationship with,
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or that come highly recommended.
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This allows for better communication and collaboration since there is usually
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a personal connection between the two parties.
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Outsourcing on the other hand,
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is local businesses contracting with businesses that are both local and
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not that they may have no previous relationship with.
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The third key difference has to do with cost.
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When local businesses,
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subcontract, they are usually able to negotiate a lower rate since
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they are working with another local business.
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Outsourcing often comes with a higher cost since businesses are contracting
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with an outside company that may charge more for their services.
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Now that we've explored some of the key differences between subcontracting
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and outsourcing,
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let's look at when each option is appropriate for your local
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business. Subcontracting is typically best for short-term projects or those with
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a defined scope and timeline.
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It is also a good option when local businesses need to
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contract with another local business that they have a relationship with,
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or that come highly recommended.
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Outsourcing is often best for ongoing tasks or those that are
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more general in nature.
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It is also a good option when local businesses need to
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contract with a business that they don't have a relationship with
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and that may be located outside of the area.
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I hope this video has helped you understand the difference between
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subcontracting and outsourcing and when each option is appropriate for your
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local business.
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Would you like to discover more about this and other topics
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important to business success and business growth?
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Yes. Great.
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Then there are a few things that you need to do
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right now.
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First off like this video that lets me know that you
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are interested in this topic so that I'll make more videos
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Next, please leave a comment and let me know any questions
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you have,
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any ideas you have around what I've shared,
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whether you liked,
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or didn't like the video,
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just leave me a comment.
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And finally click the link in the description to sign up
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And they're a great opportunity to learn more about how to
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