Outsourcing and subcontracting: Insights and opportunities for SMEs in a pandemic
By Timi Olubiyi
Numerous factors can make businesses decide to outsource or even engage a sub-contractor in their day-to-day activities. Results of many surveys indicate that some of the key reasons for this are the competence of the third party, cost reduction purposes, reaction to government policies, and unpredictable business climate, among others. However, the current reality of the harsh environment, the novel Coronavirus (COVID-19) pandemic, high economic pressures and the craving for business survival lay at the heart of the need for outsourcing or subcontracting as a strategy to stem the tides of these challenges.
Outsourcing is primarily a cost-efficient solution and cost-cutting measure where regular business tasks are completed by individuals or businesses outside of the firm. Subcontracting, on the other hand(subcontractors, co-contractors, or partners), is when a company hires another individual or company to complete…