Outsourcing Dilemma: The Search for Competitiveness, The

Use of sub-contractors

In the early stages of their outsourcing experience, clients tend to assume that the chosen service provider will do all the work to be transferred. However, in practice, sub-contracting plays an important part in a significant number of contracts and has done so since the early days of IT outsourcing. Consequently the sub-contractor issue is very likely to play a part in most arrangements at some stage.

Often the service providers will introduce the subject in a way that suggests that the functions or services to be dealt with on a sub-contracting basis are all non-critical. It may be argued that this is a perfectly reasonable opening ’sales’ gambit even if they have every intention of eventually sub-contracting elements ...