Piecework and Subcontracting
This write-up will showcase reasons why self-employed or business entrepreneurs have to subcontract work. The main reason for this is plenty and they bring many unique elements when it comes to flexibility and financial saving. The subcontracting practice compared to employing temporary or full-time workers is on the increase. It provides incredible ability and flexibility for employees to try different workers minus contractual commitments for long. However, just like any other business strategy, Piecework and Subcontracting has to be carried out in an intelligent manner. It is quite easy to be efficient in the while process, therefore, you have to make plans for your things win advance.
Anyone that is new to your professional service firm may be forgiven if he thinks that working for another company or another consulting firm is not tricky; the other company spend bucks on selling and marketing and do the remaining legwork while you are waiting for the work to come and bill for piecework hours you invested in. what is easier than that?
The fact is that Piecework and Subcontracting for other consultants may turn into the worst nightmare. Just with other clients where you will find gems and pills, which is also true for other firms in the sector of services. When formulating your policy for choosing whether to opt for these terms, you can use the pointers below.
The first issue to assess is if you will be equals in your partnership deal. For instance, in case you are in training and a firm doing marketing requests you to work with them to offer expertise they lack, there are chances that you will seem like an equal. You will meet with clients face to face.
However, this may be called a Cinderella account as you need to remain behind scenes and it may complicate work execution. If you have never met the client and hear things that are said in meetings, you will find what you produce in not right. Your role will just be like a subordinate to the consulting firm. There are moments when these arrangements work, for instance, you have been employed to offer geographic coverage that the primary firm cannot offer and there are boundaries, things may go wrong. This may work well if you are abroad and are offering regional input into a great project.
First of all you need to look at financial benefits of Piecework and Subcontracting. Owners of businesses have the push for cash now than ever before, therefore, saving money is crucial for survival and thriving. Subcontracting offers an opportunity for cost cutting while getting high quality work. In such cases, you may get incredible skills for a section of your costs. If you find talented freelancers that are just starting in their career, it may pay them so much money. There are very many market places, management, and network sites online for linking subcontractors and piecework employers. These places are real diamonds when looking for these opportunities.
Just take an example of designing the web to demonstrate how you can save costs by Piecework and Subcontracting. Hiring an in house web designer will cost you so many dollars for them to work in house. However, if you outsource for a subcontractor like a web design agency serving several customers at the same time, you will pay a fraction for the same job. The result will be the same in the long run but the method will be attractive financially.
Additionally, associated secondary costs with employing individuals do not exist when you use Piecework and Subcontracting. When you hire an individual directly, you will have to pay taxes to the government. When you employ a firm or subcontract an individual, taxes may not apply.
Then there exists an argument about the flexibility that comes from outsourcing. While using third party workers, it is possible to turn them on and off like a tap, just when you need them
Then there’s the argument to be made for the flexibility outsourcing brings. When you are using third party workers, you can turn them on and off like a tap, as and when you need them. This allows you to tap into a wide bank of specialist skills without long term or fixed costs. We live in a very diverse and skill rich society. By splitting up these skills into small “rentable” chunks businesses and subcontractors can both be financially better off. This model is driving the economy forward and creating new markets, opportunities and wealth.