subcontracting

subcontracting
Gen Mgt, Ops
the delegation to a third party of some, or all, of the work that one has contracted to do. Subcontracting usually occurs where the contracted work, for example, the construction of a building, requires a variety of skills. Responsibility for the fulfillment of the original contract remains with the original contracting party. Where the fulfillment of a contract depends on the skills of the person who has entered into the contract, for example, in the painting of a portrait, then the work cannot be subcontracted to a third party. The term subcontracting is sometimes used to describe outsourcing arrangements.

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