In today’s business and economy of scale companies may face the need to subcontract part/s and/or task/s in order to keep their operations running to their optimal state and keep up with the SLA ‘Service Level Agreement’ committed to that particular project.
Inectio Ltd, offers a wide range of subcontracting services which fall in the regime of ICT and Mechatronics domain as listed below:
Why and when your Company should consider Subcontracting.
1. Adapt to Economic Cycles
It’s a well known fact that every industry has periods of both contraction and growth. By using the services of Inectio Ltd, your company is able to adapt to these varying cycles of demand. Your company can maintain much more flexibility by being able to ramp up staffing quickly without having to lay workers off when the contracts start slowing down.
2. Cost Efficient and Risk Averse
Using Inectio Ltd subcontracting services also allows your company to keep your overhead costs low. As the main contractor, your company doesn’t have to worry about hiring and staffing, employee benefits and office space for permanent workers and equipment.
3. Limit Your Capital Investments
An additional benefit of utilising subcontracting is being able to have access to capital equipment and skill upgrades without having to make a financial investment.
4. Specialised Labour Outside of Your Core Business
Your business excels at its core concepts, but perhaps your company needs help with those ancillary activities that are incredibly important, but are outside of your primary strengths. Sometimes it wouldn’t make sense to try to add that division to your business, especially when you can hire a subcontractor to take on those tasks on a needed basis only.
5. Control Costs
Large projects are notorious for having cost overruns. By using Inectio Ltd as a subcontractor and agreeing on a per project basis rather than by hour helps avoid the inevitable cost overruns that come with the majority of these types of projects.
Nearly all industries can relate to the term ‘Optimism Bias’ - This principle states that predictions about how much time is needed to complete a task are typically underestimated. When you’re paying workers by the hour, this can result in drastic cost overruns.
6. Focus on Your Strengths
You and your core team most likely have a specific set of skills and strengths. However, by using Inectio Ltd subcontracting services you can immediately expand your offering without having to employ extra staff. Your company will be able to take on larger and more specialised projects without having to bring on additional, permanent staff.
7. No Long Term Commitment
Using Inectio Ltd Subcontracting services allows your business more flexibility than if you were to hire new, permanent employees. While full-time employees, however, ending the relationship can be more complicated, can create considerable time and costs and may end in legal disputes. This means there is a good chance your company will end up paying someone’s salary even if you do not require their services anymore.
8. Fewer Legal Obligations
In the eyes of the law, subcontractors are the owners and operators of their businesses and, therefore, are not entitled to the same legal protections as employees. For employers, this means that they have fewer obligations to subcontractors than they do to their employees. In addition to the previously mentioned cost benefits, employers will not have to end payroll taxes and deductions to the government.
Is Subcontracting Right for Your Business?
Both large and small businesses often rely on subcontractors for help with short-term or specialised projects. There are many benefits that can make subcontracting your best bet, for more information drop us a line on the contact us form and we will schedule a meeting with you to discuss the way forward.