Historically, subcontracting is to relocate activities in another country. The call centers are the first to be affected by this subcontracting phenomenon. In the 1980s, the practice began to be applied to the field of information technologies (TI). Companies that do not have internal skills rely on the management of their information system to an ESN as part of an outsourcing contract.

Today, the fields of application of subcontracting have extended to customer relations, accounting, human resources management or even commercial activities. More and more positions justify the evaluation of the convenience of a service agreement instead of a employment contract.

What is subcontracting?

Subcontracting or subcontracting consists in trusting part of a commercial function to an external service provider. Subcontracting is a strategic option at the time of the creation or restructuring of the company: the function is essential, but does not deserve to mobilize internally human skills or recruit.

From an economic point of view, an external professional does a job on behalf of the company, the affected human resources do not count on their workforce and the material resources used do not fall into their assets. The company, with a view to the results, creates value without having the media. Subcontracting is a way of focusing on its main business while reducing operating expenses to gain profitability. From a legal point of view, the company prefers a service contract for a employment contract, the contracting parties that enjoy greater freedom.

What are the advantages and disadvantages of subcontracting?

Outsourcing benefits

Subcontracting an activity to an external service provider is a key decision in the corporate strategy. Companies that outsource part of their processes do so mainly for the following reasons:

  • Benefit from a cost economy in salaries and social positions : This argument is particularly valid when the subcontracting is accompanied by a relocation, the rates billed by the external partner are often aligned in the cost generated by an employee. However, using a service provider that works in its own offices, the company saves in the work space.
  • Focus on the main activity : For example, a company, which decides to focus on the development of new products, will trust its digital marketing strategy to a specialized agency. She does not bother the recruitment of ad hoc skills and does not invest in the necessary tools. This simplification of the processes particularly attracts Vse and SME that wish to preserve the moderate scope of their structure.
  • Gain flexibility : The company modulates its service contract according to your needs. Pierre Veltz, French engineer, sociologist and economist, highlights this strong point by remembering that it is easier to separate from a supplier or a service provider than to fire an employee.
  • Take advantage of a qualitative service : Unlike the employee, long -term insurance as part of a employment contract, the service provider must constantly demonstrate. Therefore, it can offer the company a difficult execution time and an optimal work quality. For example, in France, 49 % of self -employed workers decide to acquire and develop new skills to meet customer needs.

The risks of subcontracting

To take the advantages of subcontracting, without subjecting the risks, two aspects prove to be particularly strategic: the choice of the partner, on the one hand, the drafting of the service contract for the other.

As part of certain subcontracted services, the company gives access to confidential data. It must ensure that this transfer of information is insured, especially because the service provider is not subject to an exclusivity clause. That is why it is advisable to establish a service contract.

Unlike the employment contract, the service contract does not create any subordination link. Therefore, the degree of control is lower, and this lack of control can be difficult to handle. However, it makes it possible to frame the service.

What activities can be subcontract?

All activities that do not represent the main business of companies can subcontract. It can be a matter of using a cleaning and maintenance company for the facilities, trusting the delivery service to a specialized company, subcontracting certain administrative aspects (accounting, secretaries, human resources) and legal.

At the same time, companies can also decide to outsource activities with higher added value in the event that they do not have the means to provide long -term functions or recruits.

For example, at the time of launching an activity, if the business creator does not have time or skills to take care of press relationships, sales, content creation or community management, subcontracting is an effective solution to overcome this situation.

CRM advantages in an outsourcing approach

Improve the management of service providers

Traditionally, CRM software is used to administer interactions with customers, but they can also play a key role in suppliers management.

As part of an outsourcing approach, CRM offers a centralized space to collaborate with suppliers. It allows companies to group and use the information collected during exchanges. In this way, they manage to identify opportunities to strengthen these associations.

Facilitate communication between internal and external equipment

Establishing an efficient communication process is essential to effectively coordinate commercial activities. Here, CRM software can serve as a unique platform where internal equipment and external suppliers (agencies, self -employed workers) exchange real -time information.

In general, CRM software offers integrated communication characteristics, such as instant messages and online collaboration, allowing information to harmonize, avoid knowledge leaks and guarantee the fluidity of the processes.

In summary, the CRM software provides all equipment with the characteristics that accompany them to achieve the objectives. For example, as part of the subcontracting of the sales force, a CRM allows, among other things, administering the sales portfolio, automating commercial activities or benefiting from sales information.

Follow the activities and performance of service providers

As indicated above, subcontracting can ask questions in terms of service control and supplier monitoring. In this context, the use of CRM software can be an important asset.

By integrating the performance data of service providers directly into the CRM, companies can benefit from an overview thanks to personalized reports, analysis and panels, which facilitates strategic decisions to optimize collaboration with suppliers.

To go further, discover Hubspot CRM and get a complete and real visibility of your sales channel.