From the course: Cost Reduction Tips - How To Cut Costs And Maximize Profits

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Are subcontractors a hidden money pit?

Are subcontractors a hidden money pit?

From the course: Cost Reduction Tips - How To Cut Costs And Maximize Profits

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Are subcontractors a hidden money pit?

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- The next cost reduction subject I just want to look at is sub-contractors. Is it cheaper to put something out to sub-contractors, and sometimes it is, but I would be really careful about sub-contracting because I think there are hidden costs and it might not really be cheaper. I think you got to be very careful about using sub-contractors on a long-term basis, so getting somebody in to do a day of training, then okay fine, why not, because you probably can't have an internal trainer who's going to be fully utilized doing training courses every day, so to get a guy in for a day, or a lady to do a training course, why not, but if you've got consultants or whole departments contracted out long-term, you might have consultants in for months or even years, or contract out a whole department, that starts to be lot of money, and I would really, really question that, and a way to save money if you got consultants or contractors, is just to cancel them. Now, they claim economies of scale…

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