Entrepreneurship Development and Communication Skills

7.4.2.2.Disadvantages of sub-contracting

Sub-contracting also suffers from the following drawbacks:

1. Core firms depend upon sub-contractors for the supply of goods.

2. Goods produced by sub-contractors may not be up to standard.

3. Sub-contracting checks the growth of core firms.

4. Very often contractors delay in making payments to sub-contractors.