Along with outsourcing, contracting and sub-contracting are two methods/techniques used for transferring certain jobs to outside agencies on contract basis. The purpose is to reduce cost and to get the routine and simple type of work done from other agencies so that time of internal will not be used for such less important as well as repetitive type of work. The practice of contracting and sub-contracting are used in production sector as well as in services sector. In building construction work, such contracting is quite common when the construction project is very big and is required to be complete within specific time limit. For example, a builder may give contract of colouring or tiling work or plumbing work to a contractor. He has to complete the work as per specification and will be paid as per amount fixed.


Contractors may operate as independent contractor, general contractor or sub­contractor.

The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

Leave a reply is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account