Let’s first take a step back and explain exactly what subcontracting is. When one company hires a third party to perform a specific task within a project, this is called subcontracting. A third party can also be subcontracted to complete the entire project.
For those of you not familiar with the process, you may be asking yourself, “Why would anyone subcontract business to another design or development agency?” It is actually an extremely common practice and for those agencies that have found a successful method of subcontracting, it can be key to growing their Joomla! business.
There are a few reasons companies subcontract other companies to work on Joomla! projects.
- Leverage Other’s Knowledge to Increase Service Offering:
Unless you are a big agency with many full time employees, it’s nearly impossible to offer and be an expert in all Joomla! web services; custom extension development, custom templates, mobile sites, ecommerce, etc.
However, by surrounding yourself with talented and reliable subcontractors who are experts in those areas, you can then expand your product offering and give your clients the complete experience. When a project comes in that is outside the scope of what you’re capable of, simply subcontract another quality agency to help you.
- Increase Revenue By Taking on More Projects:
There are only so many hours in the day and the only way to increase your work capacity is to bring in more labor. But for many Joomla! agencies, they aren’t quite at the point to hire a full-time employee.
By having a network of quality subcontractors, you can take on more projects and simply delegate tasks to the company you subcontracted. To do this successfully, you do need strong project management skills which is a beast in itself, however, if managed effectively, subcontracting can greatly increase your production potential. This in-turn increase your sales potential.
- Refocus Your Time Towards Growing Your Business:
Speaking from experience, as a business owner it can be very easy to get stuck doing the “day-to-day” tasks associated with the product or service you offer. However, your job as a business owner is also the administrator side of the business such as financials, operations, marketing, sales, etc.
By hiring a subcontractor to help with the production side of the business, this will free up your time so you can focus on the more important business operations and continue to grow your business.
Now, to set the record straight, subcontracting is not necessarily the answer for growing your Joomla! business. There are also many downsides to subcontracting work to their parties. Some of these downsides include:
- Higher Project Labor Expenses:
There are higher expenses associated with hiring subcontractors and typically the better subcontractor, the higher the hourly rate. It is important that the subcontractor quote, your labor and the project bid are strategically formulated to ensure a healthy profit margin.
- Loss of Project Control and Communication:
If you are working with subcontractors in different time zones and especially in other countries, communication can be very difficult because your work hours may not exactly match up. This can also cause delays in projects because of the lag in communication between time zones. Additionally, when a subcontractor is working on a project you cannot control the project like you can when it’s being produced in-house which can lead to some serious problems.
- Misunderstandings and Missed Deadlines:
It is very important to get everything in writing and describe all expectations up front before getting a quote from subcontractor so there are no misunderstandings or surprises. This includes the expected deadline and the consequences if this deadline is not met.
- Not All Subcontractors Do Good Work and Are Ethical:
One of the most important things to keep in mind when subcontracting a project is to whom you are subcontracting. The subcontractor will be a reflection of your company and thus it’s really important to find a subcontractor that holds your same core values, produces quality work and is reliable and meets deadlines. This may cost you more money, however, it is well worth spending a little more to work with a quality subcontractor who will keep you and your clients happy.
Subcontracting can be the key to growing your Joomla! business, expanding your service offering and taking your business to a new level. These are just a few of the things to consider while looking into Joomla! subcontracting and it is important that you take your time, do not hire based on who gives you the best price and find a good subcontractor that you can feel comfortable with and trust in their work.
What are your thoughts?