Outsourcing in the Construction Industry

Outsourcing, otherwise known as contracting out, is an important part of of the construction industry. Many businesses inside the industry thrive purely based upon contract work they get referred to them by other businesses, including businesses which are set up exclusively to be used for that purpose. This state allows for much greater freedom in the sector, as small groups can still find success, and expertise can be developed in specific areas, without the need for a business which is ‘too big to fail’, and which can leave thousands of people unemployed when it collapses.

While it is certainly the case that there are some benefits to the current system, there are also some drawbacks. Chief among these is the price. The price of construction at its base level is already quite high, particularly when it is a high skills project, or the materials are of a high and expensive standard, but when you add a number of different organisations to the supply line who take their own fee then it can result in inflated prices.