A subcontractor is an individual or (in many cases) a business that signs a contract to perform part or all of the obligations of another’s contract.
A subcontractor is a company or person whom a general contractor (or prime contractor, or main contractor) hires to perform a specific task as part of an overall project and normally pays for services provided to the project. While subcontracting often occurs in building works and in civil engineering, the range of opportunities for subcontractor is much wider and it is possible[original research?] that the greatest number of subcontractors now operate in the information technology and information sectors of the economy.
One hires subcontractors either to reduce costs or to mitigate project risks. In employing subcontractors, the general contractor hopes to receive the same or better service than the general contractor could have provided by itself, at lower overall risk.