Results of many surveys indicate that some of the key reasons for this are the competence of the third party, cost reduction purposes, reaction to government policies, and unpredictable business climate, among others. However, the current reality of the harsh environment, the novel Coronavirus pandemic, high economic pressures, and the craving for business survival lay at the heart of the need for outsourcing or subcontracting as a strategy to stem the tides of these challenges.
Nevertheless, whether the consequences for subcontracting or outsourcing are good or bad, lots of surveys conducted in recent decade have shown that the practice improves business profitability and drastically reduces the cost of doing business. However, much is still desirable in the area of regulations, engagement contracts, protection, and formality by government and policy makers.