03 Mar 2010

How Subcontracting Works

Once upon a time, way back in the ’90s, there was a government cost reduction initiative with a budget in the millions.

The organisation managing it hired a large IT company to handle the web site (the key part of the initiative) for hundreds of thousands of pounds.

The large IT company hired a medium-sized web development firm to create and host the site for tens of thousands of pounds.

The medium-sized web development firm hired a fresh-faced young(ish) web developer to produce the design, HTML templates, and some of the pages for a few hundred pounds.