Definitions
- Referring to the practice of outsourcing work or services to another company or individual. - Talking about the process of assigning a task or project to an external party for completion. - Describing the act of delegating work to a third-party vendor or contractor.
- Referring to the practice of hiring another company or individual to complete part of a larger project. - Talking about the process of assigning a specific task or responsibility to a third-party vendor or contractor. - Describing the act of delegating a portion of work to a subcontractor for completion.
List of Similarities
- 1Both involve delegating work to an external party.
- 2Both can be used to complete a larger project.
- 3Both require establishing a contract or agreement with the third-party vendor or contractor.
- 4Both can help reduce workload and increase efficiency.
- 5Both may involve sharing confidential information or trade secrets with the external party.
What is the difference?
- 1Scope: Farmout refers to outsourcing an entire project or service, while subcontract involves hiring a third-party to complete a specific task or responsibility within a larger project.
- 2Hierarchy: Farmout implies a higher level of delegation, where the external party takes on the entire responsibility of the project or service, while subcontract involves a lower level of delegation, where the external party is responsible for a specific portion of the project.
- 3Flexibility: Farmout allows for more flexibility in terms of the scope of work and the level of involvement of the external party, while subcontract is more rigid and specific in terms of the assigned task or responsibility.
- 4Control: Farmout may involve less control over the quality and outcome of the project or service, while subcontract allows for more control over the specific task or responsibility being delegated.
- 5Usage: Farmout is less commonly used than subcontract in everyday language and is more specific to outsourcing entire projects or services.
Remember this!
Farmout and subcontract are both methods of delegating work to an external party, but they differ in scope, hierarchy, flexibility, control, and usage. Farmout refers to outsourcing an entire project or service, while subcontract involves hiring a third-party to complete a specific task or responsibility within a larger project. Farmout allows for more flexibility but may involve less control, while subcontract is more rigid but allows for more control over the specific task or responsibility being delegated.
