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Subcontracting and partnering can be an excellent way to grow business and improve your relationships with clients.  But many professionals in the technology business do not quite understand the difference between the two concepts or how to work them into their plans for working with small businesses.

The truth is, subcontracting and partnering can improve your ability to work with clients and help you efficiently run your business .  It also frees you up for your most important business-growth activities so you have enough time to focus on important administrative, sales and marketing activities that will keep your sales funnel full of viable prospects, customers and clients.

The following 3 tips can help you better understand how to use subcontracting and partnering as you build your Information Technology service business.

Understand the Difference between Subcontracting and Partnering. There are several key ways that subcontracting differs from partnering.  With subcontracting, your client has a single point of contact with your firm.  The subcontractor primarily communicates with your firm, with only minimal direct communication with your client.  Basically, the subcontractor functions as an extension of your firm, and the client does not necessarily even have to know that some of the larger project is being farmed out.  With a subcontractor, the client gets one proposal, one contract and one invoice from your firm.  Subcontractors also get paid by your firm, not the client.  If your Information Technology service company is talking about partnering, you are working with another non-competing technology provider that is retaining its own corporate identity and presenting its own credentials to a mutual client.  The client is aware there are two or more distinct technology providers involved in the project, and your partners communicate directly with the mutual client.  The client communicates with the main contact person at all partnering computer consulting firms and gets proposals, contracts and invoices from all of them. Clarify which Party Handles which Details. With partnering and subcontracting, you need to clarify which party is handling which details of each project.  In a master contractor/subcontractor relationship, the master contractor (your Information Technology service firm) will handle most, if not all administrative and management tasks.  Unlike a partnering arrangement, you won’t need to spend a lot of time with your subcontractors reaching a common ground on whose billing and administrative procedures you will adopt.  When you are a master contractor, you call the shots.  However, whether you are working with subcontractors or partners on a project, you will still want to create a planning document that helps you define the rules of engagement and spells out individual responsibilities so everyone is always on the same page. Take Stock of the Skills You Are Retaining. Most of the time when you seek out a potential partner or subcontractor, you’re looking specifically for a certain skill set.  After all, you’re trying to enhance your own offering so you can best serve your clients’ needs.  For example, if client of yours needs a relational database designed to track wedding bookings for their catering business and this is not a skill you have in house, you will probably be looking for a subcontractor with expertise in the appropriate database platform and front-end design.  Make sure as you engage with a new subcontractor or partner that you get an idea of his/her baseline level of knowledge on a variety of products and platforms beyond his/her specialty.  You can create a skills inventory worksheet that you use with all your subcontractors and partners to collect information efficiently and consistently.