Subcontracting can reduce your costs by:

1. 1. Sharing the burden of labor and material expenses
2. 2. Allowing specialization in certain tasks
3. 3. Taking advantage of economies of scale
4. 4. Offsetting peaks and troughs in demand
5. 5. Minimizing fixed overhead costs
6. 6. Increasing efficiency and productivity
7. 7. Accessing specialized equipment and technology.