What is a subcontractor in the context of R&D?

A subcontractor is a business or individual engaged by a company to carry out specific work as a component of a larger project. In the context of R&D, subcontractors are brought on board to perform specific services related to the R&D project when there is a lack of in-house expertise to handle it. They are usually specialists in their respective fields.

Payments to subcontractors are typically made directly, without involving a third-party staffing agency.