There are two schools of thought regarding subcontracting, particularly offshoring, regarding subcontractors. The FFIECs Information Technology Examination Handbook includes specific guidance on this point. Financial services industry requires businesses to take care in entering into contracts in which the original vendor has broad subcontracting rights. Institutions should be aware of and approve all subcontracts, the Handbook says. It’s nearly impossible to get data back from a vendor that has filed for bankruptcy protection. Relying only on due diligence conducted on the original.”]
Source: https://www.csoonline.com/article/2136568/the-trouble-with-subcontractors.html