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Push out accountability and compliance issues to the contractor.

In a state like NY, workers compensation costs for jobs with ladders are really high, for example. Contracting it out contains the cost.

They also turn capex into opex. If you pay the contractor to dig telephone poles as a service, you don’t spend capex on digging equipment.

Presumably the cost is still passed along since the subcontractor needs insurance for their workers.

If there is a liability that not covered by the insurance the subcontractor can just go bankrupt. AT&T wants to protect their assets.

NY state doesn't let anyone go without paying for worker's comp. I run a company with remote developers who sit at a desk and I am still forced to pay it. Also, contractee will require contractor to have insurance so they can sue them if needed.

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