I would be surprised if the same wasn't the case here. Any half competent legal department would at least have it be part of their contract that the subcontractor can't outsource to parties with whom the contracting party is not allowed to cooperate.
But how do you verify who does the work? Contracts are nice and all, but how do you make sure they are followed?
You can put someone at your partner’s location, have a trusted third party audit them, etc. Companies don’t like to spend the money but that’s true of every safeguard against misconduct and society is almost always better off for the investment.
But how do you verify who does the work? Contracts are nice and all, but how do you make sure they are followed?