Overview

subcontracting


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The practice of the principal suppliers of goods and services buying in some of their inputs from independent firms, rather than using employees to produce them in-house. Subcontracting may be used because the work concerned needs specialized skilled labour or equipment which the principal producer does not need full-time. It also allows more flexibility in employment, if the principal's own employees are protected by employment laws or a strong trade union.

Subjects: Human Resource Management — Economics.


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