Contracting Out
Contracting Out : A management practice, where workers are made redundant and their jobs are given out to a private contractor. This contractor would be responsible for the provision of his own labour and other resources, which he usually brings into the firm to perform the tasks. Sometimes the nature of the task is such that it is performed away from the employer's premises. The idea of contracting out is associated with the concepts of "core business" activities and "peripheral business" activities. Core business activities as the term suggests are those activities which are central to the purpose of the business. Peripheral business activities, though they facilitate and enhance core business activities, are by definition not central to the purpose of the business. What happens therefore, is that when the business embarks on a downsizing programme, its first inclination will be to shed those peripheral business activities
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