Glossary of Terms
OUTSOURCING - the transfer of a part of functions to another company, or the whole of a particular process, which allows to focus on the main and core functions to adapt to new technologies, improve the reliability and reputation of the market as well as reduce production costs.
INSOURCING - a kind of outsourcing, in which the contractor is a subsidiary or affiliated entity. In other words, insourcer implements absolutely all the functions of a General contractor. Such a scheme is more relevant for large holdings, especially if the subsidiaries have different shareholders.
SUBCONTRACTING (subcontracting) - one of the forms of production (industrial) outsourcing is used by industrial enterprises for the optimization of production processes, which lies in the fact that one industrial enterprise (contractor) places on another company(subcontractor) the order for developing, manufacturing of some products or the performance of technological processes in accordance with the requirements of the customer, allowing the company-contractor to build a more effective and efficient organizational structure of production.
AUTSERFING - the transfer of functions of the enterprise to other persons who are highly qualified and competent in the matter.
OUTSTAFFING - conclusion of an employee of the state of the enterprise and registration him in the company's- provider staff, while the employee continues to work at the same workplace and perform his former duties, but the company-provider of the services (outstaffer) performs to him the duties of the employer.