contracting out (business) - Hutchinson encyclopedia article about contracting out (business) Printer Friendly
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contracting out (business)

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contracting out

In business, putting out to tender the provision of goods or services. During the 1980s, the British government encouraged and then forced various parts of government to contract out the provision of services such as refuse collection and street cleaning. Instead of government workers providing these services directly, any company could bid to provide the service; the company which gives the lowest price in its bid wins the contract.


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