Concepts




Subcontracting


Subcontracting refers to the hiring of an external enterprise to provide a business activity with its component elements. The hired enterprise is assumed to be more competent or efficient.



Topic

Validity of the definition

  • 1 November 2004 - 31 October 2006

Source organisation

  • EU

Production under subcontract is an activity where a contractor enterprise orders from a subcontracting enterprise products whose (primary) planning and marketing the contractor enterprise is responsible for and/or it delivers the necessary materials and supplies to the subcontractor. The subcontractor manufactures products to other enterprises according to order.

In finishing work under subcontract, an enterprise having manufactured or purchased an unfinished product orders the finishing work from a subcontracting enterprise. In such cases, the subcontractor finishes products for other enterprises according to order.
In subcontracting the contractor enterprise and the subcontractor are always different enterprises.

The production statistics of industry also include production and finishing under subcontract.



Statistics using the definition

Validity of the definition

  • 1 January 1997 - 31 December 2006

Source organisation

  • Tilastokeskus

In the index of real estate maintenance costs, subcontracting refers to maintenance services purchased from a third party.



Statistics using the definition

Validity of the definition

  • Valid until (31 December 2078)

Source organisation

  • Tilastokeskus

Jaa