Domestic system- putting out system -workshop system

1. -Raghav

2.  The putting out system is a means of subcontracting work.
 It is also known as Domestic System, workshop System,
Outsourcing system.
 The work is contracted by a central agent to sub contractor who
complete the work in offsite facilities, either in their own
homes or workshops with multiple craftmen’s.
 It was used by English and American Textile industries , in Shoe
making , Making parts for small firearms – from industrial
revolution until the Mid of 19th Century.
 Invention of Sewing Machines in 1846, System lingered on for
making ready made Men’s Clothing.

3.  The Domestic system was suited to pre urban times because
workers did not have to travel from home to work which was
quite impracticable due to the state of roads & footpaths and
Members of household spent many hours in farms or household
tasks.
 The development of this trend is often Considered to be a form
of Proto-Industrialization and remained prominent unitill the
industrial revolution of 19th century.
 In Business ,Outsourcing is contracting out of a business
process to third party .
 The term “outsourcing “ became popular in United States near
the turn of 21st Century.

4.  Companies primarily outsource to avoid certain cost :
 Peripheral or non core Business Expense
 High taxes
 Excessive Government Regulations.
 Production and Labor Cost

5.  1. Wide Range of Services
 2. Reasonable Prices
 3. Experienced Workers
 4. Great Customer Support
 5. Complete Disclosure

6. ANY QUERIES ?