Subcontracting applicatons in public enterprises which is one approach of outsourcing

Outsourcing have been widely utilized and become a major source for the organizations especially for the last twenty years. Outsourcing defined as using the resources of exterior firms for different activities. Subcontracting was one way of the outsourcing. In this research, we tired to explain outsourcing and subcontracting terms and effects on public enterprises productivity and cost reduction. Firstly, we provided serious definitions of Outsourcing and Subcontracting in different respects and different types and applications of outsourcing. After the definitions, we concentrate on effects of the outsourcing on public enterprises productivity and cost reduction. The data has been collected by interviewing which was the one methodology of qualitative researches. We interviewed with public officer and managers, who was employee in İzmir Public Enterprises. We chose our survey as public enterprises managers? because of importance for society. We found that, based on assessment of the chief public officer and managers, the practice of subcontracting have made a positive effect on cost reduction and productivity to public enterprises.