outsourcing, share, price
Outsourcing link to share price
-
|
- Print |
- Email Page
Outsourcing can help lift a company's share price by up to 10 per cent if the commercial benefits are explained clearly to the markets, a study has found.
The research, commissioned by LogicaCMG, the IT consultancy and outsourcing services group, compared the share price of companies that had announced outsourcing deals with that of others in their sector. It found the shares of those that had contracted out part of their business activity on average performed 1.7 per cent better than their peers that kept everything in house a month after the outsourcing deal was announced.A correlation between increasing share prices and outsourcing announcements was found in five of the seven sectors covered. Share prices fell by almost 2 per cent among telecommunications companies that announced outsourcing deals against their industry benchmark.
In contrast, the shares of those that outsourced in the retail and distribution sector outperformed their peers by 10 per cent. Mark Pragnell, managing director of the Centre for Economic and Business Research, which conducted the study, said £20bn of additional shareholder value could be created if the share price performance of outsourcing companies was repeated for all publicly traded businesses.
-
|
- Print |
- Email Page
Nobody Doesn’t Like... OutsourcingSara Lee joins a growing number of companies that are sending their finance work to low-cost third parties.11 Dec 2008 | (News)
Wipro BPO to Set Up Business Shared Services Centre in Curitiba, Brazil for AmBev - the Largest Brewery Company in Latin AmericaCentre to Handle Finance & Accounting, Human Resources, Customer Services and Order Management Processes31 Oct 2008 | (News)
Accelerated Outsourcing – An Expert’s Perspective Chief Financial Officers (CFOs) and Procurement Directors are pushing to speed up and simplify the outsourcing service provider selection process in order to reduce preparation costs and gain benefits...16 Oct 2008 | (News)
ACS Extends Relationship With United Technologies Through Renewed $41 Million ContractDALLAS, Oct 06, 2008 /PRNewswire-FirstCall via COMTEX/ -- Affiliated Computer Services, Inc. (ACS) is extending its relationship with United Technologies Corp. (UTX) with a renewed finance and accounting...06 Oct 2008 | (News)
HROA Announces Details of Second Annual RPO SummitThe HROA, in conjunction with the RPO Alliance Buyers’ Group, have helped organize and plan the second annual RPO Summit. The event will be held at the Gaylord National Hotel in Washington, D.C. from...22 Sep 2008 | (News)
