Outsourcing link to share price

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.