Thursday, July 07, 2005

Outsourcing may be a mixed blessing - IT Week

"The Centre for Economic and Business Research and IT services firm LogicaCMG found the share prices of firms that announced they would use outsourcers were 1.7 percent higher on average one month after the contract was made public, compared with rivals. Firms that clearly explained their strategy saw even greater increases, according to LogicaCMG UK chief executive Guy Warren. He said firms should publicise expected benefits to make the impact clear to analysts and shareholders.

But consultancy Compass suggests hidden costs of outsourcing may harm productivity and profitability in the long term."

posted by Unknown @ 3:48 AM

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