Feeds

Sell the IT department down the river

For a higher share price?

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Companies which outsource do better than those who don't, according to research commisioned by a company that does, er, outsourcing.

Companies which outsource business processes perform better, and have higher stock market valuations, than companies which keep services in-house, according to the LogicaCMG-commissioned report.

The research looked at the share price of companies which had announced an outsourcing deal. The study found share prices one month after a deal was announced were, on average, 1.7 per cent higher for firms which had outsourced. In five out of seven sectors firms which outsource outperform those that don't. In the best cases companies saw an 11 per cent increase in share price.

LogicaCMG, which paid for the research, believes outsourcing could have an even bigger impact on share prices if companies did a better job of explaining how they intend to invest the savings acheived by outsourcing.

It predicts the total outsourcing market to be worth £370bn by 2010, an increase of 52 per cent on 2004. British companies could add as much £9.9bn to stock market valuations.

The study was carried out by the Centre for Economic and Business Research between April and June 2005. ®

Related stories

LogicaCMG goes down the Tube
Logica ups profits on falling revenues
IBM, Logica spar for £80m MoD deal

Choosing a cloud hosting partner with confidence

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.