IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-540-88851-2_9.html
   My bibliography  Save this book chapter

The Effects of Outsourcing Announcements on Market Values of Swiss Firms: An Event Study

In: Information Systems Outsourcing

Author

Listed:
  • Fabian S. Willi
  • Gerhard F. Knolmayer

    (University of Bern)

Abstract

The potential benefits of IT outsourcing are discussed very controversially. For determining the cost effects, cost data for providing the IT services internally must be available. However, this data is often not disposable in the necessary level of detail. For instance, the IT costs emerging in the business departments are typically not well documented. Furthermore, the value propositions of outsourced IT services such as higher quality customer service, streamlined business processes, and better and earlier information about IT innovations are difficult to quantify. A main paradigm of economists is that efficient markets provide correct valuations. Therefore, it seems appropriate to evaluate the external view on IT outsourcing by observing changes in stock prices after outsourcing announcement s. If rational investors value both the tangible and intangible effects of IT outsourcing, a change in stock price should reflect the contribution of the outsourcing engagement to the firm's value. And the paradigm presumes that the market's evaluation will be more correct than individual computations. Since 2000 a few event studies on the effects of announcing the outsourcing of IT systems were published. We summarize the results of these studies and replicate them for outsourcing decisions of Swiss companies.

Suggested Citation

  • Fabian S. Willi & Gerhard F. Knolmayer, 2009. "The Effects of Outsourcing Announcements on Market Values of Swiss Firms: An Event Study," Springer Books, in: Rudy Hirschheim & Armin Heinzl & Jens Dibbern (ed.), Information Systems Outsourcing, pages 201-214, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-88851-2_9
    DOI: 10.1007/978-3-540-88851-2_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dahlgrün, Philipp W. & Bausch, Andreas, 2019. "How Opportunistic Culture Affects Financial Performance in Outsourcing Relationships: A Meta-Analysis," Journal of International Management, Elsevier, vol. 25(1), pages 81-100.
    2. David M. Goldberg & Jason K. Deane & Terry R. Rakes & Loren Paul Rees, 2022. "3D Printing Technology and the Market Value of the Firm," Information Systems Frontiers, Springer, vol. 24(4), pages 1379-1392, August.
    3. Jason K. Deane & David M. Goldberg & Terry R. Rakes & Loren P. Rees, 2019. "The effect of information security certification announcements on the market value of the firm," Information Technology and Management, Springer, vol. 20(3), pages 107-121, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-540-88851-2_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.