The purpose of this study is to examine the market’s reaction to a firm’s announcement to outsource a part or all of its information system. Event study methodology is used to examine abnormal market returns associated with such announcements. Chief executive officers (CEOs), as well as chief information officers (CIOs), have a vested interest in the study since the results imply that outsourcing announcements represent an economic value-added activity in the capital markets arena.
Hunton, James; Reck, Jacqueline; and Hayes, David, "The Market's Reaction to Information Systems Outsourcing Announcements" (1999). AMCIS 1999 Proceedings. 283.