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BM Strategic Outsourcing Strategic outsourcing positively impacts shareholder value. Our research suggests the difference is in the order of % above the individual sector average and % above the overall FTSE 100. Source: Man Chambers, Outsourcing in the FTSE 100: The Definitive Study Evidence shows that IT outsourcing has a discernible positive impact on share prices. A study of 27 panies undertaking large IT outsourcing initiatives indicates an average gain in shareholder value of % over and above the general market trend. Source: Stern Stewart, IT Outsourcing and Shareholder Value Why outsource? To increase shareholder value... 5 IBM Global Services Strategic Outsourcing 169。 2023 IBM Corporation IBM Strategic Outsourcing ?Slow economic growth and pressures to improve earnings are bining to make cost cutting the primary agenda item for a large majority (78%) of panies ?Growth is emerging as an important issue as economic recovery has been postponed (and may be slow to return). ?IT continues to be an important lever in achieving the cost saving objective for most panies in two very different ways ? IT is being tasked to enable business process efficiency ? IT spending is also a source of savings as budgets for all functions are being trimmed. ?In general, IT budget pressure is in line with the overall business, however 30% of respondents indicate that IT spending has been cut more than other functions while 10% state that IT has been protected from cuts Source: 2023 SO Market Insights study of 300 senior executives, Mercer Management Consulting Companies are taking actions to improve their bottom line rather than waiting for “the recovery” to solve problems In a weak global economy, panies face uncertainty about their economic and strategic future 3 IBM Global Services Strategic Outsourcing 169。 2023 IBM Corporation IBM Strategic Outsourcing ?The Market Environment ?Strategic Outsourc