University of Hertfordshire

From the same journal

By the same authors

Off-shoring and out-sourcing for shareholder value: promise versus reality

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Original languageEnglish
Pages (from-to)18-26
Number of pages9
JournalAccounting Forum
Early online date6 Feb 2012
Publication statusPublished - Mar 2012


Corporate restructuring through off-shoring and out-sourcing is widely regarded as necessary for transforming cost structure and return on capital, particularly in situations of severe price erosion in globally competitive markets. This paper constructs an accounting framework to assess the extent to which out-sourcing and off-shoring have transformed US corporate financials. The contention in this paper is that off-shoring and out-sourcing may be necessary to maintain price competitiveness but we would add a health warning that these responses may not be sufficient to transform return on capital or shareholder value for wealth accumulation.

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