Michael Murray: Shares in outsourcing firms should offer a wealth of opportunity, but reputational risks can be costly

Every business faces risks of a financial, operational, market, business, regulatory and reputational nature. One of the lower-profile segments of the stock market – the outsourcing segment – has several companies within it which have been hit by reputational risk in recent years; in some cases as a result of serious malpractice, and in others due to operational failures.

The damage to brand equity has often been significant. In this sector, it can ...