Delayed cord cutting has great benefits for the baby and assists in their transition to breathing on their own.
“In the interim between birth and the natural occlusion of the blood flow in the cord, the infant’s brain and body are nourished with oxygen-rich blood from two sources, ensuring a healthy transition to neonatal life. If the cord is cut immediately following birth, blood within the cord and placenta, which the baby would normally use to establish lung circulation, remains trapped in the placenta. The infant will then divert blood from the other organs to fill the vessels in the lungs.”
http://www.midwiferytoday.com/articles/PrematureLigation.asp