First Fidelity Bancorporation (B): Selecting an Outsourcing Vendor
(8 pages of text)
First Fidelity Bancorporation had decided to use an outsourcing vendor to convert its existing information systems operations into a centralized facility and to operate the systems on a long-term basis. This decision was part of a rationalization process to consolidate eight independent banks into one operating structure so as to achieve cost savings and create a way of integrating new acquisitions and mergers. The holding company had to select an outsourcing vendor that could participate in this process and achieve the growth objectives set by the bank. The options were to select a partner or a supplier. A background case First Fidelity Bancorporation (A)
- To explore both the economics and strategic implications behind a potential outsourcing decision.
- To examine the complicated technical, political, and cultural factors involved in transforming and rationalizing a hierarchical holding company of independently managed business units into an integrated centrally managed firm.
Finance and Insurance
USA, Large, 1991
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