A strategic analysis of a Credit Union's technology outsourcing

Envision Credit Union, the third largest credit union in British Columbia, operates in a highly competitive banking industry and attempts to differentiate itself through superior face-to-face customer service and employee satisfaction. Many low-cost competitors leverage technology to electronically simulate face-to-face service to become a virtual differentiator. To compete with low-cost rivals, Envision developed the Pathways partnership with First Calgary Savings Credit Union. This allows Envision to enter new markets and improve cost effectiveness by merging technology departments into one service provider called ITCo. This paper focuses on the implementation of ITCo by first performing an exte rnal industry analysis to validate the ITCo strategy and then conducting an internal analysis of ITCo’s capability to implement the strategy. This paper proposes an action plan that fills ITCo’s capability gaps to successfully transform into a technology services organization, with focus on cultural change management processes, customizing performance management standards, and reconfiguring organization structure.