Outsourcing opportunities for financial services

Organizations have the opportunity to develop an active sourcing strategy, blending inhouse provision with sourcing from outside, through outsourcing and the development of collaborative relationships. This is a strategic development which is made more urgent by increasing competitive pressures and uncertainty. This article examines the pattern of sourcing that has been developed by building societies and the forms of strategic advantage that have been achieved. The policy processes guiding this area of strategy and the criteria used by executives to consider outsourcing are examined. Despite the advantages that have been achieved, in the majority of societies policy guidance is found to be informal and the culture of the societies appears resistant to further outsourcing. Copyright (C) 1996 Elsevier Science Ltd