Are you stuck in the 1990’s thought mode of being in-house with your core processing and other network services? I am sure that any forward-thinking senior management team member may have opened the topic of outsourcing. But, more often than not had that door closed very quickly. What? Get rid of our IT staff? What? Lose control of our data? What? Trusting a third party – yea, right! Duhh… Next agenda item, please.
As time passes, the IT area of your credit union is growing to monumental complexity. Retaining professional IT staff is difficult. Complying with regulations, data breaches, software upgrades, email security, maintaining updated hardware, and on and on and on. As an executive team member, do you think that more time is spent on IT infrastructure concerns than serving your members? It is a growing discussion item within the ranks of in-house processing style of credit unions. This discussion is not just limited to credit unions that are in-house processors of their core system as they also have other network type of services that could be outsourced.
In a recent conversation with a credit union CEO, it was best said:
“On the decision to outsource IT, the unequivocal piece of the decision in my estimation is that: We cannot as a credit union manage our IT environment in-house without sacrificing allegiance to our anthem of member service. I believe in the outsourcing of these duties. I would rather put my time and effort into properly managing those outsourced services than doing the work myself. I appreciate that in today’s environment I need a: Computer Operator (run the core daily processing); Network Admin, Security Expert, Programmer, plus an Executive to put all of these pieces together. A 4 person (minimum) IT department with the level of expertise we require in all 4 of those areas isn’t cost effective nor do I trust our ability to be the employer of choice in roles that require that type of expertise. Our IT strategic plan has been to get out of the IT business and concentrate on being a CU.”
So, the next question you may ask, “Who are the outsourcers for the total IT area?” Odds are your core provider may have some level of not only core, but the various components of networking services. But, you may want to look outside your core provider.
A Technology CUSO... It May Be Your Best Undiscovered Alternative!
Have you considered a technology CUSO? Did you realize that 1 in every 10 credit unions use a CUSO for an outsourced core platform? The majority of these also outsource their entire network services. This represents some $70 billion in credit union assets and some 7 million members trust their data to a technology CUSO.
Technology CUSO’s are very nimble and are eager to serve their credit union clients - after all, the vast majority of the CUSO employees are ex-credit union staffers. They understand the importance of service! It does harken back to the days when your primary technology provider knew your credit union, sent you birthday cards, and asked how the family was doing.
Obviously, I am partial to my CUSO, United Solutions Company. Some 125 credit unions across the country trust us to handle some, if not all, of their information technology responsibilities. In any event, please take a look at the CUSO potential and keep it in the family!
