First Fidelity Bancorporation (C): Managing an Outsourcing Relationship with Electronic Data Systems

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Supplement

Reference no. 9A93E006

Subject category: Knowledge, Information and Communication Systems Management

Authors: Paul W Beamish (Ivey Business School, Western University); Barbara L Marcolin (Ivey Business School, Western University); Kerry McLellan (Ivey Business School, Western University)

Published by: Ivey Publishing

Originally published in: 1993

Version: 2002-08-03

Length: 14 pages

Data source: Published sources

Topics: Outsourcing; Relationship management; Information systems; Managing implementation

Share a link: https://casecent.re/p/16023

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Abstract

First Fidelity Bancorporation had outsourced its information systems conversion and on-going data centre management to Electronic Data Systems (EDS) on a ten-year contract. The EDS-FFB relationship was one year into the arrangement (1991) when several challenges had surfaced, the most urgent of which was an $8 million cost overrun on the conversion project. The EDS account manager had the choice of absorbing the costs, seeking compensation from the bank or suggesting a compromise. Several other challenges would also have to be addressed in the relationship, such as an incompatible software platform, resistance, difficult communications and flexibility to accommodate future bank directions and acquisitions. Background cases (9A93E005, 9A92M017) are available.

Location:

USA

Industry:

Banking

Size:

Large