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Corportate strategy, centralisation and outsourcing in banking: case studies on paper payment processing

Author

Listed:
  • Bernardo Batiz-Lazo

    (Open University)

  • Douglas Wood

    (Manchester Business School)

Abstract

This is an empirical review of IT outsourcing as an emerging tool for corporate strategy after deregulation and other phenomena changed the suitability of the global/universal bank model. Case studies of UK commercial banks are used to focus on cost management of paper and electronic processing through insourcing and outsourcing arrangements to change the size/efficiency equation in banking. The analysis discusses the corporate strategy and corr capabilities ussues behind a number of innovations and illustrates how outsourcing and other third party arrangements alters strategic balance albeit as a component of overall strategy. The paper establishes why outsourcing decisions have been concentrated in particular aspects of banking and discusses the competitive and environmental forces which have contributed to this focus.

Suggested Citation

  • Bernardo Batiz-Lazo & Douglas Wood, 2003. "Corportate strategy, centralisation and outsourcing in banking: case studies on paper payment processing," Economic History 0301005, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpeh:0301005
    Note: Type of Document - pdf; prepared on ; to print on ; pages: 32
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    References listed on IDEAS

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    1. Humphrey, David B & Pulley, Lawrence B & Vesala, Jukka M, 1996. "Cash, Paper, and Electronic Payments: A Cross-Country Analysis," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(4), pages 914-939, November.
    2. David B. Humphrey & Lawrence B. Pulley & Jukka M. Vesala, 1996. "Cash, paper, and electronic payments: a cross-country analysis," Proceedings, Board of Governors of the Federal Reserve System (U.S.), pages 914-941.
    3. Dutta, Soumitra, 1996. "Linking IT and business strategy: The role and responsibility of senior management," European Management Journal, Elsevier, vol. 14(3), pages 255-268, June.
    4. Lawrence Loh & N. Venkatraman, 1992. "Diffusion of Information Technology Outsourcing: Influence Sources and the Kodak Effect," Information Systems Research, INFORMS, vol. 3(4), pages 334-358, December.
    5. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    6. John Cooper, 1984. "The Management and Regulation of Banks," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-06527-1, October.
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