Journal Article

Outsourcing, firm size, and product complexity: evidence from credit unions


Abstract: Outsourcing business services is a key concern in the modern economy. Focusing on data processing services for credit unions from 1994 to 2003, the authors find that both credit union size and the diversity of their product offerings influence the propensity to outsource. The results suggest that simple scale-economy-based explanations for outsourcing may be inadequate.

Keywords: Contracting out; Credit unions;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 2005

Volume: 29

Issue: Q I