WARRENSVILLE, Ill., and DULUTH, Ga. (1/18/12)--Alloya Corporate FCU and VSoft Corp. have entered into a strategic partnership to outsource the Warrensville, Ill.-based corporate's back-office item-processing services to VSoft. The partnership will become effective Feb. 5.
"Alloya will benefit from reduced operating costs and improved net product margins, reduced facilities expenses, and a deepened partnership with a best of breed company in the item processing space," said Charles W. Furbee, acting CEO at Alloya. He noted that VSoft's willingness to hire the employees affected by the transaction was an important consideration in the decision.
The transaction "perfectly illustrates our go-forward strategy of partnering with quality companies to provide value added services to our members on an aggregated basis, rather than Alloya manufacturing [the services] itself," Furbee said.
In addition to hiring the current item processing staff at Alloya, VSoft will sublet space in the corporate's Albany, N.Y., facility to house them, said Murthy Veeraghanta, managing director and CEO of VSoft.
The transaction means VSoft will acquire a stable and knowledgeable staff to provide ongoing service to credit unions while supplying a platform to grow the business, VSoft said. VSoft will be able to leverage its relationship with the corporate to bring future products to credit unions, while providing "a profitable platform from which to serve others in the marketplace," said Veeraghanta.