What term describes using an external organization to provide specialized services (e.g., IT or collections) to access capabilities and manage risk and cost?

What term describes using an external organization to provide specialized services (e.g., IT or collections) to access capabilities and manage risk and cost?

• A. In-house outsourcing
• B. Vendor alliance
• C. Shared services
• D. Credit Union Service Organization

Answer: (D)

Accessing specialized services through an external, member-owned organization lets a credit union obtain capabilities like IT or collections while spreading risk and reducing costs. In the credit union world, this arrangement is known as a Credit Union Service Organization. A CUSO is a separate legal entity owned by one or more credit unions that provides services to its owners, enabling scale, shared expertise, and risk mitigation without each credit union needing to build and maintain those capabilities on its own. This fits the scenario because it describes an external provider created or owned by credit unions to deliver specialized services, rather than internalized functions, broad partnerships, or internal shared services within a single organization.

Accessing specialized services through an external, member-owned organization lets a credit union obtain capabilities like IT or collections while spreading risk and reducing costs. In the credit union world, this arrangement is known as a Credit Union Service Organization. A CUSO is a separate legal entity owned by one or more credit unions that provides services to its owners, enabling scale, shared expertise, and risk mitigation without each credit union needing to build and maintain those capabilities on its own.

This fits the scenario because it describes an external provider created or owned by credit unions to deliver specialized services, rather than internalized functions, broad partnerships, or internal shared services within a single organization.