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Medium Cost Reduction Operations M&A Outsourcing

Money Bank Call Center

#Legal & Professional Services #Financial Services
ProHub Comment

This case tests cost reduction and operational optimization in a post-M&A context. Candidates must balance quantitative cost analysis (comparing three geographic locations) with qualitative factors (labor regulations, service quality, reputational risk) to develop a recommendation. The case emphasizes that pure cost minimization is insufficient—implementation feasibility and strategic risks must be thoroughly evaluated.

Estimated Time 15 minutes
Difficulty Medium
Source Kellogg
50 / 100
Our client is a large financial services firm with multiple locations around the world. Part of their service offering includes a 24-hour helpline. The client has their call centers in New York and Paris. The client has recently acquired a small firm (Firm B) in order to expand its reach in a particular geography. Firm B provides a subset of the services and has its call center located in the Philippines. The client has asked us to determine its strategy going forward for handling customer calls. In particular they want us to look into the call center operations.

Clarifying Information

  1. Provides full range of financial services for individuals and small organizations
  2. Acquired firm was started 5 years ago and is still run by the original founders
  3. New employees are college graduates with basic knowledge of financial services and products
  4. Fluency and English and several European languages required
  5. Very difficult to lay off employees in the Paris location & significant costs will be incurred
  6. Philippines government encourages investment in the country & significant tax advantage possible