Alloya Corporate FCU ("Alloya") and VSoft Corporation ("VSoft") announced today that they have entered into a strategic partnership that outsources the corporate's back office item processing services to VSoft. The effective date of the agreement is Feb. 5, 2012.
Charles W. Furbee, acting CEO of Alloya, said, "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." Furbee also noted that VSoft's willingness to hire the employees affected by this transaction was an important consideration in the decision to move forward.
"This 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 them itself," Furbee continued. As outlined in its Forward Together business plan, this approach assures future product enhancements and ongoing high service and satisfaction levels for credit unions, while keeping Alloya's costs and capital investments down.
Murthy Veeraghanta, managing director and CEO of VSoft, remarked, "VSoft will be hiring all of the talented staff that currently perform and support the item processing function at Alloya, and will sublet space in the corporate's Albany, N.Y. facility to house them." This provides VSoft with a stable and knowledgeable staff to provide ongoing service to credit unions while supplying a platform to grow the business.
"This partnership with Alloya makes perfect strategic sense for VSoft," Veeraghanta added. "By further aligning itself with an industry leader with a large membership base, 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."