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Salie Mae Merger Case

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Salie Mae Merger Case
Information technology is a big portion many companies operations. Sallie Mae acquired USA Group not only because of economies of scale from combining operations which would allow Sallie Mae to continue being profitable but also USA Group had a better information technology system that runs their services efficiently more than Sallie Mae. So when the merger takes place it could leverage the information technology. Also to centralized their data center. Schaeffer Corporation with its divisional departments and purchasing ERP system were making profit but they realized tat outsourcing would save them money and make them more efficient. This is because no matter how much they spend on their information technology they would not be better than
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