Building a world-class alliance: The Universal Card-TSYS case

Abstract

Executive Overview Given that about half of all strategic alliances fail,1 the alliance of AT&T Universal Card Services (UCS) and Total System Services, Inc., (TSYS) has clearly beaten the odds. UCS markets and services the innovative AT&T Universal card, a combined long-distance calling card and general-purpose credit card. TSYS, as a strategic supplier, issues the credit cards, handles card transactions billing, and maintains customer records. The alliance has complemented the traditional strengths of AT&T's quality service and TSYS's quality product.2 It has further complemented each company's financial performance, leadership, and strategic intent. Within three years, this world-class alliance has resulted in UCS issuing over 19 million cards to 12.5 million account holders. The recent contractual extension of this alliance to the year 2000 provides exciting opportunities for both companies to “delight” their stockholders, employees, and customers. Were these two firms just lucky' Or are there some lessons for other companies' We believe the latter—you be the judge.