Magazine article Mortgage Banking

More Mortgage Firms Look to Offshore to India

Magazine article Mortgage Banking

More Mortgage Firms Look to Offshore to India

Article excerpt

With the gradual decline in mortgage lending volume and profits, a report by Needham, Massachusetts-based TowerGroup found that lenders looking to maintain a long-term competitive position in the marketplace have increased their focus on technology and business process re-engineering, as well as offshoring in order to improve operational efficiency and lower unit costs.

The TowerGroup report, IT Services and BPO Offshoring to India: From Leading-Edge Strategy to Mainstream Activity, noted that global outsourcing of information technology (IT) services and business process outsourcing (BPO) has become a mainstream strategy in the United States and United Kingdom.

"Offshoring has moved from being a leading-edge business strategy to being a required mainstream activity for lenders that want to grow or maintain their competitive position over the long term," notes the report. "Every top-tier lender needs to develop an offshore strategy and evaluate the captive, joint venture or business process outsourcing (BPO) operating models."

TowerGroup estimated that as of December 2005, 15 of the top 20 U.S. mortgage lenders and five of the top 10 U.K. lenders had captive or BPO offshore operations in India, the Philippines or elsewhere. …

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