Mortgage Companies Use India As Option

As industry trends show a continued slowing in the mortgage arena, companies are now looking to offshore some of their process to India. The move would relieve some of the financial strain that lenders are feeling.

The gradual decline of lending volume and the steady increasing of rates has continued to hit mortgage profits hard. Companies that are looking to maintain their long-term competitiveness are beginning to look in the technology overhead, process reengineering and, most dramatically, in off-shoring work to India. The change has almost become a required activity for lenders who are looking to grow or even maintain a competitive position. What was once a leading-edge option is now a main means of survival in the dwindling mortgage market; both the US and the UK have begun to outsource IT services in their mortgage fields, and plan to spread the action to more chapters of the industry.

Most of the off-shore sourcing goes to India, with a secondary market in the Philippines and other smaller countries. India is a natural selection for out sourcing in the IT industry with an abundance of professionals with degrees, who are willing to work for about a third of what an American worker would make. Security clearance and continued education contribute to the growing trend of technology being handled by India. Companies are hoping to utilize this training for other areas of the work force, including back office processing, which would cut costs throughout the mortgage industry.

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