Indian BPO companies have taken giant strides in the mortgage industry in the last couple of years. The latest report by HfS, the research company, published a report focusing on the growing mortgage outsourcing trend with revenue set to increase from $158 million (2009) to $ 316 million this year. It signifies the importance of outsourcing business processes to countries like India considering heavy operational costs involved in managing large in-house teams.
Several banks and financial institutions believe in the ideology of outsourcing different services related to the mortgage industry: loan verification, underwriting and documentation for counter claims etc.
Maintain right balance by outsourcing and retaining jobs
The success of any business model depends on taking the right approach. Banks have adopted a blended approach when it comes to outsourcing mortgage processes to India. They retain a number of jobs in the country and outsource clerical work to offshore business centers. The corporate philosophy is clear: To outsource backend processes taking the operational costs into account. Lower labor costs have driven the outsourcing industry.
Financial institutions and banks did not stop there. With the kind of results delivered combined with expert skillsets, they'd started involving BPO companies in key management projects. The transformation from handling customer queries to offering strategic management planning was a noticeable achievement on the part of mortgage BPO service providers in the company.
Local markets influence global working culture
Financial institutions have stopped making huge investments on infrastructure. It is considered a poor investment considering heavy costs involved with lower return on investment ratio. They would prefer to outsource mortgage processes without even thinking about it.
Banks study local markets closely before creating future investment portfolio. The success of mortgage process outsourcing in BPO makes it evidently clear why banks do not want to manage in-house teams and bear unnecessary costs involved with training and recruitment programs. High labor costs and low profit margin have changed the way banks used to work in the past.
Indian BPO companies develop customized training programs to handle customer queries effectively. They work on providing innovative solutions without taking the eyes off financial targets. It is a highly challenging and demanding job, to say the least. Banks need to be patient and work on a long-term strategy. Things would not change overnight by outsourcing mortgage process to India. It is for sure that you would start witnessing results right from the first day with the kind of reputations these offshore centers have in the mortgage industry.
Several banks and financial institutions believe in the ideology of outsourcing different services related to the mortgage industry: loan verification, underwriting and documentation for counter claims etc.
Maintain right balance by outsourcing and retaining jobs
The success of any business model depends on taking the right approach. Banks have adopted a blended approach when it comes to outsourcing mortgage processes to India. They retain a number of jobs in the country and outsource clerical work to offshore business centers. The corporate philosophy is clear: To outsource backend processes taking the operational costs into account. Lower labor costs have driven the outsourcing industry.
Financial institutions and banks did not stop there. With the kind of results delivered combined with expert skillsets, they'd started involving BPO companies in key management projects. The transformation from handling customer queries to offering strategic management planning was a noticeable achievement on the part of mortgage BPO service providers in the company.
Local markets influence global working culture
Financial institutions have stopped making huge investments on infrastructure. It is considered a poor investment considering heavy costs involved with lower return on investment ratio. They would prefer to outsource mortgage processes without even thinking about it.
Banks study local markets closely before creating future investment portfolio. The success of mortgage process outsourcing in BPO makes it evidently clear why banks do not want to manage in-house teams and bear unnecessary costs involved with training and recruitment programs. High labor costs and low profit margin have changed the way banks used to work in the past.
Indian BPO companies develop customized training programs to handle customer queries effectively. They work on providing innovative solutions without taking the eyes off financial targets. It is a highly challenging and demanding job, to say the least. Banks need to be patient and work on a long-term strategy. Things would not change overnight by outsourcing mortgage process to India. It is for sure that you would start witnessing results right from the first day with the kind of reputations these offshore centers have in the mortgage industry.
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