Mortgage origination and servicing industry, much like other financial services sectors, relies on Business Process Outsourcing (BPO) to improve operational efficiency and profitability. Banks & Mortgage Servicing companies have been gradually shifting operations from high factor cost locations to low factor cost locations.
The value drivers that make Offshore BPO possible, include:
- Low factor costs
- Virtually unconstrained supply of high-quality operation and managerial talent
- Better capacity utilization and efficient labor deployment
- Reduced error rates
- Stronger focus on core business issues
Offshore BPO is a transformational strategy that can yield cost reductions of 35 to 45 percent, along with improvement in productivity and service levels. Offshoring Mortgage processes must be viewed as a strategic part of a business services plan. The lender that has an existing partnership(s) with a BPO vendor and a clear strategy guiding offshore decisions can outsource finer grain processes, expand and retract services more quickly, and generally execute BPO strategies more efficiently to react to changing market conditions.