Mortgage servicing remains a viable business model, but firms in the space are increasingly choosing to outsource work and jobs to India to maintain their profit margins in today’s heavily regulated market environment, the Wall Street Journal reports.
Reporter Joel Schectman sees India as the main beneficiary of this trend.
He writes:
The move is creating a new revenue stream for such Indian outsourcing firms as Tata Consultancy Services Ltd. 532540.BY +1.07% and Wipro Ltd. 507685.BY -0.04% at a time when many Western companies have been pulling back on information-technology outsourcing. This year, Indian outsourcing firms will bring in $316 million in mortgage work, double the revenue from such work in 2009, according to estimates from HfS Research, an outsourcing consulting firm.
