Deloitte: Nearly All Major Lenders Will Offshore

Nearly all major mortgage companies and many smaller ones will be offshoring some business processes in three to five years, according to a new report from Deloitte Consulting LLP.Approximately half of the 40 largest mortgage lenders in the United States are now offshoring, and the industry is now poised at an "inflection point," Deloitte says. "The large firms already immersed in offshoring are looking past cost savings to other business drivers and benefits -- the challenge on the horizon will be the shift toward longer-term, strategic integration of offshoring into overall operations," the company said. "The many mortgage lenders who have yet to make any offshoring moves at all now have a window of opportunity to get ahead of the competition and begin to achieve cost considerations so they can then move on to enjoy the full range of offshore benefits." The report found that lenders expect savings of 35%-45% when moving processes offshore, and that data security, mortgage experience, and service quality were identified by 10 prominent vendors as the most important criteria on which they are judged by lenders. Deloitte can be found online at http://www.deloitte.com.