"The trend to move mortgage BPO offshore (mainly India) is accelerating driven by the need to reduce costs aggressively. Strong adoption of default management services to manage deteriorating portfolios is driving the demand. Mortgage BPO providers have had to `plug into' bank platforms. As banks reduce investment in infrastructure, vendors will need to supply the platform, or at least enhancements to the platform," said Phil Fersht, CEO of HfS Research, reports TOI.

Abraham Mathews, CFO of Infosys stated that "After the 2009 economic crisis, banks in the US had reduced their capabilities in handling mortgage processing. But now with positive data emanating from the US housing market, the demand for mortgage outsourcing is expected to increase."

Infosys is one of the companies that provide mortgage services to 5 clients. Apart from Infosys, there are other IT companies like TCS, Accenture, Cognizant and Wipro who have started providing mortgage services.  

Adding to it, Cognizant came up with “Core Logic's India” in 2011 to support its mortgage service capabilities and Wipro has about 23 American clients for mortgage services.

"The mortgage outsourcing business has increased for Indian IT/BPO vendors because the rise in default rates in mortgage portfolios is pushing clients to reduce costs and bring in efficient processes," explained Keshav Murugesh , group CEO of BPO company WNS.

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