More outsourcing to India

[Rolf Latham]

Hi all

Got this little email this afternoon from one of my big 4 bdms

This is the 4th time the mortgage docs have gone to the client for a refi we have been trying to settle for near 3 mths.

So................if you are wondering why some of your deals take so long.......


The docs for XXXXXX were sent back in last wednesday and recieved on thursday, as discussed. Instead of the file being picked up by one of the usual people who look at the file, it has been randomly selected to go into this new trial team in INDIA! I cant get through to anyone there, either by phone or email, I have made complaints to try to get the file back, but I'm having not much sucess. I've gotten my manager involved today, to see what he can sort out.....

 

[Strannik]

yup
in US they outsource quite a lot of legal work to India now.
it's becoming next IT

 

[chilliaa]

Hi all

Got this little email this afternoon from one of my big 4 bdms

This is the 4th time the mortgage docs have gone to the client for a refi we have been trying to settle for near 3 mths.

So................if you are wondering why some of your deals take so long.......


The docs for XXXXXX were sent back in last wednesday and recieved on thursday, as discussed. Instead of the file being picked up by one of the usual people who look at the file, it has been randomly selected to go into this new trial team in INDIA! I cant get through to anyone there, either by phone or email, I have made complaints to try to get the file back, but I'm having not much sucess. I've gotten my manager involved today, to see what he can sort out.....

Get used to it. We are operating in a global economy now.
This is going to present many challenges to the future, not least of which a transfer of 'wages' from the west to the east.
At least most of our fellow sommersofters are try to save money and are investing. Pitty the poor (or stupid) fellows who spend everything they make thinking that things will stay at the status quo in perpetuity.

 

[chilliaa]

THis is actually quite like the industrial revolution that occurred in Great Britain during the 18th century.
Great for those with capital, but pretty dismal for the working class.

 

[sailor]

Outsourcing ends up being more expensive in the long run.

When the Australian Defence Force starting their huge outsourcing program during the last decade, it was the day after the UK Defence Force ceased theirs after a 10-year trial. It just doesn't work in the long run. Too much time and money is spent fixing up the problems, and the quality of service is not there any more.

I predict, we will see it come back to our own shores eventually. Customers just get too frustrated and will go elsewhere for real service.

 

[Rolf Latham]

Hey, Im an economic realist

There are things you can outsource, and then there are things you cant.

This is a great example.

That 700 k loan is gone from that lender as is any new business from that client.

I certainly will be advising clients wanting a "quick" settlement that this lender must not be used.

its not the outsource to X thats the problem.

Its the way its done ...............................with zip come back for the client.

You can outsource simple credit decisions and doc production etc etc, but the pointy client end .........thats where u will lose trust.

Once you have lost trust, you have lost the client.

ta
rolf

 

[silversands]

Hey Rolf should I be getting worried about now?!!

Jodie

 

[Peter_Tersteeg]

Someone close to me is a project manager outsourcing loan offer document processing to India for a lender known to breath fire. Some aspects of our discussion on this were quite concerning...

 

[lizzie]

re the fire breathing bank ... couldn't be any slower from india than it was trying to get documents out of kogarah!

 

[WinstonWolfe]

wonder how long it will be before finance clauses default to 28 days.
and that's 28 working days.....Indian working days
how many public holidays do they have over there? must be a few with all the Hindu Gods.

2008
10 Jan Muharram (Islamic New Year).
26 Jan** Republic Day.
6 Mar Mahashivratri.
20 Mar Milad-Un-Nabi (Birth of the Prophet).
21 Mar Good Friday.
24 Mar Easter Monday.
18 Apr Mahavir Jayanthi.
20 May Buddha Purnima.
15 Aug** Independence Day.
23-24 Aug Janmashtami.
2 Oct** Mahatma Ghandi's Birthday.
2 Oct Id ul Fitr (End of Ramadan).
6 Oct Dussehra (Vijaya Dashami).
28 Oct Deepavali or Diwali (Festival of Lights).
13 Nov Guru Nanak's Birthday.
8-9 Dec Idu'l Zuha/Bakrid (Feast of the Sacrifice).
25 Dec Christmas Day.
26 Dec Boxing Day.
29 Dec Muharram (Islamic New Year).

Hmmmmm........that'll slow things down.......

 

[alexgsz]

Outsourcing ends up being more expensive in the long run.

When the Australian Defence Force starting their huge outsourcing program during the last decade, it was the day after the UK Defence Force ceased theirs after a 10-year trial. It just doesn't work in the long run. Too much time and money is spent fixing up the problems, and the quality of service is not there any more.

I predict, we will see it come back to our own shores eventually. Customers just get too frustrated and will go elsewhere for real service.

I agree sailor, having seen quite a bit of IT outsourcing it seems to be the "thing" to do if you make those sort of decisions.

Funny thing is I haven't seen it save any money as it just creates new roles that didn't need to exist before.
Also I'm yet to hear from an outsourcing arrangement that has worked well. People are always trying to outsource their problems... which then turns into you still having a problem, but not being able to handle it directly

 

[BayView]

I just renewed my computer security software subscription, and had a problem with it.

Rang the help line and got a guy in India.

He was very helpful and we had a nice old chat as we were on the phone for a decent while.

If all companies can lift their game to the level he was at with their outsourced staff, many people should be worried about their jobs.

Maybe we should be investing in India now that they have an emerging middle class with heaps of cash?

 

[Rolf Latham]

Hiya

I believe there are quite a few emerging economy funds that work on those areas.

One of our IT areas is part outsourced, BUT probably managed ! The skills set is there, its usually the management and direction thats lacking.

ta
rolf

 

[sailor]

Well managed outsourcing certainly has its advantages....PROVIDED one can understand the person on the other end of the phone. Some accents are sooooo thick...makes it impossible.

 

[Debt Junkie]

Agree with Lizzie re Kogarah - aaargh!

I have a mobile lender now so that at the least, I can get really angry with someone in person ... getting angry down the phone achieved nothing for the me the last time it took six weeks to get finance approved (fortunately on a 60 day settlement) ... and it wasn't a complicated loan. Ended up taking the loan to another lender who approved finance in less than 24 hours ...

re the outsourcing ... the cost of doing the work probably goes down. The cost of negotiating, liaising, chasing up, teaching, re-teaching because of staff turnover etc goes up.

In recent efforts to track down an issue through India, one of my staff was advised that it's up to her to ensure she gets an operator she can understand beleive me she was trying! Got on to the Australian arm of the company and gave them a revving for that - do they want our business or not? Who's the client here?

Ridiculous!