WEST PALM BEACH, Fla., Dec. 14, 2004 (PRIMEZONE) -- Forty-two percent of the respondents to a survey of mortgage industry leaders said they are likely to outsource at least some services within the next two years, according to a study released today by Ocwen Financial Corporation (NYSE:OCN).
The Ocwen-sponsored study, titled "Business Process Outsourcing: What Mortgage Industry Leaders Really Think," was conducted by an independent survey firm that asked mortgage industry leaders whether they were likely to outsource over the next two years; what they think are the motivating factors for outsourcing; and what they think are the key benefits to outsourcing. Respondents included mortgage brokers, mortgage servicers and correspondent and retail lenders.
More than half of the respondents stated that they agreed that the growing cost of human resources was a motivating factor for outsourcing, although overall respondents thought the two greatest motivators for outsourcing were management accountability and an increase in customer expectations.
Most respondents cited access to state-of-the-art technology and reducing or avoiding capital expenses as key benefits of outsourcing. Language barriers related to outsourcing were not considered a major concern.
"It has been our experience that companies that have been successful in the outsourcing arena generally have developed their approach by following four basic rules," said W. Michael Linn, Ocwen's Executive Vice President. "First, they began by establishing a clear strategic vision for how Business Process Outsourcing could best be utilized within the organization. Then, to ensure improvements were being made and documented and to reduce the risk of the investment, these companies leveraged a quality improvement methodology such as Six Sigma. Third, they applied the most advanced, proven technology infrastructures, and finally, these companies focused attracting and retaining the most highly qualified and motivated staff."
The survey concludes that differences in survey responses between the larger and smaller firms illustrate the positive experiences larger firms are already enjoying as a result of outsourcing initiatives. The fact that larger firms cited fewer concerns about outsourcing is indicative of new efficiencies and cost savings gained. Results also indicate that outsourcing will continue to evolve as a key strategy that will allow U.S. companies to remain competitive both domestically and internationally.
About Ocwen
Ocwen Financial Corporation is the mortgage industry's largest third-party global outsourcer with nearly 3,500 employees at operations in North America, Europe and Asia. A recognized pioneer in workflow improvement methodologies, Ocwen offers business process outsourcing and customer interactive services to companies in the mortgage, insurance and financial services industries.
Additional information about Ocwen Financial Corporation is available at www.ocwen.com.