Introduction

Mortgage BPO stands out as the largest submarket within the banking BPO space. The role of BPO assumes greater importance in the mortgage landscape as regulatory bodies continue to increase their oversight on mortgage activities of banks. This, coupled with newer entrants in the space (for instance, small banks), is causing a spike in the demand for mortgage BPO. Buyers are now looking towards service providers to deliver more than just cost savings. Tools to ensure compliance and prevent banks from faltering in the future are increasingly gaining prominence. However, service providers still need to prove their capabilities to buyers (especially, first-time buyers) before widespread adoption can be witnessed. With progressively changing landscape, service providers will be required to make the right set of investments to stay competitive. At the same time, buyers will need to identify the providers who clearly understand their unique business challenges and can help mitigate them.

Scope and Methodology

In this research, we analyze the global mortgage BPO service provider landscape. We focus on:

• Relative positioning of 14 service providers on Everest Group’s PEAK Matrix for mortgage BPO
• Service provider capability assessment across key dimensions
Service provider profiles

Content

This report will assist key stakeholders (financial institutions, service providers, and technology providers) understand the changing dynamics of the mortgage BPO market service provider landscape. It will also help them identify market Leaders, Major Contenders, and Emerging Players for 2015. The report provides detailed analysis of service provider market share, relative position on the Everest Group PEAK Matrix, capability assessment, and emerging trends. Some of the findings in the report are:

• There are four service providers in the Leaders category (Accenture, IBM, TCS, and Wipro), eight service providers in the Major Contenders category (Cognizant, Genpact, HCL, IGATE, Infosys, Mphasis, Sutherland Global Services, and WNS), followed by two service providers in the Emerging Players category (EXL and Xchanging)
• Top Quartile performers together account for about three-fourths of the market share by revenue and close to 85% by number of clients
• Top Quartile performers not only have high firm-wide revenue, but also have a higher focus on mortgage BPO as part of their overall portfolio of services
• Innovative measures, such as adoption of advanced pricing models, investing in Service Delivery Automation (SDA), and building capabilities across judgment-intensive tasks such as analytics, regulatory, and risk management, are also some of the key differentiators that buyers are actively demanding
• Top Quartile performers have much higher technology capabilities in terms of both platform and augmentation tools. Others primarily rely on an FTE-driven delivery model
• Top Quartile performers have a more balanced shoring mix and have invested in building up a sizable onshore presence to service specific client requirements