For many companies in the U.S., both within the housing industry and outside of it, the practice of using offshore employees, commonly known as offshoring, has become more common in recent years.
While offshoring began with many non-customer-facing jobs, like data entry, the use of offshore employees has become increasingly popular for customer service departments and other customer-facing departments.
The reasons behind the increasing trend of offshoring are pretty simple. It’s simply cheaper to employ workers based in India, the Philippines, and other foreign countries than it is to employ workers in the U.S.
For many in the mortgage servicing business, offshoring has become the rule more than the exception. Several of the country’s largest mortgage servicers already have as much of a third of their mortgage servicing staff offshore.
In fact, one of the country’s largest mortgage servicers,Ocwen Financial (OCN), has a whopping 73% of its mortgage servicing staff offshore.