Outsourcing isn’t just for major banks. It can create huge benefits for brokers, as long as you avoid these common mistakes
Outsourcing has huge benefits for brokers, as long as they avoid the common mistakes, says Loanworks Technologies general manager, sales, Wayne Macartney.
Many brokers are only too familiar with the pressures of running a cost-effective business without jeopardising the quality of service. However, outsourcing is something they often don’t consider or think is too risky.
But it is an option with proven results in the Philippines, where there’s no shortage of skilled staff, Macartney told MPA TV.
“The advantages of outsourcing, especially in Manilla, is that you have got a very deep talent pool of staff in terms of skill sets, in terms of attitude and in terms of the mortgage industry already,” he says.
“You can lower your internal costs and with margins tight and with not as many home loans to go around these days, these are important considerations.”
The first place to start is what Macartney calls the “lowest common denominator work”. That is, outsourcing the routine data entry points, which will allow Australian staff to focus on more value-added work, such as talking with customers.
“Once you have got that in place you can then build off that and theoretically there is no limit to what you can and can’t outsource,” he says.
Common mistakes
There are, however, significant risks for businesses unfamiliar with this process, says Macartney. These include:
Should brokers outsource to other countries? Do the benefits outweigh the risks? Share your thoughts below.
Many brokers are only too familiar with the pressures of running a cost-effective business without jeopardising the quality of service. However, outsourcing is something they often don’t consider or think is too risky.
But it is an option with proven results in the Philippines, where there’s no shortage of skilled staff, Macartney told MPA TV.
“The advantages of outsourcing, especially in Manilla, is that you have got a very deep talent pool of staff in terms of skill sets, in terms of attitude and in terms of the mortgage industry already,” he says.
“You can lower your internal costs and with margins tight and with not as many home loans to go around these days, these are important considerations.”
The first place to start is what Macartney calls the “lowest common denominator work”. That is, outsourcing the routine data entry points, which will allow Australian staff to focus on more value-added work, such as talking with customers.
“Once you have got that in place you can then build off that and theoretically there is no limit to what you can and can’t outsource,” he says.
Common mistakes
There are, however, significant risks for businesses unfamiliar with this process, says Macartney. These include:
- Underestimating the work involved in getting it up and running: “Certainly it’s worth doing a study tour or just going for a visit, having a look at what it’s like on the ground over there. Your eyes are really opened up and you get what it’s about,” says Macartney. “But then you have got a learning curve. You’ve got government bureaucracy. You’ve got start-up costs. You’ve got to find your way in an environment you don’t know who is reputable and who isn’t. You get that bit wrong and you could be churning through quite a bit of money with no guarantee of an outcome out the other end.”
- Choosing the wrong service: It is also important to choose the right outsourcing partner who has a proven track record, says Macartney. Many business process outsourcing (BPO)-style offerings have “cookie-cutter” services and are not interested in small accounts, he says. In contrast, he adds, it is important to have a partner who will match the right staff to the broker’s policies and procedures.
Should brokers outsource to other countries? Do the benefits outweigh the risks? Share your thoughts below.
