In our last blog, we discussed how mortgage lenders can seamlessly expand mortgage operations with offshore deliver centers (ODCs), while enjoying several benefits in terms of cost, availability, speed, and improved quality of deliverables. The shift to the ODC model is important as it frees up IT budget to focus on growth activities. Organizations these days spend close to 45% of their IT budgets on growth initiatives compared to 20% of their IT budgets 5 years back. As less budget is earmarked for the traditional IT operations, this shift necessitates rationalization of traditional IT operations costs, developing capabilities that make operations cost-effective, nimble, and resilient. ODCs are a perfect fit for this scenario.
However, it is not enough to just set up the ODC. To ensure that it delivers on the promised results within timelines, lenders need to participate right from sharing knowledge to aligning internal processes and workflows.
Here are key steps that mortgage lenders can take to derive optimum benefits from an ODC setup:
1. Undertaking regular training and reviews for continuous improvement
An ODC setup is an extension of your current operating facilities. It helps if the training of products and processes in line with the parent company to ensure the homogeneous quality of deliverables.
Setting up regular training, reviews, along with defining governance metrics is essential to ensure continuous improvement. Customized training programs encourage initiative and drive among ODC team members, helping them continually improve performance. With regular training cadence, the ODC teams are up to date and are able to make a progressively greater contribution to the operations.
2. Involving ODC in the company initiatives
The ODC teams need to be involved in some of the initiatives of the parent company. Instead of limiting initiatives to onshore teams, efforts must be made to allocate responsibilities to the ODC teams as well. It is up to leaders to manage power dynamics and ensure that important work is distributed between inhouse and ODC teams.
3. Organizing employee engagement activities at the ODC
While keeping inhouse employees engaged is a must, teams at ODC can often be left out. Employee engagement activities can result in significant benefits in terms of productivity and employee morale in the ODC set up too. No direct contact with the parent company can result in disengagement. Regular, thoughtful communication and employee engagement activities is a great way to keep ODC teams involved. Even doing small things, like remembering birthdays or anniversaries, can make a world of difference and can help make ODC teams feel like an integral part of the team.
4. Creating strong feedback mechanisms
Poor communication, uncertain expectations, and sometimes even cultural differences can all contribute to undermining the benefits of an ODC. It is important for mortgage lenders to provide timely and effective feedback. The offshore team needs a clear picture of the success factors and the business priorities of the parent company.
After setting up tasks and deadlines for the ODC teams, the parent company needs to give overall feedback — positive as well as negative– to the offshore team. Healthy communication is essential between the parent company and the ODC to build trust and loyalty, which is essential for a successful long-term partnership.
ODC setup can work well for lenders if they take some of these steps. We at Visionet have set up, developed, and managed world-class ODC facilities for some of the top mortgage lenders in the US. These ODCs have industry-leading infrastructure and bring demonstrable ROI. To know more, get in touch with us at firstname.lastname@example.org
Visionet is a leading digital technology solutions provider for the BFSI and Residential Mortgage industry. We are passionate to deliver exceptional business outcomes to our clients leveraging deep industry expertise and proprietary mortgage technology products. We post our views on mortgage technology and industry updates through this blog.