2 Areas Not To Outsource

Part 1 Here

In my last post, I submitted that today’s outsourcing is not all that different from basic economic specialization.  We can see that due to advances in technology – particularly communications – the pool of places, talent and resources to draw from is now essentially global and nearing limitless.  Often times my customers ask me questions and I have to point out that the question they have asked is not a matter of “can” something be done, but instead “should” it.  That is where these options with outsourcing have left us.

So what areas should a successful corporation focus on?  Obviously those that offer the biggest return in cost savings.  Now those who have done business with me over the years know me to be perhaps obsessive when it comes to focusing on hard dollar ROI and having very little tolerance for the soft dollar pay-backs that are often used to justify technology sales.  That being said, one has to consider all the COSTS including harder to estimate impacts on other areas of the organization.   Continue reading “2 Areas Not To Outsource”

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Dealing With Red Tape?

How will lenders cope with increased oversight requirements?

How will lenders cope with increased oversight requirements?

The reaction to recent developments in the mortgage lending world seems to dominate the headlines. Each morning, the front page of Wall Street Journal brings news of yet another lender closing their doors or “suspending” operations. Meanwhile, various opinion pieces are calling for new government regulations.

Whether we see new requirements from the government or simply change to appease frightened stockholders, the coming months and years are sure to add complexity to an already cumbersome process. The companies that remain as lenders will likely see huge volumes of loans even if the overall number of loans decreases simply by taking volume that might have been distributed to those who have left the industry. These volumes are likely to be sustained since it will be very difficult for any new players to raise money to enter the market.

Traditionally, lenders have added headcount to address up ticks in volume. Continue reading “Dealing With Red Tape?”