Newcastle predicts growth in outsourcing

Newcastle says the unpredictable mortgage market will lead more financial services firms to outsource this year.

The society has experienced significant year-on-year growth of its own outsourcing business arm, Newcastle Strategic Solutions.

The business provides computer systems and support for various firms’ services including savings and mortgages.

It says it has seen an increase in new customers outsourcing for the first time this year.

Colin Greaves, managing director of Newcastle Strategic Solutions, says current market problems have mounted pressure on costs and tightening margins.

He adds: “2007 was the year the global nature of economic issues and the impact they can have on our economy began to be realised by businesses and the public.

“Our solutions business expanded beyond our expectations in 2007 in terms of customer acquisitions and business volumes.”

He adds: “We are now being approached by firms thinking of outsourcing for the first time. They are being forced to rethink their strategies in the current climate.”