Companies should be wary of outsourcing processes that distinguish them from the rest of the industry, says Kensington Mortgages.Ian Giles, director of marketing at Kensington, warns companies to be wary of outsourcing any processes that set them apart from their competitors. He says: “Differentiation is important. If you have a process that differentiates you from your competitors you should think twice before outsourcing it. “If it is one of your firm’s key selling points – and processes often are – your ability to adapt it at the drop of a hat is likely to outstrip that of your outsourcing provider. “With outsourcing, firms are vulnerable to having their ideas and strategies shared with other firms.” He adds: “If you’re doing what everybody else is doing but more expensively, then for goodness sake outsource. But from a sales and marketing perspective I’d be pretty worried about seeing any process that plays a strategic role in a company outsourced.” Alan Cleary, managing director of edeus, says: “When you are building a system like we are you don’t want to transfer your ideas to a software company which can sell the system on to someone else. “What we’re doing to combat this is not using a single company to build our software system but several, so it can’t be sold on.” Homeloans Management, which handles outsourcing for Kensington, declined to comment.
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Hamptons Mortgages’ call for lenders to take on borrowers’ exit fees from their previous lenders has been criticised by lenders. The London brokerage made the suggestion following the Financial Services Authority’s call for lenders to implement justifiable and fair exit fees and consider whether borrowers think their terms might be unfair. Jonathon Cornell, technical director […]
Rosemary Hilary has been appointed director of the business review and audit division at the Financial Services Authority.
From Ian Nelson HSBC should clean up its own act before blaming others. HSBC CEO Michael Geoghegan’s comments re- garding bad debts, bankruptcies and IVAs are remarkable. It seems to be his view that it’s everybody’s faults but his. Working for a lender that picks up the pieces after prime lenders, credit and store card […]
Homeloan Management has signed a three-year servicing contract with Close Brothers in the UK to service its intermediary channel business originated through its own subsidiary Mortgage Intelligence. HML will process all the post completion administration from this channel following receipt of completed applications from MI. Close has ambitious plans to grow its intermediary distribution channel […]
The era of loose monetary policy created an environment that rewarded passive investors in the US. However, with the US raising interest rates for the first time since 2006, Felix Wintle explains why he believes active investing will be more important than ever. In the video Felix discusses: The rising cost of capital and its […]
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