MOST SHARED
- European Shares Seen Lower; Greece Worries Markets
- Beware Hidden Costs as Banks Eye ‘Grexit’
- Why Are Greek and Italian Politicians So Bad?
- Don't Fall for Cheap, Debt-Laden US Stocks: Expert
- India Warns EU Over Airline Carbon Tax
- Australia Approves Migrant Workers for Mining Projects
- New Zealand's Christchurch Hit by 5.2 Quake
- New Google Tablet Set to Defend the Android Market
- Taiwan's Yuanta Ends $1.25 Billion Bid for Carlyle-Backed Bank
- AirAsia in $4 Billion Talks for 50 Airbus A320 Jets
- Top 20 European Stocks for Crisis Time: Strategist
- Big European Funds Confirm Dumping Euro Assets
- Is 'Equity Cult' Dead? Stocks Most Unloved in 50 Years
- Both Campaigns Seize on Romney’s Years at Bain
- Markets May End Week Quietly, With Wary Eye on Europe
- Don't Fall for Cheap, Debt-Laden US Stocks: Expert
- Now Is the Time to Buy Chinese Stocks: Goldman Sachs
- Beware Hidden Costs as Banks Eye ‘Grexit’
- Europe's 2 Biggest Politicans Get Back to Home Fronts
- Curt Schilling's Video Game Company Goes Bust
- Time for Flash Sales to Adapt or Die
- What Flash Sites Are Suggesting About Consumers
- Hewlett-Packard Faces a ‘Dogfight’ for Talent: Analyst
- Laouchez: Leadership in Financial Services — Missing in Action?
- DuckDuckGo Cooks Google’s Goose: Analyst
- Growing Sub-Prime Auto Loans - New Troubles for Automakers?
- General Electric’s $4.5 Billion Dividend Slated for Buybacks
- Kuntz: Finding Opportunity in Emerging Markets
U.S. Subprime Crisis Hits Indian Outsourcers
Text Size 
Indian companies that process U.S. mortgages are reporting fewer work orders and diminishing revenue because of the subprime loan fallout overseas.
Several companies have moved employees once assigned to mortgage documentation and related services to other areas. There is a fear of layoffs should the crisis in the United States continue.
As U.S. lenders tighten credit or close down, the volume of paper work done by Indian outsourcing companies declines because of fewer applicants and fewer loans.
"There are likely to be staff cuts, but companies will first try and redeploy them toward other services," said Rishi Maheshwari, an analyst at Networth Stock Broking.
Mumbai-based WNS Holdings [WNS
Loading...
()
] is in the process of redeploying 500 of its staff after one of its top 10 clients -- First Magnus Financial -- filed for bankruptcy in the U.S.
Bangalore-based Infosys Technologies [INFY
Loading...
()
] and iGate Global Solutions have also redeployed about 50 and 100 staff respectively due to the winding up of their business with GreenPoint.
iGate said the share of mortgage processing in its total revenue fell from 10 percent to about 7 percent over the past two quarters because of "negligible contribution from GreenPoint."
Bigger companies such as Infosys Technologies say they do not face much downside as mortgage processing forms a very small part of their business.
"There will be some impact on us, though minimal, maybe less than a million dollars," said Amitabh Chaudhury, who heads the company's business processing unit.
The full impact will be "clearer in the next two to three months" once U.S. companies complete their year-end budget evaluations, Maheshwari said.
Some companies feel redeploying staff would be cost prohibitive.
Chief Financial Officer Alok Misra at Mphasis indicated his company might be forced to cut some jobs. "Redeploying staff ... is costly as it involves retraining," Misra said.
Mphasis, based in the western Indian city of Pune, is majority owned by EDS of the United States.
- The government wants help for its investigation into the mortgage backed security fiasco of 2008.
- Where do the happiest and most optimistic of Asian millionaires live? Click through to find out.
- These athletes are notable for brief moments in the sun and leaving their fame on the field.
- China has been ramping up investments around the world. Here’s a list of the top ten countries.
- Is there a Machiavellian scheme to create a United States of Europe? Patrick Allen looks into it.
- Now you can eat your way across America all year long, from one sizzling bacon festival to another.
Data is a real-time snapshot *Data is delayed at least 15 minutes
