Big Help: Greenpoint Relies On Offshore Outsourcer

Indian outsourcer Progeon Ltd. is a key part of Greenpoint Mortgage's strategy to attain the flexibility it needs to launch a new loan product every three weeks. The 2-1/2-year-old relationship offloads several routine tasks, letting Greenpoint staff focus on its more-innovative efforts.

The Progeon deal has grown to incorporate 250 customer-service representatives in India. Progeon's parent company, Infosys Technologies Ltd., performs software development and business reengineering for Greenpoint.

The relationship illustrates the benefits as well as the pitfalls of offshore outsourcing, says Greenpoint chief technology officer David Rogers. Customer-service workers in India have language skills and education comparable to their U.S. counterparts, but they command lower salaries.

India's universities churn out large numbers of software engineers to serve the needs of U.S. companies outsourcing their programming work there. Dual T1 circuits connecting Greenpoint's Novato, Calif., headquarters and other U.S. locations with Progeon virtually eliminate the possibility of service disruptions.

As Indian outsourcing companies earn greater profits, however, their labor costs are edging up. Workers are typically a year out of college and work night shifts, Rogers says. They perceive that better opportunities exist and are getting harder to attract and retain, he says. "It's somewhat similar to the dot-com phenomenon."