Key Findings & Highlights:

Infosys entered the BPO business in 2002 with a joint venture, Progeon, with Citibank Investments. Progeon was originally 26% owned by Citibank and 74% by Infosys. In 2006, Citibank's share in Progeon was acquired by Infosys, and it was renamed Infosys BPO. Since then, Infosys BPO has added other clients, primarily from Infosys' ITS clients.

Infosys entered the mortgage and loan (M&L) BPO business in 2003 with a client, Greenpoint Mortgage. It had decided to enter the M&L BPO business to "buck the trend" and pursue a line of BPO business that was data entry dependent, rather than voice dependent. Infosys started with origination services including underwriting support, fulfillment, and some call center support.

Over time, Infosys added other underwriting mortgage origination clients. During the banking crisis a number of these clients were lost, including Greenpoint, which had merged with WAMU. After the crisis started, Infosys spent 18 months rebuilding the M&L BPO business.

Infosys' M&L BPO services are delivered out of its BFSI (banking, capital markets, and insurance) BPO unit, which has (as of Sep 30, 2014):

• Revenues: 29.1% of all BPO revenues
• Employees: 5062 (30,578 employees in overall BPO)
• Clients: 57 (145 clients in overall BPO).

Delivery Capabilities

Infosys M&L BPO delivers services from five delivery centers, to support the U.S., Canada, U.K., and Australia. The centers are as follows:

• Bangalore
• Pune
• Jaipur
• Salt Lake City
• Denver.

Target Markets

Infosys' primary targets for M&L BPO are:

• Tier one and regional banks headquartered in the U.S., Canada, and Australia
• U.S. based mortgage servicers
• Commercial mortgage lenders
• Loan portfolio investors.

Strategic Direction

Infosys has focused on mortgage administration, a stable but low margin business. It was able to expand its administration services business over time, and recover from the financial crisis, by focusing on processing efficiency and offshoring to reduce client costs.

Infosys has expanded its M&L BPO capabilities over time, from data entry to loan maintenance, and then to default management and origination services. Over time, Infosys has expanded its M&L BPO services to work with mortgage service providers, supporting their efforts to outsource processes which clients did not want to retain. These processes initially included loan servicing, and later default management. Recently, Infosys has expanded its M&L BPO client base to include regional lenders which want to outsource both platforms and processing.

Infosys is now targeting the establishment of platform based BPO services in both the U.S. and Europe. The targets for this type of offering will be local lenders such as community banks in the U.S., and building societies in the U.K. Finally, Infosys is targeting mortgage servicers, to support their loan portfolio acquisition requirements, which need to scale up processing capabilities very fast as they buy new portfolios.