Vendor Analysis
published on Nov 21, 2014
Report Overview:
This NelsonHall assessment analyzes CSC's offerings and capabilities in retail banking BPO. CSC is one of a number of mortgage and loan BPO companies analyzed in NelsonHall's comprehensive industry analysis programs.
Who is this Report for:
NelsonHall's Loan BPO Vendor Assessment for CSC is a comprehensive assessment of CSC's loan BPO offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for loan BPO RFPs
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of CSC's LOAN BPO offerings, capabilities, and market and financial strength, including:
- Identification of the company's strategy, emphases and new developments
- Analysis of the company's strengths, weaknesses and outlook
- Revenue estimates
- Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
- Analysis of the company's offerings and key service components
- Analysis of the company's delivery organization including the location of delivery locations.
Key Findings & Highlights:
Prior to 1990, CSC provided BPO services to banks for credit compliance and credit insurance; CSC entered that business with a highly automated service, which relied on understanding a bank's IT environment. At the time, CSC did not consider itself to be in BPO services, and BPO was not a priority for it.
CSC entered the loan BPO business in 1990; in the early 1990s there was a banking crisis, which created many distressed real estate assets (primarily commercial real estate). At that time the U.S. government, primarily via Resolution Trust Company (RTC), acquired distressed assets and distressed banks to manage recoveries on those assets. RTC required private sector help to manage the very large volume of assets; CSC acquired Logic Inc. in 1990 to pursue the RTC business as a BPO line of business.
Over time, CSC refocused its banking BPO business, as RTC was wound down in the late 1990s, away from government clients to private sector clients. Specifically, CSC's outsourcing strategy for banking now focuses on delivering services as a third party loan servicer via SaaS and BPaaS. CSC is currently focused on consumer loan BPO and backup services for securitized portfolios.
Delivery Capabilities
CSC delivers dedicated loan services from three primary delivery centers:
- Irving, TX: 180 FTEs
- Noida: 10 FTEs
- Vadodara (West coast, India): 50 FTEs (data entry).
CSC delivers common services from three primary onshore delivery centers:
- Irving, TX
- Nashville, TN
- Blythewood, SC.
Target Markets
CSC's primary targets are North American banks:
- Tier one banks: half of existing clients and a core target audience of CSC solutions
- Community banks: for access to latest functionality and low cost of delivery
- De novo auto lenders and finance companies: for access to latest functionality and low cost of delivery.
Strategic Direction
CSC has built on its 30 years of experience as a software vendor and IT outsourcing provider to the retail banking industry, to drive its loan BPO business. Since 1990 CSC's loan BPO business has waxed and waned as industry conditions and participants have changed. Over the past 25 years, CSC has retained and built its domain expertise and adapted to changing client requirements.
Today CSC has a consumer loan BPO business which is primarily built around auto loans; this remains an underserved market by BPO vendors, allowing CSC to offer clients third party support with domain expertise, supported by the its financial strength.
