As mortgage lenders shutter locally, jobs are affected globally.
Over the past few years, many mortgage companies have relied on offshore operations to fulfill a number of job duties, including data entry and customer service.
But with recent mortgage closures, many Indian outsourcing companies are facing the burdening task of redeploying workers.
There have been no reported layoffs yet, but one analyst feels they could be on the way.
Alok Misra, the chief financial officer for outsourcing firm Mphasis indicated that redeployment would be difficult, citing the cost of additional training.
Infosys Technologies and iGate Global Solutions, both based in Bangalore, have redeployed about 50 and 100 employees respectively, as a result of the Greenpoint shut down.
And after First Magnus Financial closed, Mumbai-based WNS Holdings was forced to redeploy 500 employees.
First Magnus was one of the outsourcing firms’ top 10 clients, and could prove to be a major blow for the company if another project doesn’t fill the gap.
The full extent of the damage will not be known until the dust finally settles, which may not be for several months, years, or even longer.