Indian outsourcing firms eye US subprime crisis

0 Comments | AFP, August, 2007

BANGALORE, India (AFP) — Indian outsourcing firms nervously hope the US loan crisis does not deteriorate as the business of processing mortgages in their biggest market dries up and some clients keel over.

Firms such as iGate Global Solutions and WNS that serviced American mortgage lenders are already feeling the impact of the crisis, which a US survey this week called the biggest short-term threat to the world's largest economy.

India's outsourcing industry is now worrying about the crisis impact and a possible slowdown in the US economy on technology budgets of banking, financial services and insurance clients that farm out work to India to cut costs.

"The impact is now limited to individual companies that had a reasonable amount of mortgage servicing...