The Hindu Business Line : GreenPoint deal to fetch iGate $20 m over 5 years

iGATE Global Solutions on Monday announced a five-year $20-million deal to help create a virtual enterprise for the US-based GreenPoint Mortgage by offering high-end back office services.

The deal, involving a combination of technology services, back office processing, high-end analytics and call centre operations, will help GreenPoint improve its efficiency, cut sales costs and generate business by analysing customer data, said the iGATE CEO, Mr Phaneesh Murthy.

"iGATE's high-end analytics team in Bangalore would use the US consumer database to slice, dice and profile them according to their buying patterns and based on their past transactions and thereby offer products and if accepted, even take credit decisions," he added.

"In all probability, iGATE would be the first third party company to do credit decisioning for US customers from India," Mr Murthy said. The deal, which revolves around the transaction-pricing model, would entail an aggregate cost saving of 25 per cent for Greenpoint, he added.

The transaction-based pricing suits both iGATE and GreenPoint as it helps better process improvement going forward. The first phase, $20 million deal, has a significant potential to scale up further, he added. iGATE, initially, plans to set up a separate team of 150-200 people over the next few months to service GreenPoint.

GreenPoint Mortgage, the sixth largest player in the US, focuses on speciality mortgage loans, launching a new product every 21 days. The company currently has an engagement with Progeon, the BPO subsidiary of Infosys. Greenpoint's new deal with iGATE will not have any overlap with that with Progeon, Mr Murthy said. The deal with iGATE involves lot of functions relating to loan origination, while the one with Progeon involves servicing of those loan accounts.