The declining fortunes of the consumer in the US, and increasingly the UK, are proving to be a boost for India’s outsourcing industry, with some leading operators gearing up to increase the size of their debt collection and recovery units.
Firstsource, an Indian business process outsourcing company that handles credit recovery for most of the top five US banks and half the top 10 credit card issuers, said it was increasing staff numbers to win business from growing credit card defaults in both national markets. Overdue accounts at the six large US credit card issuers increased in June on the back of rising unemployment, food and fuel prices. The worst affected issuer in June was American Express, with loans overdue by 30 days rising 16 basis points to 3.21 per cent. Firstsource is predicting the situation will also worsen in the UK.
Source: Financial Times
BIIA Newsletter September 2008 Issue