Plans to invest $5 m in India for increasing headcount, product development and infrastructure
ISGN Corporation, a provider of end-to-end services and technology to the U.S. mortgage industry, is betting on the U.S. residential mortgage business for its future growth. According to Krishna Srinivasan, Chief Executive Officer and Vice-Chairman of the company, many clients, mainly eight of the top 10 banks and lenders, still continued to have a huge portfolio in the mortgage vertical.
During 2008-09 fiscal, the company has shown a growth of 62 per cent with revenue of $37 million.
ISGN, which provides end-to-end solution from Internet origination processing to servicing, is in a position to deliver the product and solution to those banks at a cost competitive price. Today, the company has 350 clients and has recorded revenues of $62 million in the first six months of the calendar year 2010wq. The company has recently converted the accounting year from fiscal to calendar year. ISGN at present has nearly 1,700 employees. It plans to scale it up to 1,900 by the year-end in India and in the U.S. On the mortgage industry, Mr. Srinivasan said the U.S. economy is seeing consolidation within the industry. There is also opportunity for outsourcing the mortgage business to the low cost countries. He feels that with ISGN's comprehensive suite of products and services, lender and financial institutions of all sizes can benefit from a range of services from technology platforms to cost arbitrage and enhanced efficiencies.
ISGN's products include mortgage processing, valuation title and closing and post closing, while serving includes core servicing components, special servicing components such as loss mitigation, home retention and foreclosure. The company's KPO (knowledge process outsourcing), virtually for any back office, is offered in domestic hybrid or global solution sets to meet the clients' specific business needs.
Mr. Srinivasan said the company's equity capital is $90 million and the K. K. Birla Group has invested 50 per cent into the company and the balance is funded by NEA IndoUS Ventures, a venture funding company. ISGN proposes to invest $5 million in the Indian business in the current year for increasing the headcount, product development and infrastructure. As its clients sought to avoid capital expenditure, the company moved its services and solutions into a SaaS/ pay per usage model.