Fitch To U.S. CMBS Servicers: 'Don't Toss It Over The Fence'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- While outsourcing certainly has benefits to the U.S. CMBS CMBS See: Commercial Mortgage Backed Securities servicing sector, companies should keep their core competencies in-house in case the quality of the outsourcing work is not up to par, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. after a recent visit to six US-based outsourcing organizations in cities throughout India. A commonly used outsourcing industry expression is 'don't toss it over the fence', which means do not outsource a function and then assume the process will work without oversight and control. Without this practice it is impossible to adequately insure the quality of the work performed. And while outsourcing certain servicing functions to India can offer 'affordable quality' to the CMBS servicing arena, emphasis needs to be placed on both words, according to Managing Director Stephanie Petosa. 'The biggest mistake a CMBS servicer can make is having cost savings as the sole reason for outsourcing,' said Petosa. 'Outsourcing only really saves costs if the final work product does not lose revenue, does not lose the company business, and does not damage the company's reputation.' Servicers should perform thorough due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. of a prospective vendor if outsourcing to a third party, then develop a comprehensive plan for monitoring ongoing performance, and a contingency plan should the outsourcer suddenly cease operations. With these areas of focus in place, 'successful outsourcing, or affordable quality, can be accomplished and is already being found in many instances in India,' said Petosa. 'Affordable Quality - Outsourcing CMBS Servicing to India' is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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