E-Loan has launched a pilot program for its home-equity-line customers, allowing them to choose whether they want to send processing work overseas or keep the work in the U.S. And with the U.S. Senate's recently approved legisaltion preventing tax money fWhen online lender E-Loan Inc. said it would use processing agents in both India and the United States, it may have signaled a need to disclose how its work is managed. Pleasanton, Calif.-based E-Loan last month launched a pilot program for its home-equity-line customers, allowing them to choose whether they want to send work to India via outsourcing firm Wipro or keep the work in the U.S. If the work is sent offshore, E-Loan shaves two days of processing time compared to the 12-day U.S. process. Call-center workers, who need to handle the nuances of personal finance, remain in the U.S. "Some companies are deceiving customers by pretending that offshore workers are on the West Coast," says E-Loan chief executive officer Christian A. Larsen. "I think you have to do offshore and you have to disclose it. Consumers can decide for themselves."
Whether other companies will follow E-Loans move is unclear. Nevertheless, technology executives need to consider what they would have to do behind the scenes to follow suit, says Amit Maheshwari, president of I-Vantage, a Cambridge, Mass., company that helps firms set up operations in India.