With the changing scenery of today’s technology, more and more companies in the Real Estate related market are turning to offshore outsourcing to complete jobs once performed by U.S. employees. Outsourcing is an arrangement in which one company provides services for another company that could also be or usually have been provided in-house. Offshore simply means “any country other than your own.” Most often those companies on the “outsourcing bandwagon” are reporting lower wages, savings on operational costs such as payroll, administrative cost, utilities and insurance. When companies outsource the idea is to save money if they can keep the prices of their product lower than competitors. However, in the case of title companies outsourcing offshore, in our opinion these companies do not pass on those savings to their customers by decreasing fees or title insurance policy rates.
Be sure that you and your staff are not using a title company that has been searching, reviewing and handling title searches offshore in India, China, Sri Lanka, Manila, Philippines, etc.,. As a Real Estate Broker or Mortgage professional, how do you feel about: Your property located in Tooele, Utah being searched, reviewed and cleared in a third world country by an individual unable to identify the location or the proximity to other Utah cities. This individual is unfamiliar with title issues, easements, encumbrances associated with its location and is merely performing a “data-research” job function. In essence these companies are reducing their minimum title searching standards in exchange for a cheaper search. In order to perform these searches an individual’s personal information is necessary so this information must also be sent offshore. This begs the question about privacy protection and security of personal information. With the rise of identity theft and other personal data scams, it is unclear as to what legal recourse one would have if their information was compromised because of mishandling off U.S. soil.
With so many U.S. and Utah residents out of work and seeking employment, it is difficult to understand why companies would outsource jobs and work to third world countries. In March 2010, Utah reported a 7.2% unemployment rate, and the U.S. overall had a 9.7% unemployment rate. A highly referenced 2002 report by John C. McCarthy with Forrester Research, was quoted as saying that by the year 2017, there would be 3.3 million U.S. service industry jobs and $136 billion in wages would be moved offshore to countries like India, Russia, China and the Philippines.
What can you do to avoid supporting offshore outsourcing and contributing to the loss of U.S. jobs? Are you a Real Estate or Mortgage professional fed up with title vendors that engage in this practice? There’s good news, if you use title companies, such as Inwest Title Services, that perform their own Title Search functions, clearing, policy and secure file storage in Utah, you can be assured that you are not supporting this offshore outsourcing movement. In fact, Inwest Title Services employs over 100 Utah residents at its twelve (12) statewide office locations.
Local Utah banks, credit unions, real estate professionals and builders should be concerned with offshore outsourcing and how it affects the local Utah economy. Economic development, home sales, and general health of the economy are all diminished by companies that outsource Utah jobs. Combined with putting U.S. resident’s private personal information at risk, when a Real Estate Agent or bank makes the choice to use their services, they are compromising not only the security of the data but supporting job loss to U.S. citizens.
Ask your current title company if they participate with searching, clearing and file storage in offshore locations and if the answer is yes, make a wise decision to investigate a safe, Utah title and escrow alternative. Contact Inwest Title Services today for a preliminary title quote and set up your online account for title order and tracking – as well as Instant Fee Quotes for your GFE. www.inwesttitle.com