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72 It should go without saying that today's servicers need to be efficient, flexible, and nimble in their operations, more so now than ever. Between new regulatory rules and guidelines, low rates, and an increase in defaults and loan workouts—all factors being driven by COVID-19—the challenges for servicers have arguably never been greater. To deal with these challenges, many servicers are likely to look toward business process outsourcing, or BPO. ey'll find tons of choices. In fact, the sheer volume of tasks and processes that can and are being outsourced has grown tremendously in recent years, especially since the pandemic, which accelerated a long-term trend toward utilizing remote labor. However, there is another type of "BPO" available to servicers that is lesser known but much more powerful. And its advantages are providing sweet music to servicing operations. UNDERSTANDING ORCHESTRATION In the typical BPO relationship, a third party provides a certain technology to help servicers automate a specific process. Business process orchestration, on the other hand, involves a broader view, in which automation is not siloed within individual teams and processes but rather integrated throughout the company. Similar to the way a symphony orchestra performs a musical arrangement with woodwinds, brass, strings, and percussion, business process orchestration enables organizations to work better together through automation. Business process orchestration generally takes the shape of blended digital and automated processes working cohesively with people managing the appropriate controls. Servicers can achieve orchestration in their servicing operations by gaining access to digital platforms that connect to their legacy systems and create a more data-driven approach to servicing and generate greater efficiency. Interestingly, business process orchestration—sometimes referred to as workflow orchestration—is a popular concept in other industries, where it has been proven to improve efficiency and results. It's relatively new to the mortgage industry, but that's likely to change as the limitations of a fragmented approach to technology become more evident as industry challenges mount. Because business process orchestration is still relatively new in our business, there is some misunderstanding about the term. Many assume that orchestration is the same thing as automation, but orchestration refers to the overall strategy—how all of a servicer's automated tools, processes, and human staff work together. It's helpful to think of orchestration as an enterprise- level solution rather than something designed to tackle one or two processes within one's operations. Business process orchestration can vary greatly, but some sort of automation and digital process is key. At the end of the day, it's about eliminating inefficiencies, and the only real way to do that is to combine truly functional, automated digital processes with human effort overseeing internal functions that can't be automated. Both pieces work in harmony to lower costs and accelerate growth. WHAT HOLDS SERVICERS BACK It's hard to fault organizations for having trouble grasping this concept. It's quite common for servicers to have a narrow approach toward automation because they tend to zone in on problems they feel need to be solved immediately. As a result of this behavior, however, many servicers wind up with technologies that solve only one of their problems or pain points and must continue to invest in new technologies as new problems arise. ey also often find themselves stuck with redundant technologies. Feature By: Roshan Sethi FOR SERVICERS, ORCHESTRATION CAN BE SWEET MUSIC Similar to the way a symphony orchestra performs a musical arrangement, business process orchestration enables organizations to work better together.