Growth of Legal Process Outsourcing

February 5, 2009

Legal Process Outsourcing, LPO is a growing trend among US and UK companies for the past couple years, now with the current global recession, business mergers and Bankruptcy filings accelerated the growth of LPO to countries like India, Philippians, South Africa, etc.
The democratic controlled US Congress and President Obama’s White House will put new regulatory policies and legal requirements on the major US corporations which will create more legal work for US companies and  this fill further fuel the growth of LPO services. The legal cost for attorney’s fees and paralegal professionals is also playing a vital role in companies seeking help from offshore LPO vendors. Lawyers in US charge from $50 to $1000 for an hour and in offshore locations the legal professionals fee ranges from $10 to $50 for an hour. Of course, the $1000 rate is for lawyers those who have specialized skills and those jobs will stay in US at least for now, but the $50 legal jobs are being outsourced to offshore locations. As you know the hourly rate is not the only cost LPO vendors has to incur, they need to have US trained lawyers manage the work done by the offshore legal professionals. With all the expenses, LPO firms are charging on an average of $30 per hour, which is significantly lower than the US average.

Though LPO firms can offer higher value LPO services at present mostly lower value LPO work has been outsourced due to LPO industry maturity and very few LPO companies are offering the services. Most of the offshore LPO vendors are trying to figure out how to market their services, Is it the labor arbitrage they can offer to their customers or can they offer strategic value to their customers through higher-end Legal services? At present labor arbitrage is the main motivation for customers to seek LPO vendors and marketing it works well for several small LPO vendors like AZB & Partners, Lawwave, etc.

Following are the services most of the LPO vendors are offering:

  • Contract Management
  • Legal Document Review
  • Preparing Deposition Summaries
  • Litigation document management

However, like BPO, as the LPO industry matures more offshore vendors will start offering higher value legal services like:

  • Legal Research & Analysis
  • Patent Drafting
  • Legal Auditing
  • Contract Drafting

One of the major concerns for the US and UK companies to use offshore LPO vendors is offshore security and confidentiality of their customer’s data in offshore locations. Though several LPO vendors like Quislex, Mindcrest etc, have ISO/IEC 27001:2005, Information Security Management certification (ISM) and ISO 9001:27001 Quality Management System (QMS) certification, still it is one of the major concerns for companies to embrace offshore LPO. Also issues like Satyam scandal will definitively affect LPO growth in US and UK.

While the global recession is hitting hard on several companies including offshore outsource vendors, LPO market is reaping all the benefits as the companies want to cut down cost by outsourcing their legal work to lower wage countries. Recent survey suggests that US companies will spend $2 Billion by 2013 on LPO, LPO vendors who have good marketing team and address customer’s security and confidentiality concerns can gain significant market share for the next several years.


Comments

32 Responses to “Growth of Legal Process Outsourcing”

  1. SBL on February 6th, 2009 4:52 am

    Thanks for this great post…
    Regards,
    SBL

  2. thirunavukarasu on February 6th, 2009 6:47 am

    i am a partner in law firm in India.I would like to know how to source work from U.S. AND U.K. The office has good team of lawyers in chennai ,india to do the LPO.i would like to know how to go about to start the LPO in our office and source work .
    thiru
    advocate
    9444012986

  3. Business Process Management on February 7th, 2009 6:18 am

    well this is incredible growth.

  4. Mani on February 8th, 2009 9:54 am

    Hi Thiru,
    The best way is to partner with other LPO companies in India to get jobs from them. It will be difficult to source work directly from US and UK customers without having a marketing team working for you.
    -Mani

  5. Swastik kulkarni on February 15th, 2009 7:38 am

    Hi. In my friend circle, there lawyers & mba graduates. And we are planning to set up an LPO. would you please walk us through the process of doing so?

  6. 100 top BPO on February 20th, 2009 5:43 am

    Good post,thank you

  7. Tester on February 27th, 2009 9:37 am

    I think its a great post. LPO will be the next upgrowing sector having more and more jobs in the time of resession.

  8. Taylor on April 28th, 2009 8:53 pm

    I noticed that this was a big deal. I am a lawyer looking to outsource, and I recently got a phone call from a company called Fronterion that is helping get into this market. It is an interesting concept I think. Great Post

    Thanks,
    Taylor

  9. Jason Philip on May 20th, 2009 1:27 pm

    I am in the business development team of our LPO division. I just wanted what would be some proper approaches for marketing LPO and as mentioned in the article that US will spend 2Billion on LPO vendors so the buisness that is coming is mostly from Law firms or companies..

  10. Rj on May 21st, 2009 8:45 am

    Jason,
    Not sure where you are physically located, if you are outside US then use web marketing to promote your LPO services. Have a good web site with your LPO client testimonials and use SEO techniques so that you web site will come in top Google searches. You need to target individual home based business customers to grow your LPO services and then move to small business customers.

    -Rj

  11. LPO Marketing on May 22nd, 2009 5:24 am

    If you do not have a physical presence in US or UK then you can hire marketing companies to market your services. Without physical presence it will be very difficult to get higher value LPO projects

  12. LPO on May 28th, 2009 11:52 pm

    Law firms across the world can significantly gain from offshoring legal services to India. Besides savings, these legal services will also provide a gateway to well experienced legal experts in India.
    Regards,

    Legal process outsourcing (LPO)

  13. G.B.Poornima on June 3rd, 2009 6:12 am

    Dear Sir,
    i am poornima. i studied L.L.B. (5 years) in andhra university and got 58% of marks. and practicing as an advocate since 2007. now i am interested to work from my home. some body suggested me to go for LPO s. can you give me full details of this LPO s and career in this field. how to register my name in that. how to get work from companies.. i am well aquanted in legal drafting. can u show me some path to work… thanking you.
    poornima

  14. user on June 4th, 2009 12:02 pm

    Hi poornima,
    Checkout web sites like Elance where you can register yourself as a LPO provider and offer your services to the clients. This allows you to work from home to begin with and then if you want you can expand your services.
    Good Luck.

  15. jagadish. R on June 7th, 2009 12:44 pm

    iam legal practitioner at Hyderabad since 22 years . now i am interested to work from my office. i want to go for LPO s. can you give me full details of this LPO s and career in this field. how to register my name in that. how to get work from companies.. and scope for the LPO and the method to face the challenges in the said field. thanking you.
    jagadish

  16. Anshul Agrawal on July 20th, 2009 6:44 am

    I am law graduate. we are planning to set up a LPO. In my team Chartered Accountants , Lawyers, MBA , B.Tech and other professionals are there. Some big names in business class were also there. Please could you suggest me from where it has to be started and what is the procedure to setup a LPO?

    Thankyou

    Anshul Agrawal

  17. Raj on July 21st, 2009 3:44 pm

    Anshul,
    You should try to partner with already established US, UK based LPO vendor to begin with. Without a marketing team working for your company it is very difficult to get LPO work directly from US and UK.

    Raj

  18. The long and winding road before Indian LPOs | Outsource Portfolio on August 5th, 2009 9:58 am

    […] benefit’ of outsourcing legal services amongst law firms is not addressed, it could stunt the growth of the Indian LPO industry,” says one expert, which could be one reason why in the final analysis, only 3% of law firms in […]

  19. Prita on September 2nd, 2009 5:35 am

    Hi All,

    I have done 5 years LLB Integrated course and have established an Independant practise as an Lawyer with High Court , Nagpur.I now want to venture out into LPO segment and was looking forward for working from home to start with.

    Does Anyone have any information about the LPO vendors providing “work from home” ?

    Rgds,
    Prasad

  20. Amitabh Biswas on September 4th, 2009 8:46 am

    Hi,
    This is Amitabh from India Kolkata, i have centre with 100 seats available wants to start LPO process. How can i start and from were i will get the directy contact of the client so that i can start asap.

  21. Mr. Rakesh Baruah on October 5th, 2009 2:32 am

    We are a law firm and want to deal with LPO, how we start it.

  22. y.karishma chowdary on October 12th, 2009 5:30 am

    Hi,
    i want the detailed information about how to start a lpo.please, i think i can get the required information.

  23. geetanjali on January 24th, 2010 12:47 pm

    hi i am a fresh law graduate.
    i have done an internship with Indian Council of Arbitration and now i am looking forward to enter into L.P.O work.
    firstly i want to register myself with some already established organisation to get work to be fulfilled from home.
    Can you please suggest me some big names to register myself .
    i be really very thankfull to you all.

  24. sunita on March 31st, 2010 2:19 am

    Dear,
    I am Sunita Gole from Akola. I am currently running the call center training institute. I am planning to start training for L.P.O. I have all set up. I want to know what should be criteria for training? and will it be possible to tie up with any L.P.O. for placement??

    Thank you
    regards,
    Sunita

  25. vipul on April 3rd, 2010 7:08 am

    i am intrested in financial work of outsource from UK or Others country for complite book keeping of very lower rates

  26. Pramod Kumar Singh on April 6th, 2010 3:04 am

    I am practicing Company Secretary, based at Jamshedpur, Jharkhand , in India and whis to set up legal process industry in jamshedpur as manpower cost is low compared to metro cities and other tier 2 cities. I would like to be associated with existing LPO in india. In my team 4 Company Secretaries, 3 Chartered Accountatnts and 6 Lawyers.

  27. N.NAGESH on May 15th, 2010 4:23 am

    I am interesed to join with LPO busienss firm as a partner i am having law firm at Bangalore

  28. N.NAGESH on May 15th, 2010 4:26 am

    i am interested to joing with LPO business firm as a partner at bangalore

  29. thilaka on November 12th, 2010 1:27 pm

    hello i am thilaka, finished B.A.B.L in 2004 and MBA 2008 . i want to work from home (in LPO or related field on my graduation) can you pls send some links for guidence.

  30. Adv.Varsha on March 28th, 2011 6:27 am

    Hi,we are 3-4 lawyers are very much interested to do legal outsourcing work from our office. we are experienced in legal field,practicisng since 2001 at pune district court,pls let me know how to get work from us uk.

    Thanks &Regards
    Adv. Varsha

  31. Dheeraj on May 7th, 2011 2:53 am

    The legal outsourcing industry is similar to the IT outsourcing industry in the early 90’s where there were a lot of software companies sourcing work from the United States. We provide legal outsourcing services at competitive rates providing the services in the field of Personal Injury, Employment an Labor Law, Immigration Law, Environmental Law, Family Law, Criminal Law and Medical Malpractice. See
    http://www.unicitaconsulting.com
    We also provide high end legal services in the field of Intellectual Property law – Patent Search, Patent Drafting and Filing in India and in the United States via our foreign associates, Patent Prosecution and IP Litigation. See
    http://www.unicita-consulting.com

  32. Brown on May 7th, 2011 2:59 am

    I was looking to outsource legal work to India and came across this firm Unicita Consulting Private Limited who have been in the industry for over 5-6 years. I am extremely happy with the quality of work they provide helping me cut costs significantly

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