LPO India-now and future
October 20, 2008
The offshore industry of India is plagued by different issues and we have discussed a lot of them in our previous discussions. The situation in not better yet and there is bleak chance that it will recover soon—a long-term potential and perspective is what industry experts are relying on. At the same time, legal process outsourcing (LPO) companies are hiring a good number of new professionals because of the demand of litigations services from the USA is on all-time high. It is calculated that by outsourcing their legal and litigation back-office work to Indian vendors, US companies can save about 70 per cent in costs, which is quite considerable and demands much analysis of the future of this industry.
The hiring spree among the Indian LPO companies is quite big—it is expected that with a period of 6-12 months, many Indian companies would be doubling their strength in order to withstand the increase in work from USA. One point here needs some mention of something that we discussed earlier—LPO of India again seeks its most potential from US and not from other countries of Europe or South American countries. However, at present, the potential of LPO industry of India, like IT-BPO sector, lies mainly in US. But it can be easily expected and foreseen that it will grow to different countries. The main thing that Indian LPO companies would need to take care is that they keep their quality of services intact. Like they did for IT industry, they will need to provide peerless services so that companies looking to outsource their legal requirements should feel it all okay to give the work to Indian companies.
To confirm the demand of increase workflow, we take the words of Mr. Sanjay Kamlani, Co-Founder & Co-CEO of LPO firm Pangea3. He has stated: “In the last six months alone, our revenues have risen by over 100 per cent as US companies and law firms seek to outsource work related to electronic discovery and bankruptcy litigations. In order to cater to the incremental volumes, we need to make substantial additions to our workforce.” You and I can well imagine the positive pressure that these LPO companies are facing—no wonder that India need to input heavily on development and recruitment of technical people, infrastructure and policies that can attract continuous flow of business even if the global economy stabilizes. Companies should not expect that the workflow is there because of US meltdown—once companies start depending upon LPO companies in India for their back-office workload, there is need to increase the efficacy of their services and to provide optimal solutions for their needs. There is a demand of vendor collaboration so that companies can outsource all their needs to one vendor and they can extend the needed services from their own pool of collaborated vendors. This, as the experts expect, can boost any BPO company’s image to quite good extent.
The LPO industry in India presently deals in there different categories of services that differ on the basis of work involved. The first one of them is low-end work like record keeping; the second category includes middle-level services like legal advice and HR mobility; and the third category involves high-end legal advisory services. However, as per the present scenario and for some in future, the growth areas for the LPO industry in India are expected to include work in litigation document review services, contract management services, and IP services. So companies who are looking to enhance their appeal for LPO work can concentrate on these areas and make a start leading to the growth and development of their services as and when the time comes.