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LPO can save upto 70% of your litigation costs

October 22, 2009

In 2006, a series of amendments to the Federal Rules of Civil Procedure made it mandatory for companies to preserve and present electronically stored data for litigation purposes. KPMG estimates that first level document review costs anywhere between 58% and 90% of total litigation costs. In order to comply with the changed rules, US companies are working overtime to identify strategies to control and reduce these costs, thereby turning document review into a huge opportunity ($30 to $50 billion) for Indian LPO vendors.

At present, the 60-odd Indian vendors that offer document review services capture only 3% to 4% of the global market, according to Value-Notes, a Pune-based consultancy in business intelligence and research. Legal support accounts for nearly 30% of the global legal services market, of which a bulk, nearly 70% is still with local providers. Cost advantage in outsourcing however is so attractive that many of these law firms are now actively reviewing their current arrangements.

Current estimates identify that first level document review can save clients well over two-thirds of current domestic litigation costs, according to Dario Olivas and Michael Dolan of Tuscar Group. The Value-Notes survey also estimates that while a US law firm typically charges $200-350 per hour; and other service providers in the US charge $50 to $100; with a contract review attorney charging $35 to $80; offshore legal service providers charge merely $10 to $30 for the same service. It’s primarily on account of this cost advantage that interest and demand is for first level document review is increasingly growing US companies looking for greater economies and efficiencies in their documentation management.

Take for instance, the Health Insurance Portability and Accountability Act (HIPAA) of 1996 that makes several sweeping changes in the practice of maintaining electronic health records. In general, the guidance urges companies (including health plans, healthcare clearinghouses, and those healthcare providers that conduct financial and administrative transactions electronically) to develop and implement business practices that protect the privacy of health information, including oral communications. No sooner was the HIPAA passed, companies began massive investments in their electronic databases, opening another window of opportunity for offshore providers.

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Written by Radhika · Filed Under LPO Blogs 

Comments

2 Responses to “LPO can save upto 70% of your litigation costs”

  1. uberVU - social comments on October 25th, 2009 8:59 am

    Social comments and analytics for this post…

    This post was mentioned on Twitter by OutsourceBlog: LPO can save upto 70% of your litigation costs http://bit.ly/6Sbi3…

  2. bpo101 on October 25th, 2009 10:47 pm

    The site is very informative. Continue posting.

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