Legal outsourcing is changing the legal industry because the term outsourcing has far exceeded its restrictive definition. The concept of outsourcing certain functions is not new in the business world, but it is quite new in the legal industry. The LPO seems to be reserved only for the largest in-house legal departments of the largest companies. But it can be a boon for legal departments of all sizes. Because it`s easier to scale an in-house legal team with external vendors, small and medium-sized businesses can rely on external service providers and technology solutions to help them solve their companies` legal problems as their business – and eventually their legal requirements – continue to grow. “Big Law welcomes outsourcing. Not only are more and more companies doing this, but the industry is outsourcing an increasing number of high-value departments, often laying off administrative and operational staff in the process. Decisions carry some risks, but also great rewards,” the report says. India is considered a major destination for legal outsourcing due to its availability of affordable English-speaking lawyers, some of whom are trained in the UK and/or the US, and due to a legal system based on English common law. Recently, new limits have emerged for legal outsourcing in geographies closer to their target client markets. Other established LPO providers are located in Argentina, Australia, China, France, the Philippines, Singapore and South Korea, each offering unique advantages associated with their distinctive geographic location, language skills and regional expertise.
“There is a natural trade-off between the excellent talented and low-cost professionals in India compared to the US and other developed jurisdictions, especially in the area of litigation management,” said Zia Mody, managing partner of AZB & Partners, one of India`s largest law firms. [30] Argentina, for example, is an LPO center increasingly sought after by the United States. Customer market due to its proximity in terms of location in the Western Hemisphere, time zone similarity, and cultural ties to the United States. [31] Sri Lanka is another example of an Indian competitor,[32] whose success is due to Indian politicians` familiarity with British law, a strong economic infrastructure, online freedom and marketing. [33] LPO providers in India and these new frontiers are increasingly using onshore and offshore lawyers in the US and UK as part of their outsourcing offers[34] to create better quality controls, expand their offerings to more sophisticated offerings and create greater confidence in the ethical handling of sensitive client data. [35] High-risk outsourced services include litigation assistance, offshore transaction support, high public interest matters and regulatory affairs. For firms operating in multiple jurisdictions around the world, relying on the expertise of local lawyers may be the best way to ensure that an in-house legal team keeps abreast of local legal developments and does not conflict with local legal practices that could hinder effective resolution of legal issues. There are so many different types of law firms that your firm cannot be an expert in every field. By outsourcing specific legal services to contract lawyers, you can meet all of your clients` needs without having to hire a full-time employee. We do not propose to outsource everything at once.
To minimize complexity and make the transition positive for you, your business, and the people you serve, start with the processes that currently have the greatest impact on your productivity. Clio, Legal Trends Report Clio.com www.clio.com/resources/legal-trends/ Outsourcing legal disputes can help law firms save money and other resources. Instead of using corporate resources, some legal services are outsourced to outside firms, local lawyers or paralegals. With the use of technological tools, all work can also be done online. LPO is not just the sun and rainbows. You need to be aware of the problems that can arise when your legal team outsources some of their legal work. Since there`s so much going on in a law firm, it can quickly start spreading your attention in 10,000 directions. As a result, it can be difficult to focus your attention where it matters most in your business. The goal of outsourcing is to save more time and reduce your costs, maximizing performance and profitability.
This allows you to focus your energy on new and existing customers while an LPO service does the rest. For example, by their very nature, data entry and management tasks are probably best handled by a legal outsourcing company, as not all data entered is in digital form. Breach of confidentiality is one of the main concerns of in-house legal teams when it comes to hiring legal outsourcing companies. Some jurisdictions may have different requirements than your jurisdiction for the protection of privileged or confidential information. The concept of outsourcing legal processes is based on the division of labor principle that prevails in law firms, where various lengthy and time-consuming processes such as due diligence are delegated to paralegals, document reviewers or articling students. [12] This allows the company to respond to the various legal issues that arise on a daily basis while optimizing productivity. If you had asked me how much it cost to start a law firm in 2012, I would have said: $7,810. My boy, I was naïve.
A law firm`s budget requires careful thought and planning – and you need to . Recent changes to the Federal Rules of Civil Procedure, which make electronically stored information such as emails, electronic calendars and voice messages on handheld devices detectable in litigation, mean that the market for eDiscovery services is growing. As the need for eDiscovery services increases, more and more companies can turn to the convenience and cost-effectiveness of outsourcing legal processes. When you report the total number of tasks in your company versus the tasks actually completed, you get a clearer picture of the areas you could outsource. Both the legal industry and the business community in general have adopted a business model that structures profits from non-proprietary assets. For example, Airbnb does not own the majority of short-term rented apartments and homes that it markets for rent. UBER does not own or operate a large fleet of taxi vehicles. These types of business models can reduce liability, overhead, and fixed costs while improving efficiency as the business can grow as a direct result of demand.
