Thursday, September 16, 2010

LPO - the hot new trend in the legal field

LPO is the hot new trend in the legal field that allows law firms and corporations to obtain operational support and services from outside providers rather than internally. This process has demonstrated huge growth in the past few years within the United States and the UK, and offers a unique path for companies to get the services that they need, including document review, legal research, patent services, and drafting of pleadings and legal briefs.

Countries like India and the Philippines have proven to be very successful in this area, offering their services to anyone who needs them. The main purpose of legal process outsourcing is to cut costs dramatically and have the same quality of work done for less money. So far, it has been a successful endeavor.

2 comments:

  1. Yes, Legal Process Outsourcing (LPO) does cut cut costs dramatically. It can lead to savings of up to 50% or much more. As The New York Times reported: “The reason for the shift [to outsourcing legal work] echoes the reason companies are sending other work abroad: they save substantial amounts of money. Some companies say they can reduce certain legal costs by as much as 50 percent, and receive work that rivals what they can obtain in the United States. According to Dennis Archer, the President of the American Bar Association, ‘The need to cut costs reaches across many departments, so it should be no surprise that it goes to the legal department as well.’” The financial benefits of off-shore legal outsourcing can be seen not only in the obvious differences between salaries and costs of living among the workforces of the U.S. and India, but also in the cost of office space, which is ultimately paid for by a law firm’s clients. Many law firms locate all or most of their personnel in relatively expensive offices in the largest cities in the United States and the United Kingdom. This has led to a situation where much of each dollar or pound that these firms charge their clients pays for office rent. In Mysore, India, for example legal outsourcing employees work in state-of-the-art facilities at 1/43rd the cost of comparable space in major U.S. cities. This is a major part of the way that an LPO can keep its promise to clients that they are paying for legal services, not real estate.

    Padmavathi Shanthamurthy
    SDD Global Solutions
    High-end legal outsourcing

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