LPO- A BEST STRATEGY
“The Legal Process Outsourcing business is a high growth segment and is currently pegged at US$ 3-4 billion” by NASSCOM
Transfer of Legal Business Function to an external service provider is Legal Process Outsourcing, and at present is viewed as an industry in itself.
The law firms or organizations obtain legal support from distant places like India and job is performed efficiently and cost effectively. Because of availability of world-class resources and proficiency, the American and European law firms are setting up shop in India.
The legal outsourcing segment holds significant market potential. This field of outsourcing is more about knowing how to research, analyze, and write rather than knowledge of any specific law.
LPOs in India offer a broader range of value adding services like: Legal Research & Drafting, Transcriptions, Deposition Summaries, Contract & Document Reviews, Due Diligence Services, Court Briefs, IP Services which include Patent & Trademarks application drafting & Prior Art Search.
Standard users of Legal Outsourcing Services in India are mainly: Law Firms, In House Counsels, Attorney, Legal Research Firms, and Organizations.
Due to the changing Global Economic Set-up, LPO´s becoming a major competition sector in the market. The sector is growing everyday due to the quality work performed by the highly skilled and procedurally trained attorneys.
India-Key Destination for Outsourcing:
Reasons of considering India as a key destination for outsourcing because it provides the core benefits of: Quality, Cost, Time, Security, Technology & Language.
QUALITY: LPOs in India gives high Quality Assurance, Integrity, Authentication and Supervision. India has proven that they can deliver the same quality, thus it further enhancing and enriching their services and expanding their market. The Quality certifications are in following different forms:
- International Standards Organization (ISO) 9000 Series
- Six Sigma Methodology
- Capability Maturity Model
- E -Services Capability Model
COST: India´s legal services are affordable and cost up to 80% less than the US firms. Outsourcing legal services to India Pricing levels vary across the nature of services delivered. For a high end services, law firms charge $ 250 and for low end they charge $8-10 per hour, but in India its $40-60 and $1-2 respectively for these services. An average Indian lawyer monthly income is equivalent to few hour fees charged by an US attorney. The different pricing methods are being adopted by LPOs in India like:
INPUT- BASED SCHEMES
- Per hour basis
- Manpower basis (FTE)
- Virtual Captive Center
OUTPUT- BASED SCHEMES
- Transaction Fees
- Pay per Unit
- Project Based/Flat fee
- Retainer ship fee
TIME: Another great advantage is in the form of the time zone. Most LPO units in India are reported to be staffed 24/7 and thus offer round the clock legal support to law firms.
SECURITY: Security and Confidentiality of the data is the major concern of US law firms. The LPO Service providers take various measures to maintain proper security of client´s data like
- FTP (File Transfer Protocol),
- VPN (Virtual Private Network)
- VOIP (Voice Over Internet Protocol)
- Inhouse physical Security and
- Disaster Management.
Confidentiality is indispensable for legal work this aspect totally looked up by Indian firms.
TECHNOLOGY: India has made rapid gait towards good information technology and technological competency in LPO sector and the same are in India´s favor. Service providers in India use advanced means of communication and high-class infrastructure for legal Analysis and Document Reviews. LPOs are using high quality e-discovery tools and World´s Leading like Westlaw and Lexis Nexis databases for Legal Research.
LANGUAGE: India has large and highly skilled work force with strong English language capabilities.
The key concern among corporations world over is the reduction of costs but not at the expense of quality. There are other advantages that vendors located offshore are able to provide to their clients in terms of Security, 24x7 online client assistance, and above all availability of skilled man power.
India has large pool of attorneys with US/UK qualifications which are Familiar with common law doctrines. The Indian Law Schools provide high level of quality education with analytical interpretation the Laws and Regulations of on the similar legislations of other similar legal systems.
Key Services: The major areas of US Federal and State Legal Systems like Banking Laws, Bankruptcy Law, Civil & Commercial Laws, Family & probate Laws, Tax Laws and Intellectual Property Laws being outsourced to LPOs evolved from low end services like transcription, secretarial support, typically performed by paralegals or legal assistants. Now days the work outsourced includes contract review, drafting and management, patent research, analysis and writing, litigation support and legal research, general research and review.
Contract Review includes reviewing, amendments and tracking in the contracts.
Drafting of various kinds of Contracts in accordance with requirements of clients.
E-Discovery consumes 70% of total litigation cost and large amount of time of Law firms and Companies. In India E-Discovery is done in cost effective and high quality methods with the help of leading software like IPRO, Attenex, Stratify, Summation, Concordance® FYI etc.
Drafting of case law, compilation of client/witness, Memorandum drafting, attendance and interview documents are also being done by LPOs to support an ongoing litigation.
Legal Research includes Primary & Secondary, Federal & State Case Law Research; Multi Jurisdiction & Statute Research is performed by support lawyers in accordance with the needs of US Legal Firms.
Document Review for Transactions and Litigation and preparing appropriate reports.
Legal Opinions & Brief preparation for Trial and Appellate cases.
Collection, Organization and Reviewing of data and Preparation of Due Diligence Reports including Mergers & Acquisition Due Diligence.
The other services include Legal Transcription, Document Conversion and Deposition Summaries.
IP Services include Patent Research and Analysis, Patent Portfolio Analysis, IP Monitoring, helping file patent applications, infringement studies, and patent / trademark PRIOR ART search.
OUTSOURCING LEGAL WORK TO INDIA began in 1995, with the 34 lawyers at present the industry has more than 15000 lawyers. The reason being, India has large Quality Pool of Talented Resources and Excellent Infrastructure in addition to Cost Advantage of almost 80% and LPO firms in India have reached a higher maturity level. The enabling Government Policies & Support with Strong Fundamentals gives a boost to Outsourcing Industry. India has healthy Business Environment and Enhanced Value Delivery Capabilities. Indian litigation and dispute resolution methodologies are well founded on the classic Constitution of the biggest Democratic Republic in the world and are understood universally.
“A recent report by Value Notes indicates that by 2010, the legal services offshoring industry in India will employ about 24,000 people – a more than ten-fold increase over current numbers. The report estimates that the overall addressable offshore opportunity in legal services will work out to $4.5 billion by 2010,”
Knowledge intensive outsourcing functions such as offshore legal offshoring aka LPO have the real potential of becoming indispensable tools in a corporate strategists´ toolkit. What is needed is a ‘leap of faith’ to move from transaction-oriented client-vendor relationships to a relation that is a true partnership. Anyone who has used an external provider for legal needs, offshore or otherwise, knows that depth and ability to fulfill complex needs comes with time. The same is true for work done by engineers and lawyers located offshore. Offshore companies that have healthy client relationships and talent retention practices that actually work would be ideally placed to grow into the role of such partners. (http://legallyours.blogspot.com/2009/04/lpo-industry-in-india.html)Top