Legal outsourcing or in other words legal process outsourcing, it is the method by which law firms or corporation obtain any form of legal support from other law firms or companies from external vendors who located in the domestic country or overseas, it is a process by which other attorneys are given temporary legal project or significant amount of work keeping cost benefit analysis in mind. Basically it means outsourcing the activities wherein the personal presence or contract is required, some of the categories of services provided are of legal research and writing, drafting of pleadings and briefs and patent services. In today’s era legal outsourcing is becoming more popular because legal firms and corporate legal departments aim at completion of the work in a cost effective manner, increasing the flexibility and in-house capabilities of the employees. There advantages of outsourcing legal work to attorneys in the domestic countries or overseas, the advantages being:
Advantages of Legal Outsourcing
1) Cost savings: one of the most important factors behind outsourcing the legal work is to get work done through cheap labour (labour arbitrage), process re-engineering; therefore this saving of money will allow the firms to invest in other aspects.
2) Operational values: by efficient use of latest technologies, innovative ideas and adopting effective money expenditure method will allow the corporation or the firm to work in a more standardized manner.
3) Reduces time consummation: sending the legal works to external persons in domestic country itself or the overseas will help in completion of the work in more effective and efficient manner, whereas less consummation of time takes place, this help the corporations or the firms to reach their targets in a given time span.
4) Access to external talents : when a legal work is outsourced to an external parties, it gives the opportunity to the members of the firm to meet who are doing the outsourced work for them expertise thus working with them increases the skills of the persons in the firm.
Trends in Legal Outsourcing
The trend of legal process outsourcing is changing year by year, since the last year there was 50% growth in KPO sector in India. India has been continuously offering legal process outsourcing.
Services to law firms in countries like United Kingdom and United States, but since the year 2003 it has increased to 120. There is growth in this field because of the vendor’s maturity and the vendor’s capability to offer value added services to these firms.
Legal Outsourcing Companies in India
The LPOs of India are much in demand because India is producing legal professionals who have got good working knowledge of English. At present in India there are 100 LPOs, and Mumbai currently has become the hub for recruiting legal professionals for companies like inventurus, Pangea3 and integrecon, mindcrest etc. LPOs workers work either for hourly-wage basis or on contractual basis, through contractual basis is more preferred method as it involves less of complications.
Evolution of LPOs or Legal process outsourcing firms
The term “LPO” basically was invention made by the media sector, the term was derived from the BPO, business process outsourcing. The first firm in South India to do legal process outsourcing was Biz & Legis in the year 2008 with its International office, situated in Cochin, Ernakulam. One of the major criticisms of legal outsourcing is breach being caused to the confidentiality of a client’s personal information given to the LPO vendors. The information shred between the attorney and client is considered confidential, in such way the information is not even revealed in the courts, if revealed it was considered as breach of the information, thus in early stages the firms were reluctant from outsourcing their work; the firms were of the view that the information was also shared to countries other than united states such condition the client-attorney privileges were getting waived.
To conclude it can be said LPO clients need to have a good understanding of the process adopted by the LPO vendors in the selection procedure. Today LPO clients are mainly the law firms or in- house legal departments of large multinational corporation and the services and India is considered as the destination for legal outsourcing because India provides affordable English speaking lawyers who are educated from UK or US and due to legal system which is based on English common law.