October 28, 2011: Legal Process Outsourcing (LPO) has emerged from Knowledge Process Outsourcing (KPO) which requires people with expertise in the respective domain. At the beginning the LPO started as a low end work which was mainly transcription. Now in India LPO has changed into a highly knowledge intensive work. The processes that are outsourced to India include legal research, drafting of applications for patents, advising clients, writing agreements etc.
The main reason for India being the favorite destination for outsourcing is the similarity of Indian legal system with that of US, UK and other European countries.
The advantages that Indian LPO's enjoy are:
- Time zone
- Large English speaking population
- Awareness of law doctrines
- Low cost of labour
- Attorneys qualified from US and UK
- Support provided by Indian LPO vendors round the clock
- Quality of work done by Indians
The LPO industry in India has undergone many changes from the time of its inception. The LPO industry in India offers service to diverse industries across the globe. More over, they have extended their reach by entering new geographies and also provide service in different services. Legal process outsourcing providers in India now offer end to end solutions in legal domain than one off services.
In India many of the small LPO providers were forced to shut down as they were not able to reach a scale where they can operate profitably. In some cases they even clubbed with other LPO suppliers to prevent complete shut down. Presently in India the LPO industry is dominated by large players who are capable of making large investments. Investment in the LPO industry is rising as a result of entry of large players.
Large contracts spanning over many years have been signed by many companies and this has resulted in growing maturity of the industry. In 2010, Microsoft has entered into a contract with Integreon Managed Solutions for LPO services.
It is estimated that the LPO market will be worth $699 million in 2012, $880 million in 2013, and $1,109 million in 2014. The compound annual growth rate will be 26 per cent. The LPO market today amounts to $554 million and the estimate show a huge growth potential in the coming years. It is also estimated that LPOindustry will generate 79,000 job opportunities in India by 2015. The LPO industry currently employees 250000 employees in India at present.