In the UK and USA outsourcing of legal work to BPO services providers has become mainstream. Anglo Saxon jurisdictions are the big drivers behind the global growth of the Legal Process Outsourcing (LPO) market which, with a yearly increase of thirty per cent, is said to amount 2.4 billion dollars globally.
With the exception of the UK, outsourcing of legal work in Western Europe is still in its infancy. We suspect that many law firms and legal departments are still hesitant because they are unfamiliar with the possibilities and benefits of outsourcing. Therefore, here a short introduction of legal process outsourcing to LPO providers.
-Much of, if not all, low value legal work is fit for outsourcing to a LPO services provider.
Why occupy your own experienced and well educated staff with simple but time consuming tasks? Why let them drafting up simple contracts and/or have them sifting through big files while you really need their expertise for other more important work?
Enabling your staff to concentrate more on high value and specialized tasks is one of the positive side-effects of outsourcing. Many legal firms that outsource work don’t even cut their staff, but use outsourcing to let in-house lawyers concentrate more on strategic work.
An interesting study about outsourcing of legal work was a 2013 study by the Outsourcing Unit of the London School of Economics. One of the interviewed clients in this research represented all others when he said about outsourcing: ,,We are doing this because there are a whole bunch of tasks that are just being done inefficiently by the team.’’
-While initially most organizations turn to outsourcing to reduce costs, firms report and praise the added value of outsourcing.
Outsourcing has several benefits. It can cause an increase in delivery speed and it can improve scalability.Outsourcing can also bring new expertise to your firm and help you avoid downtime.
Although outsourcing is about much more than cost reduction, we don’t want to leave the savings unmentioned. In the study of the London School of Economics cost reductions of 30 to 50 per cent were reported. Legal Service Support providers achieve savings by using technologies, process maturity, replacing high cost labor with lower cost labor and working from low cost countries.
Legal firms or legal departments which intend to outsource work, should disaggregate their legal work in multiple tasks and decide for each task if it will be done in-house or will be outsourced. When doing this, consider which task relates to the core business functions. Those might be better kept in-house. But frequently recurring tasks and high volume work can be perfectly outsourced.
A possible reason for firms to hesitate about outsourcing legal work, might lie in the protection of sensitive information and client confidentiality. In the early days of legal outsourcing those concerns were certainly raised but, are not an issue anymore. When properly organized, outsourcing doesn’t breech attorney-client privilege. And data is safe when it’s in the hands of a reliable and good provider of Legal Support Services which has security and risk management protocols in place.
This was just a brief introduction to outsourcing of legal work to LPO services providers. Connect with or contact us at email@example.com if you would like to learn more about this topic.