The rise of global legal sourcing

In his article in the current issue of Business Law Today, David Steiger writes about the state of legal outsourcing today, where it’s headed, and how it’s redefining the practice of law. The article suggests that since “first pass document review is no longer viewed as the practice of law,” it’s among the services that can be outsourced effectively.

Click here for the full article

Steiger has also written a book, “The Globalized Lawyer: Secrets to Managing Outsourcing, Joint Ventures and Other Cross-Border Transactions,” which discusses various forms of engagement, resource pools, and other business considerations.

In the current difficult economic environment, some of the usual business drivers are less pronounced. Demand for services has slowed, and many law firms are still finding it a challenge to keep their associates busy even after significant layoffs. At the same time, consumers of legal services are more price sensitive and the movement toward project-based billing or caps on total hours will push those in the legal profession to find ways to reduce their costs to maintain margins.

Outsourcing is an excellent remedy for this. Much of the work load handled by law firms can be effectively performed remotely, whether through a bar admitted lawyer, or a paralegal equivalent. The legal profession is relatively late to the practice of leveraging the benefits of labor arbitrage. Sourcing the right offshore destination requires looking beyond just cost reduction and carefully considering the skills required.

 


Decline in growth rate – and revenue – of Indian LPOs

Balancing out the optimism for growth in the legal process outsourcing industry, The Economic Times reports that a study from ValueNotes predicts lower revenue from Indian LPOs in 2009 with growth returning for 2010. The report suggests lower demand due to the global economic slowdown.

The challenge for Indian LPOs lies in maintaining its advantage as a low cost provider of lower end services while finding a way to move up the value chain. To suggest, as some do, that certain tasks cannot be performed effectively in India is an oversimplification. The factors at play are:

  • The ramp up time it takes to build and sustain a competency. Research and document review have been done for a long time in India. The understanding of the American legal system and the practice of law is a newer skill that takes time to develop.
  • Tendency for high turnover. Turnover at Indian LPO tends to be high because competitors lure employees with significant pay increases.
  • Different style of English. The written and spoken English in India follow a more British style which will require constant proofing and QA.
  • There are certain pop culture, common language habits, and references that can only be understood by being immersed in the American culture.

So, it’s not that these limitations cannot be addressed. Rather, it’s more an issue of the time and investment required to overcome this obstacle. By focusing on what it does best – document review, research, and litigation support services, Indian LPOs have a bright future with the potential to gradually deepen their service offerings.

Click here for the full article

 


Top 10 trends to look for in 2010

With 2009 nearing a close, we turn our attention to forecasts of what lies ahead in the legal industry. Outsourcing advisory firm Fronterion points to a broadening adoption of outside staff augmentation among legal professionals. Some of the top business drivers include economic pressures, changes in the regulatory environment, and the emergence of effective destinations with the requisite skills and cost reduction.

Click here for the full article

 

GREEN POINT LEGAL SERVICES NEWS AND HAPPENINGS

Proof of concept testing

As the adoption of LPO accelerates, Green Point is well positioned to assist legal professionals through its powerful business model. Our staff of US-born, bar admitted lawyers who have moved to Israel allows us to provide top notch legal expertise at about ½ of what one would expect to pay locally. Let us know how we can help you. To demonstrate our value proposition, we’re pleased to offer a free proof of concept test.

To learn more about our capabilities, please call Ken Wollins at 212 913 0500 x552 or send an email to ken.wollins@gplegalservices.com.


We want to hear from you!

In the weeks and months ahead, we plan to build this space into a trusted resource to help those in the legal profession stay on top of what’s going on in the LPO world, plus news about what we’re up to here at Green Point. Please let us know what you’d like to see in this space so that we can be sure to provide you with the most relevant content possible.

In the weeks and months ahead, we look forward to sharing white papers, scheduling webinars, and offering tips on best practices.