Legal Process Outsourcing

Advantages of outsourcing legal services

The impact of COVID-19 has accelerated growth of the global legal process outsourcing (LPO) market, which is expected to reach an estimated US$15.7 billion by 2027. More companies are now relying on LPO as it offers solutions to challenges that cover people, processes, and technology-related issues.

What is legal process outsourcing?

Legal professionals and on-site teams want to focus their efforts on providing quality services to clients instead of having to manage laborious tasks while trying to lower the overall costs of services. An off-site LPO can step in to handle responsibilities such as undertaking case research, writing legal documents, offering support in litigation processes, and delivering accounting services.

Why outsource legal work?

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Let’s take a look at some of the advantages of outsourcing legal work.

  • Cost-effectiveness

    This is a key reason responsible for the rise in legal process outsourcing. LPO provides a unique opportunity for law firms to access high-level expertise from offshore teams while staying within the budget.
    You can also reduce long-term expenses incurred by hiring permanent staff, such as setting up additional office space. By offshoring, firms can accrue additional savings through labour arbitrage where there is a significant difference in wages between in-house legal personnel and external vendors, resulting in tremendous cost benefits.

  • Access to latest technologies

    Increasing customer expectations and the COVID-19 pandemic demand that decision makers embrace digital infrastructure and incorporate more remote services. Most LPO companies are already well-equipped with the latest AI-based solutions and IT support for eDiscovery lifecycle, contract lifecycle management, and legal research services. Law firms can enhance existing technology with collaborative digital operations and infrastructure that outsourcing offers.

  • Connections with experts and a skilled workforce

    A good legal outsourcing partner will have a network of connections with general counsels and law firms worldwide. Small firms and solo legal professionals that wouldn't normally have access to such global expertise at a local level can benefit from such services.

  • Reduced turnaround time

    When it comes to priority legal projects, time is of the essence. Having both on-site and off-site teams working on the case round the clock will increase efficiency in completing demanding legal projects. One of the benefits of offshoring is the ability to circumvent time zones so that the projects can be completed ahead of time. For example, U.S. legal work outsourced to India allows 24 x 7 availability, thereby extending productive business hours.

  • Improved focus on core operations

    By outsourcing time-consuming legal tasks, your law firm can focus on core operations that will ultimately lead to better client experience. This can include attending trials and interacting with clients to understand cases better.

  • Enhanced customer service

    Offshoring can help enhance customer service by allowing you to build a customer support platform that operates round the clock — from attending phone calls to responding to online live chats. The combination of in-house and off-site teams can help cater to various types of client needs that your business may not be able to handle all by yourself.

What to keep in mind before outsourcing legal services?

  • Hidden costs

    While cost-effectiveness is one of the primary benefits of LPO, there can be hidden costs such as rising operating costs, employee turnover, and vendor profit margins that are usually overlooked. Law firms should make sure they get a detailed list of costs from the LPO partner.

  • Attorney–client privilege and confidentiality

    Concerns about attorney–client privilege and data breaches inhibit lawyers from trusting a service provider. Do your research and background checks to ensure that the company has a track record of safeguarding confidential information. Also, check how communications between counsel and the legal process outsourcing providers fall within the attorney–client privilege.

  • Local laws

     Local laws may have stringent privacy policies and data protection laws, and the service provider and the purchaser are bound to share legal obligations. To avoid penalties, it’s recommended that law firms analyse a country’s local and international laws before choosing an offshore service provider.

Comprehensive legal services outsourcing with Infosys BPM

Infosys BPM brings value to legal businesses through products, services, and solutions with a wide range of LPO benefits such as increased flexibility, optimised cost models, AI-integrated tech solutions, process ownership, and more.

From manufacturing and energy utilities to healthcare and fast-food restaurants, our LPO success stories are evidence of our exceptional services that standardise and automate legal tasks.

Explore legal process management consulting services and technology solutions that help you meet long-term goals.

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