Legal Process Outsourcing

Driving efficiency and profitability with Legal Process Outsourcing (LPO)

Lawyers have their hands full because of the wide range of services they offer clients. Lawyers’ services include advising their clients, appearing for court representations, negotiating settlements, drafting legal documents, and more! They have to provide a multitude of services in a limited time. Time constraints may delay certain processes and increase the likelihood of errors in certain activities. In addition to constant time pressures lawyers also have the challenge to cope with changing client demands. Clients of today are more demanding than ever before, and they expect lawyers to go far and beyond their defined set of services.

Fortunately, now lawyers and law firms have the option of outsourcing legal processes. Legal Process Outsourcing (LPO) offers some respite to lawyers. Besides, it also offers them the bandwidth to grow their business. 

Legal process outsourcing is the term used to refer to the act of hiring professionals to perform certain legal activities. The freelancers who are hired can work in the office of the lawyer or work remotely on discrete functions.

Which Legal Activities can be Outsourced?

Legal processes that are identified as low-end quantitative tasks or high-end quantitative tasks are outsourced. 

Some of them are:

Drafting of Contracts: Freelancers can draft contracts that cover aspects such as licensing, financing, etc., based on the specific needs of the client. In addition to drafting contracts, activities such as tracking and managing contracts can also be outsourced.

Working with Global Clients: If a law firm has global clients, they will need the services of local lawyers who have expertise in the laws of the jurisdiction in question. Outsourcing works as a perfect solution for such situations.

Data entry: Data entry can be a tedious and time-consuming task. This task can be outsourced to freelancers instead of hiring an in-house team for performing the task.

Legal Research: Litigations require in-depth research in areas such as relevant laws, case laws, sections/clauses, and more. Data gathering and legal research can be outsourced to legal professionals. Hiring professionals who are knowledgeable about the subject helps access relevant data as required.

Documentation:Law firms require extensive documentation. They require documents to be drafted, analyzed, reviewed, and more. Outsourcing documentation tasks to freelance legal experts frees the in-house team for activities that foster growth.

Benefits of Outsourcing

  1. Access to Expert Knowledge:
  2. Lawyers can hire legal professionals who are knowledgeable in their fields.

  3. Choice of Best Legal Talent:
  4. Lawyers can access a wider talent pool. They can select the best freelancers by comparing the capabilities of different professionals. 

  5. Access to Technology:
  6. Law firms have the option to outsource thier services to firms that leverage software tools and electronic discovery to manage large volumes of data. By hiring such firms, they can experience the benefits offered by technology without actively being involved in the task of investing in technology, supporting infrastructure and keeping it updated.

  7. Improves Quality:
  8. Lawyers/law firms that manage high volumes of work could find it difficult to ensure quality in certain repetitive tasks. Outsourcing such legal functions to freelancers, with an insistence on quality output, ensures the maintenance of high-quality standards.

  9. Scalability:
  10. LPO helps lawyers/law firms scale their business up or down easily. This is because they can outsource services according to the specific needs of their business.

  11. Enhance the Scope of Services:
  12. Law firms are limited in their scope of services based on the availability of legal experts in their in-house teams. However, when they outsource, they can hire experts from multiple fields and offer services to a wider clientele. Besides, by outsourcing legal work to local lawyers they can expand their services to multiple countries and jurisdictions.

  13. Saves Time:
  14. Hiring freelance legal professionals saves time for lawyers because several tedious processes can be outsourced.

  15. Cost-effectiveness:
  16. Hired professionals perform the duties assigned without being on the rolls of the legal firm. Hence, the lawyer hiring them has to pay only a flat fee for the services. They do not have to offer them the salaries and perks of a regular employee. Besides, the lawyer/law firm does not have to incur the expenses of training or upgrading the in-house team. The law firm can hire freelancers on a need-basis based on the quantum of work to be done. This ensures that there are no expenses on benched hired talent.

It is because of these benefits that there is a surge in the number of law firms that are outsourcing legal processes. Hence it comes as no surprise that the LPO market is expected to grow to a whopping $38.13 billion by 2030 at a CAGR of 26.7%.

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