Post on 29-May-2018
8/8/2019 Legal Process Outsourcing- Ites
1/20
Presented By:-
Sourabh Dhillon
09BS0003033
1
8/8/2019 Legal Process Outsourcing- Ites
2/20
LPOy Legal process outsourcing refers to the off shoring of
different elements in the legal process by law-firms,
corporations, and in-house legal departments (mainlyin US and UK) to offshore centers (mainly in India).
2
8/8/2019 Legal Process Outsourcing- Ites
3/20
Process
3
8/8/2019 Legal Process Outsourcing- Ites
4/20
Challenges faced by law firms:y Escalating costs - secretaries costs between 25k-35k pa
y Lack of office space - may not be a problem given thecurrent economic climate
y Low morale and motivation issues primarily due tothe repetitive and/or mundane nature of the process
y Backlogs in letter production and documentation - due tostaff shortages
yNecessity of using temporary staffto alleviate short-termstaff shortages
y Lack of quality and consistency temporary staff can beof variable quality and at a premium cost
4
8/8/2019 Legal Process Outsourcing- Ites
5/20
Outsourcing within Law Firmsy Law firms are well aware of what outsourcing can deliver - most
provide advice to companies on their outsourcing deals.y Despite this, very few law firms have considered outsourcing for
themselves and even fewer have an outsourcing strategy.y However, the legal sector is showing signs that it is now adopting
outsourcing as a business strategy - partly driven by theeconomic turmoil..
y Clifford Chance has led the field by moving back office andsecretarial support to its own office in India, in order to carry out
much of the companys administrative work. The outsourcingprogramme is expected to yield more than 9.5m in annualsavings.
y Similarly, Pinsent Masons announced a deal to offshore its bulktyping and transcription services as part of a move to change therole of its secretaries.
5
8/8/2019 Legal Process Outsourcing- Ites
6/20
Some drivers are particularly important for
law firms
y Core cost reduction.
y Getting access to capability/resources
y Better utilisation of in-house resources by outsourcinglow-value services
6
8/8/2019 Legal Process Outsourcing- Ites
7/20
Outsourcing Scope within Law Firms..Outsourcing non-core activities
Business support functions which lend themselves to outsourcing e.g.IT and telecommunications.
Why not turn to suppliers whose core business is to provide suchfacilities on a more cost-effective basis.
Outsourcing less peripheral activities
Law firms are beginning to outsource some activities directly connected with their core business of giving legal advice.
Scanning documents, word processing, legal transcription, coding,conversion, digital dictation, reviewing transactional and litigationdocuments, drafting contracts, research memoranda and due diligencereports, patents, surveying laws of various jurisdictions etc.
7
8/8/2019 Legal Process Outsourcing- Ites
8/20
What can be outsourced
8
8/8/2019 Legal Process Outsourcing- Ites
9/20
The Indian LPO Market
9
8/8/2019 Legal Process Outsourcing- Ites
10/20
10
yA News Clipy Business 360- UTV news
8/8/2019 Legal Process Outsourcing- Ites
11/20
Going Offshore- The Indian LPO markety India has attracted much attention for its provision of off-
shoring IT services and call centres
y Less well known is the fact that US and UK law firms,
corporations and legal publishers are outsourcing legal servicesto Indian lawyers and paralegals.
y Indian lawyers have a similar common law background and arerecognized overall as having good academic legal training.
y Indian lawyers earn about half of what doctors and engineers do
their.y A newly qualified lawyer from a top 10 school in India can expect
to earn about 4,000 to 6,000 a year.
y Compare with the 30,000 per year earned by some of theirBritish counterparts.
11
8/8/2019 Legal Process Outsourcing- Ites
12/20
The Indian Advantage..English-speaking, skilled legal & IT professionalsCommon Law-trained professionals
Thorough knowledge of the US & UK legal systems
Focus on litigation & transaction support, legal research, IPRmanagement, corporate secretarial, and much more
High productivity norms & strong work ethics
Cost-competitive facilities & employees
Secure online data transaction
Experienced
Legal professionals
Presence of IT Infrastructure and Government facilitated schemes forITES sector, better telecommunication initiatives, power and transportfacilities
Advantage of time zone
Supports regional assignments 12
8/8/2019 Legal Process Outsourcing- Ites
13/20
Illustrative example..y ALondon law firm employing four secretaries - cost of about
150,000 p.a.y Including all ancillary benefits, bonuses, sickness and national
insurance, etcy Typically, but dependent upon the individual department, around
half of this work will be copy / transcription basic secretarialsupport.
y If work performed offshore, law firm can expect to save approx50,000 p.a.y Additionally, financial savings are accrued from using this variable
cost model - offshore support staff not directly employed by the UK
law firm and therefore the UK firm only pays for work completed.y The overhead savings go beyond the salary differential. By moving the
workload to another location, a firm can realise additional benefits interms of office accommodation, either by closing offices (ordownsizing), or by fitting more fee earners into office-spacepreviously occupied by secretaries
13
8/8/2019 Legal Process Outsourcing- Ites
14/20
Going Offshore- The Indian LPO market
14
8/8/2019 Legal Process Outsourcing- Ites
15/20
The Indian vendor space has over 100 service providers that can be categorized into three
groups: Captive centers of corporate
Third party - Niche service providers (Stand-alone LPOs)
Third party Multi service providers. [E.g. Infosys & Genpact are the emerging playerin LPO industry according to recent announcements.
Going Offshore- The Indian LPO market
15
8/8/2019 Legal Process Outsourcing- Ites
16/20
Strategic risks
Not achieving the originallyplanned benefits.
The loss of core activities andcompetencies.
Loss of skills and corporatememory.
Operational risks
Dependency on the supplier
Transition and switching costs
Diminished quality of service
Loss of management control
HR / Communication risks
Loss of internal coherence
Communication mismatches
Commercial risks
Security breaches
Customer lock-in
Risks
16
8/8/2019 Legal Process Outsourcing- Ites
17/20
ff-sh ri g i tr c s additi al
Risks.
y Culture
y Language
y Time-zone and distance differences.
y Management styles.
y Specific institutional features of offshore countries
yLaw, infrastructure, security, political conditions,intellectual property regulations within the offshorecountry.
17
8/8/2019 Legal Process Outsourcing- Ites
18/20
S cc ssf l
ts rci g w rks f r:-y Less complex tasks
y More repetitive tasks
yWhere monitoring is both possible and not costprohibitive
y Efficiency can be gained from automation,standardisation etc
18
8/8/2019 Legal Process Outsourcing- Ites
19/20
What is not Outsourced:-
y Complex, uniquely fact-driven cases.
y Fact-driven one-off cases.
y Complex work without local supervision.
y Unfamiliar subject matter
19
8/8/2019 Legal Process Outsourcing- Ites
20/20
Outsourcing legalwork to India is no longer a
novelty. It's a reality..
Thank You
20