LPO 101: Understanding Legal Process Outsourcing

Legal Process Outsourcing (LPO) is the next hot trend in the legal industry. Every law firm is looking for organizations to which they can outsource their never-ending legal work. Previously considered a high risk due to the likelihood of fraud and sometimes even crime, LPO is now the best practice followed by all large and small businesses.

Essentially, by outsourcing legal work to another overseas legal service provider, the home company can get a lot of work done and so efficiently engage new clients. These days, outsourcing to India is the greatest alternative. Despite the fact that everything is becoming increasingly expensive, legal process outsourcing to India remains relatively cost-effective.

The level of service provided by India at that price is outstanding, and it is also the primary reason why several law firms are considering outsourcing to India.

Given that the legal process outsourcing providers industry is only going to develop in the future, India appears to be assured of further economic growth and prosperity.

Why Is LPO Important?

The scale of the market says it all. Global spending on legal services outsourcing is projected to have exceeded $691 billion in recent times, with the United States and Europe accounting for roughly 62%. This suggests that legal services are in great demand, with organizations and law firms looking for a different way to manage big amounts of work while maintaining low costs and high revenues.

The global LPO market was valued at $3.8 billion in 2020 and is expected to reach $7.4 billion by 2026.

Choosing Legal Process Outsourcing (LPO) has grown more common in recent years since major legal responsibilities are handled by an external counsel while following established standards and timetables.

India has a considerable pool of English-speaking lawyers schooled in common law among the main outsourcing countries. As a result, it is not unexpected that India is predicted to contribute USD 11.01 billion of the global Legal Process Outsourcing (LPO) demand by 2025.

Benefits of Legal Process Outsourcing for Law Firms

Law organizations are taking advantage of the numerous benefits that LPO may give to boost their scalability. Among the advantages are:

Savings on expenses

Law firms and corporations can save money by outsourcing legal tasks. When law firms and in-house corporate legal departments adopt LPO, they can save up to 70% on costs. Furthermore, because the outsourced services provider would bear these expenditures, LPO can cut administrative and training costs.

Offshore LPO service providers also give more cost-effective legal services across a broad range of duties. As a result, LPO is an excellent option for law firms to be more competitive.

Expertise is available

LPO enables law firms and in-house corporate legal units to gain access to top talent and subject matter experts. Outsourcing legal services enables law firms to have access to professionals who do not work for them.

As a result, law firms can address gaps in internal competencies and expand their capabilities, allowing them to provide superior client service.

Quicker turnaround

Law firms can increase their capacity by collaborating with an LPO service provider. Furthermore, employing an outside team might shorten turnaround times for legal projects or trial completion.

Furthermore, LPO services can provide law firms with access to additional professionals and experienced workers who can execute specialised duties more quickly.                                                   

Staffing that is adaptive

Law firms might modify their skills by outsourcing legal services. In response to time-sensitive regulatory investigations, law firms can simply scale up their teams to manage huge volumes of work. Similarly, they can downsize their workforce quickly after a project or case is concluded.

As a result, law firms can scale as needed without incurring additional overhead and administrative expenditures.

Project management

When work is outsourced, the project can still be controlled. It enables you to define the project’s scope. It also lets you specify the time frame in which it is expected to be finished. Most significantly, it allows you to establish your budget based on your needs.

Improved concentration on key business functions

By delegating labour, including non-core legal work, to an offshore service provider, one can reduce delivery time while simultaneously freeing up internal resources to concentrate on expanding the law firm’s core activities.

Experiential and educational opportunities for lawyers

LPOs give an excellent opportunity for lawyers to get experience. Many LPOs work for well-known law firms in the United Kingdom and the United States. As a result, they recruit foreign teachers to train their personnel.

It ensures that staff become accustomed to the work cultures of other countries while also being exposed to some of the industry’s top software. LPOs also make certain that their staff are compensated fairly for their efforts.

Here are 5 Best Ways to for Managing LPO Relationships

Prepare and plan

When seriously considering outsourcing, it is critical that you perform an extensive study. Schedule a meeting with your management staff to discuss the goals you hope to achieve through this initiative, as well as a backup plan in case the transfer fails.

Also, don’t forget to notify the people who will be impacted by your relocation – your employees, investors, and customers (if needed).

Restructure and delegate

Once the agreement is signed, it is time to delegate. Your chosen outsourcing firm will begin recruiting and training your new employees. Patience is required during this time because it will take a while for you to formally launch the new setup because your new personnel will have to be trained.

For enhanced efficiency and assistance, it is important to actively engage throughout the process. Shift employees who may be affected by this change to another department where they will be more productive.

Maintain a conscious presence

Others may need more time to acclimatize, but as long as they keep up with the programme, it shouldn’t be a problem. Keep track of both new and existing employees’ progress. Rewarding high achievers and re-training or coaching should be provided for individuals who aren’t performing effectively on their allocated job.

Don’t be afraid to speak with your provider if you notice something you don’t like, and don’t forget to acknowledge the improvements they’ve made.                       

Form a relationship with the right outsourcing company

After considering all of the advantages and cons and finalizing the plans, it’s time to begin searching for a service provider. Choosing an outsourcing company is much simpler said than done, and it can be difficult. Don’t succumb to flashy websites, low prices, or smooth-talking salespeople that make too-good-to-be-true promises.

Check the company’s track record, client testimonials, infrastructure, price, and management. Remember that a provider who understands and meets your business needs would be most beneficial to you.

Performance assessment

Throughout the adjustment time, solicit input from your clients on a regular basis. You can assess your company’s growth based on the provider’s performance towards the end of the period of adjustment.

If you are pleased with the outcome, you can make adjustments to your business contract with your service provider. If not, you have the option of discussing improvements with the supplier or terminating the contract.

Final Say

Despite the hurdles, LPO can help firms save money, boost efficiency, and improve work quality. If you’re thinking of outsourcing some of your jobs, make sure to carefully assess the pros and cons to ensure that it’s the best decision for your company.

The advantages demonstrate that LPO can be an exceptionally beneficial approach to manage your workload, saving money, and obtaining access to specialized expertise. If you believe it could benefit your company, contact a reliable LPO provider right away.