The Future of LPO Sector (Legal Process Outsourcing) in India
Legal process outsourcing industry has grown rapidly in recent years, with revenue for off shored legal work forecasted to grow exponentially. Legal process outsourcing (LPO) companies are hiring a good number of new professionals because of the demand of litigation services from the USA is on all-time high.
It is calculated that by outsourcing their legal and litigation back-office work to Indian vendors, US companies can save about 70 per cent in costs, which is quite considerable and demands much analysis of the future of this industry.
LPO of India again seeks its most potential from US. After USA and to some extent Europe, the next wave of LPO assignments may come from Japan and other Eastern countries such as South Korea. However, at present, the potential of LPO industry of India, like IT-BPO sector, lies mainly in US. But it can be easily planned and scheduled to increase to different countries.
But the LPO Firms has to set the industry standards to provide legal support services with advanced technological capabilities, proven process methodologies, innovation, including consistently cost-effective and higher-than-industry-standard quality offerings.
The main thing that Indian LPO companies would need to take care is that they keep their quality of services intact. As they did for the IT industry, they need to provide peerless services so that companies looking to outsource their legal requirements must feel good to give any work to Indian companies.
The LPO industry in India currently deals in there diverse categories of services that differ on the basis of work involved. In addition to the LPO services, some of the Indian LPO firms are providing middle-level services like legal advice and HR Compliance services.
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LPO - Legal Process Outsourcing Finds big future in india:
As the ailing U.S. economy prompts companies to cut costs, it also has spawned legal problems. As a result, clients are pressuring the law firms they hire to trim fees.
That means more routine work like legal research, due diligence and document review is being done in India at roughly half the cost as in the U.S., outsourcers say. Starting associates at big U.S. firms often bill more than $200 an hour. But an experienced lawyer in India bills at $75 to $100 an hour, roughly the bottom rate for some U.S. paralegals.
Legal outsourcing in India currently draws around $250 million in annual revenue, analysts estimate. That’s a tiny portion of the $40 billion in revenue for India’s technology-outsourcing firms. But legal outsourcing is growing quickly, while tech-outsourcing firms are struggling to grow.
LPO share significantly Increasing in Global Market:
Indian legal process outsourcing (LPO) sector is currently experiencing a positive effect of U.S. financial crisis as bankruptcy filing incidents as that of the major investment firm Lehman Brothers make many corporate houses and investment banks to shift their credit crisis-related work to lawyers in India as it is a more viable and cost-effective option, reported the economic Times.
Indian business process outsourcing (BPO) companies are moving up the value chain with an increase in the share of high-end judgment-based work, says a study prepared by leading global information services firm Dun and Bradstreet (D&B).
The study is based on a survey covering 440,000 employees of 177 companies, or 63 percent of the Indian BPO sector’s total employee base of around 700,000.
“In comparison to last year’s study, conventional BPO services have lost their share by almost 10 percent whereas emerging service lines such as knowledge process outsourcing, legal process outsourcing, engineering process outsourcing and e-Learning have increased their share considerably,” the study said.
