Legal Process Outsourcing: India's Low Cost Advantage

Case Code: ECON031
Case Length: 16 Pages
Period: 2001-2010
Pub Date: 2010
Teaching Note: Not Available

Price: Rs.500
Organization : -
Industry : BPO, KPO
Countries : India; Global
Themes: Competitive Advantage

"[Legal Process Outsourcing] really is the future of legal services."

- Leah Cooper, director of legal outsourcing at CPA Global, in 2010.

"LPO is a whole lot more smoke than fire right now. There's a lot of talk, but not enough going on to say this sector has hit scale."

- Jagadish Dalal, managing director of thought leadership at the International Association of Outsourcing Professionals, in 2010.

Introduction

In May 2010, Evalueserve reported that the legal process outsourcing (LPO) industry in India would triple in size by 2015 and employ around 17,000 professionals. As of December 2009, the Indian LPO industry employed 4,900 professionals as against 1,300 professionals in December 2005. LPO, a recent development in the field of law, was catching up fast in India and the Philippines. The LPO market in the Philippines was, however, still in its nascent stage as compared to the one in India. Experts opined that the larger pool of English speaking law graduates had led to the growth of the industry in India.

LPO, which started in 1995 in India, had emerged as a good solution for law firms and legal departments of multinational firms looking to cut legal costs. These companies employed qualified, skilled professionals in India, outsourcing less sensitive low-end tasks to them. The tasks outsourced to India usually included low-end back office tasks such as drafting, reviewing and reporting documents, online research, drafting and applications of patents, litigation support, corporate due diligence support, and mortgage processing and intellectual property researching. The high-end tasks continued to be carried out by the associates in the US and the UK. "You could call it 'Outsourcing 2.0' or maybe even '3.0.' Now firms are increasingly trying to leverage expertise. Legal outsourcing is growing very, very quickly,"7 said Saikat Chaudhuri, an assistant professor in the business school at the University of Pennsylvania...

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