Legal Process Outsourcing: India's Low Cost Advantage
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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 |
Abstract Case Intro 1 Excerpts
Excerpts
Background Note
The history of outsourcing legal work to India dates back to 1995, when US-based Bickel & Brewer (B&B) set up a subsidiary in Hyderabad, Andhra Pradesh. According to Bill Brewer (Brewer), co-founder and managing director, B&B, the idea to set up a subsidiary was born during a conversation he had had with a relative C S Prasada Rao (Rao)...
Legal Process Outsourcing
The process of LPO in India usually involved establishing a communication link with the law firms and attorneys in the US and the UK. The foreign law firms outsourced the legal work to an LPO in India. The communication took place through dedicated e-mails, the Internet, and phone lines...
Reasons for Outsourcing
While India had dominated the BPO and KPO industries, it remained well behind in offering legal services until law firms and their clients in the West began to feel that outsourcing of legal work would help them save on time and costs...
The Advantages
The biggest attraction in the LPO industry as far as the Western firms were concerned was the cost savings. Some experts pointed out that the law firms could save up to 50 percent or more of their costs by outsourcing their legal work...
The Challenges
Despite the several benefits of outsourcing legal work to India, the areas of concern for attorneys and the clients of the foreign law firms were data security and confidentiality of information, considering the sensitive nature of legal work...
The Road Ahead
Though the LPO industry had grown at a steady pace, a report by ValueNotes predicted that the industry faced a downward trend due to the global economic downturn. The company estimated that the revenues of the LPO industry would reach US$ 440 million by the end of 2010...
Exhibits
Exhibit I: Kinds of LPO Providers
Exhibit II: Top Ten LPO Providers in India (2009)
Exhibit III: Handling Confidentiality Issues
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