Time has proven that legal services have experienced a change in its delivery of legal services. And a new model has been a product of this global paradigm shift. Legal process outsourcing, LPO for short, is transferring the work of attorneys, paralegals and other legal professionals to third party vendors, whether locally or internationally. Over the years, LPO has grown popularity due to the benefits it can give to law firms and corporate legal departments: reduces costs, ability to expand in-house manpower, and increases flexibility. Whether the work is outsourced locally or domestically or simply called offshoring, there are benefits and advantages that can be reaped from this.
1. Cost Reduction
This is one of the significant advantages LPO can offer to law firms. Why? By offshoring legal services, law firms can experience labor arbitrage, which is the wage differential between third party vendors and in-house personnel, making the business experience lower costs and bigger cost savings. Take this, for example, an in-house lawyer will cost $200 per hour while a third party vendor will cost $65 per hour. See the difference of the costs?
2. Discover External Talent
Sometimes a gem is hidden in places never explored. The same goes for this, outsourcing legal services can help the law firm find a skillful and efficient legal talent and expertise that is currently nonexistent in the company. For example, litigation firms that need extra litigation support, which can be coding and document review, can outsource from third party vendors. This will help fill in the gaps of the needed manpower to provide the best service possible to the niche market.
3. Faster Turnarounds
Opting to use external help can expand and grow the internal manpower of the company and reduces turnaround time for critical legal projects. A combination of an effective and efficient onshore and offshore team will be able to accommodate more projects in a certain time frame. An example is if the onshore team is in the United States, while the offshore team is in the Philippines. The United States team will work on its regular hours, while the Philippines team will work during the night. Therefore, there is 24/7 work done without letting projects wait to be done the next shift.
4. Promotes Better Flexibility
A combination of employed onshore and offshore team can help in tailoring the firm's abilities in responding to client's demands and workload. This means that by outsourcing legal work, the company can start to grow and take up large-scale projects, eventually helping the company go up the level same as bigger firms. Moreover, flexible staffing enables the firm to experience flexible salary costs.
Publish Date: August 10, 2017 5:00 AM
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