Legal Process Outsourcing- Ites

8/8/2019 Legal Process Outsourcing- Ites

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Presented By:-

Sourabh Dhillon

09BS0003033

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LPOy Legal process outsourcing refers to the off shoring of

different elements in the legal process by law-firms,

corporations, and in-house legal departments (mainlyin US and UK) to offshore centers (mainly in India).

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Process

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Challenges faced by law firms:y Escalating costs - secretaries costs between 25k-35k pa

y Lack of office space - may not be a problem given thecurrent economic climate

y Low morale and motivation issues primarily due tothe repetitive and/or mundane nature of the process

y Backlogs in letter production and documentation - due tostaff shortages

yNecessity of using temporary staffto alleviate short-termstaff shortages

y Lack of quality and consistency temporary staff can beof variable quality and at a premium cost

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Outsourcing within Law Firmsy Law firms are well aware of what outsourcing can deliver - most

provide advice to companies on their outsourcing deals.y Despite this, very few law firms have considered outsourcing for

themselves and even fewer have an outsourcing strategy.y However, the legal sector is showing signs that it is now adopting

outsourcing as a business strategy - partly driven by theeconomic turmoil..

y Clifford Chance has led the field by moving back office andsecretarial support to its own office in India, in order to carry out

much of the companys administrative work. The outsourcingprogramme is expected to yield more than 9.5m in annualsavings.

y Similarly, Pinsent Masons announced a deal to offshore its bulktyping and transcription services as part of a move to change therole of its secretaries.

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Some drivers are particularly important for

law firms

y Core cost reduction.

y Getting access to capability/resources

y Better utilisation of in-house resources by outsourcinglow-value services

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Outsourcing Scope within Law Firms..Outsourcing non-core activities

Business support functions which lend themselves to outsourcing e.g.IT and telecommunications.

Why not turn to suppliers whose core business is to provide suchfacilities on a more cost-effective basis.

Outsourcing less peripheral activities

Law firms are beginning to outsource some activities directly connected with their core business of giving legal advice.

Scanning documents, word processing, legal transcription, coding,conversion, digital dictation, reviewing transactional and litigationdocuments, drafting contracts, research memoranda and due diligencereports, patents, surveying laws of various jurisdictions etc.

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What can be outsourced

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The Indian LPO Market

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yA News Clipy Business 360- UTV news


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Going Offshore- The Indian LPO markety India has attracted much attention for its provision of off-

shoring IT services and call centres

y Less well known is the fact that US and UK law firms,

corporations and legal publishers are outsourcing legal servicesto Indian lawyers and paralegals.

y Indian lawyers have a similar common law background and arerecognized overall as having good academic legal training.

y Indian lawyers earn about half of what doctors and engineers do

their.y A newly qualified lawyer from a top 10 school in India can expect

to earn about 4,000 to 6,000 a year.

y Compare with the 30,000 per year earned by some of theirBritish counterparts.

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The Indian Advantage..English-speaking, skilled legal & IT professionalsCommon Law-trained professionals

Thorough knowledge of the US & UK legal systems

Focus on litigation & transaction support, legal research, IPRmanagement, corporate secretarial, and much more

High productivity norms & strong work ethics

Cost-competitive facilities & employees

Secure online data transaction

Experienced

Legal professionals

Presence of IT Infrastructure and Government facilitated schemes forITES sector, better telecommunication initiatives, power and transportfacilities

Advantage of time zone

Supports regional assignments 12


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Illustrative example..y ALondon law firm employing four secretaries - cost of about

150,000 p.a.y Including all ancillary benefits, bonuses, sickness and national

insurance, etcy Typically, but dependent upon the individual department, around

half of this work will be copy / transcription basic secretarialsupport.

y If work performed offshore, law firm can expect to save approx50,000 p.a.y Additionally, financial savings are accrued from using this variable

cost model - offshore support staff not directly employed by the UK

law firm and therefore the UK firm only pays for work completed.y The overhead savings go beyond the salary differential. By moving the

workload to another location, a firm can realise additional benefits interms of office accommodation, either by closing offices (ordownsizing), or by fitting more fee earners into office-spacepreviously occupied by secretaries

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Going Offshore- The Indian LPO market

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The Indian vendor space has over 100 service providers that can be categorized into three

groups: Captive centers of corporate

Third party - Niche service providers (Stand-alone LPOs)

Third party Multi service providers. [E.g. Infosys & Genpact are the emerging playerin LPO industry according to recent announcements.

Going Offshore- The Indian LPO market

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Strategic risks

Not achieving the originallyplanned benefits.

The loss of core activities andcompetencies.

Loss of skills and corporatememory.

Operational risks

Dependency on the supplier

Transition and switching costs

Diminished quality of service

Loss of management control

HR / Communication risks

Loss of internal coherence

Communication mismatches

Commercial risks

Security breaches

Customer lock-in

Risks

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ff-sh ri g i tr c s additi al

Risks.

y Culture

y Language

y Time-zone and distance differences.

y Management styles.

y Specific institutional features of offshore countries

yLaw, infrastructure, security, political conditions,intellectual property regulations within the offshorecountry.

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S cc ssf l

ts rci g w rks f r:-y Less complex tasks

y More repetitive tasks

yWhere monitoring is both possible and not costprohibitive

y Efficiency can be gained from automation,standardisation etc

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What is not Outsourced:-

y Complex, uniquely fact-driven cases.

y Fact-driven one-off cases.

y Complex work without local supervision.

y Unfamiliar subject matter

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Outsourcing legalwork to India is no longer a

novelty. It's a reality..

Thank You

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Date post:	29-May-2018
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Legal Process Outsourcing- Ites

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