Legal Process Outsourcing – Overview with attention to new challenges on its growth

After much debate on success of Legal Outsourcing, it has gone a long journey and reached to approx. US $ 100 Million industry, which is expected to grow further. But as every rose has bushes too, this shining industry has its own challenges. Those challenges may be in form of various kind of liabilities or others like procuring trained skilled associates, defending critiques from the nation Legal work is outsourced, etc.
The concept of LPO is derived primarily in order to reduce legal overheads by using lower paid professionals for work instead of using in-house attorneys and thereby sharpening competitive edge and increasing profitability. Hence, A LPO Vendor has an obvious and big liability towards the Outsourcer, who outsources his work, for delivering quality finished work at lowest possible price. It is because no outsourcer would be interested in off-souring at the cost of quality of finished work. And on the other hand, if the outsourcer has no cost advantage, he will not be in position to outsource.
It is being seen that in India more and more new LPO is opening day by day or conventional law firm launches their LPO unit. In fact LPOs have revolutionized the Legal practice in India and this fact can’t be denied. But in order to continue its growth, I think we as Legal Process Service Provider should be more and more vigilant towards the requirement of our clients who outsources their work to us.
In my opinion they are very much concerned for -
· Quality of the finished work
· Secrecy and Confidentiality of their Client’s Information
· Cost Advantage
For secrecy and confidentiality of client’s information we don’t allow our employees to bring any recordable device in the office. Further, the computer on which the employees work doesn’t have hard drive and they have to work directly on server. Additionally, all the activities are monitored through CCTV. Also, employees have to sign confidentiality agreement which makes them liable on their default. I think other LPO vendors also take similar measures.
For providing quality finished work most LPO vendors including us appoint talented Law graduates and train them appropriately so that they have better understanding of US or UK law. Besides initial training, ongoing regular training continues so that their skill may be improved more and more.
In my opinion in days to come, our LPO industry will have to face big blow in the front of cost advantage. It is because, in past few years, increasing employee remuneration is being used by number of LPO venders as tactic to retain trained employees. This will result in increased cost and thereby reduced cost advantage to the outsourcers. Hence, I think instead of blindly increasing employee remuneration, LPO vendors should try other alternative options to retain trained employees.
In my opinion, the best way to retain quality employees for long; thereby gaining maximum utility of training expenses is to motivate employees through other non monetary measures of employees’ welfare schemes and providing good working environment. Such measures play a big role in motivating employees towards work thereby LPO can attain big targets with quality. Added advantage of those measures is that they are cost effective. In this regard, we may learn from working of TATA group. Although, they are not in LPO, but they way they have developed pool of motivated employees, through employees’ welfare measures is great.