Copyright (c) 2009 Jack Lesley Jr
LPO is the hot new trend in the legal field that allows law firms and
corporations to obtain operational support and services from outside
providers rather than internally. This process has demonstrated huge
growth in the past few years within the United States and the UK, and
offers a unique path for companies to get the services that they need,
including document review,
legal research, patent services, and drafting of pleadings and legal briefs.
Countries like India and
the Philippines have proven to be very successful in this area, offering their services to anyone who needs them. The main purpose of
legal process outsourcing is to cut costs dramatically and have the same quality of work done for less money. So far, it has been a successful endeavor.
What is the future like for LPO? As of July 2009, some of the largest
firms in the world are using LPO services to handle their legal needs,
but will it hold up? The services offered are very effective and
affordable, but what will happen in the years to come? Specifically
speaking, the trends for 2010 and beyond in the legal
process outsourcing
industry are of a key interest. Attorneys and law firms within the U.S.
and other major markets often charge $150 -$350 an hour
for services
like the ones offered by outsourcing entities, which can do the same
work at a fraction of the cost. As such, it is estimated that LPO will
continue the massive growth, even through the current recession.
The work done by outsourcing services in the legal field is mostly work
that is time-consuming and chore-like for the U.S. and UK based firms
that seek out these overseas services. Legal process outsourcing providers have the advantage of providing a broad spectrum of services and being exposed to new theories, the
best practices,
and the latest laws and defenses available because of the work that
they do.
Some of the services offered by LPO companies include:
1. Case management, which includes the collection and review of documents, along with providing answers to client questions
2. Legal research, which is time-consuming and laborious for U.S. firms to handle on their own
3.
Medical records reviews
4. Billing management
5. Patent services
6. Contract management
7. Expert witness services, including those who serve as witnesses and
consultants in various matters and who can provide reports and expert
testimony in Federal and State court trials and legal proceedings
Many other tasks that are time consuming and expensive to have done at
home are also assigned to these LPO services on a firm-by-firm basis. In
some cases, there are limitless possibilities as to what work these
companies can provide to law firms and corporations.
Legal process outsourcing is not without its flaws and critics. One of
the biggest points of concern for many is the potential confidentiality
breaches that can take place. People who are performing these services
overseas may or may not be bound to the same ethical standards and code
that U.S. and UK based
lawyers
are subject to, which can cause conflicts of interest. The American Bar
Association recently offered its own ethics opinions that laid down a
framework that would allow for ethical LPO services across the country
and around the world.
While confidentiality is a major concern, it?s going to be a matter of
choosing the lesser of two evils in many cases. This might be taking
valuable work away from the country?s own lawyers and legal advisors, and it could potentially cause a conflict of interest within the ethics and confidentiality area. However, legal process outsourcing
provides many law firms a way to get the services that they need at
rates that they can afford, which is often a critical issue in these
tumultuous economic times.
The work is cheap, which is why many firms choose this method for their
legal needs. The steadily decreasing rates of LPO services in India are a
large area of concern, because the quality and value of the services
might be in jeopardy if the rates become too low. When the world
revolves around getting what is paid for, how can anyone expect quality
services when they?re paying next to nothing? Many people claim that
they know quality when they see it, but many others feel that talents
should reach farther than legal skills and provide U.S. specific and
client/service/project specific training.
This service gained its popularity because it was affordable. When clients can get rates of $20 to $50 per hour for various
legal services,
rather than paying five times that with U.S.-based services, what is
there to lose? Over the next few years, the LPO industry is projected to
grow exponentially, allowing people to find everything they need
outside their own country at a much reduced cost factor.
The legal process outsourcing industry has driven a revenue growth of
495% in 2009 alone. In response to increasing legal demands such as
foreclosures and bankruptcies, the industry has been a popular choice
for many in recent times. Forrester Research, which is an independent
market research and
technology company,
forecasts that the LPO industry will create more than 79,000 jobs by
2015, all around the world.
A small number of U.S. Census Bureaus also
estimated that more than $184 billion in revenue generated by the legal services industry in the U.S. would generate more growth and job creation for legal process outsourcing services and providers.
Another independent market research firm, ValueNotes, estimates that LPO
revenues will grow from a projected $640 million in 2010 to more than
$4 billion by 2015, which is a big jump in revenues for this fairly new
industry. Like many other types of outsourcing that have been practiced
by U.S. companies for decades, the LPO industry simply works by taking
the ?chore work? that legal firms and services have and sending it to
providers that can do it for a much more affordable rate, and still
provide the same high quality service and confidentiality that is needed
in handling legal paperwork and proceedings.
It seems, due to the current research and projected forecasts, that the estimated trends for legal process outsourcing
are quite good. The industry has grown nearly 500% in revenues in 2009
alone, and is projected to be an industry worth well over $4 billion by
the year 2015. In a time when everything needs to be affordable, many
law firms are looking to hand these various services off to someone who
can do them properly, but for much less than professional services
offered in the U.S. or the UK.
It is a race to see which firms can perform tasks faster, smarter, and
better than others. Law firms are essentially handing off the tedious,
chore-like work to services that can perform the work properly and
affordably, while maintaining their own abilities to focus on their
clients and other more important aspects of their legal firm or
corporation. Considering all the new services being developed and the
increased popularity of this type of service acquisition, it appears
that legal process outsourcing has a very promising outlook for the next five years at least.
http://dvdlcdtv.com/estimated-trends-in-legal-process-outsourcing-lpo-for-2010-and-beyond.html
