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Glossary

What is Legal Process Outsourcing (LPO)?

Legal process outsourcing is a practice that involves delegating legal work from law firms and legal departments to external service providers. It is such a strategic approach that may help an organization's workload manage more effectively, reduce costs, and allow more concentration on core legal activities. 

 

Since they make use of such specialized firms, companies can now avail themselves of high-quality legal services without incurring the overheads of extensive in-house teams.

Furthermore, Legal Process Outsourcing incorporates a wide variety of activities, including simple and routine ones like document review and legal research to more complex services like contract management, compliance assistance, and intellectual property services. 

Outsourcing these tasks can be done by legal entities to streamline operations. They will meet tight deadlines as well as achieve a very high standard of accuracy and professionalism.

What are the Key Gains of Legal Process Outsourcing?

The legal process outsourcing process has many more advantages that are illustrated in the following:

1. Economic-friendly

As discussed above, law firms and other organizations operating in developed countries like those in the United Kingdom, United States of America, or Europe, prefer to outsource their legal work to lesser-developed or developing countries, like India, as labor is less expensive here.

Hence, the costs incurred by the firm to get some work done are lesser as compared to the professionals of their own country.

This, in turn, helps save up to 30-80% of the expenses incurred by the firm and assists in maintaining a high margin of profitability, thus leading to growth in the firm's economic figures.

2. Flexibility

The use of LPO firms can be made according to the needs as compared to the full-time in-house professionals employed or recruited by the law firms.

In addition, LPO firms enable a particular law firm to access knowledge that the latter may not have in-house.

3. Efficiency

Law firms seeking legal outsourcing are inclined towards highly trained professionals as a matter of course.

This ensures that the work is conducted by the latter in a more efficient, organized, and systematic manner.

Furthermore, the fact that firms are hiring LPO firms at low prices and getting their legal work completed also contributes to the efficiency of both firms.

4. Time zone differences

Since the two firms are likely to be located on opposite ends of an LPO contract, which are usually located in two different parts of the world, time zone differences accompany the outsourced work.

Those different time zones for the companies would allow one to work even at clock hour when it could be quite impossible for the other person to work because of the time of the day for it.

5. Productivity

Apart from the above point, legal process outsourcing leads to increased productivity since no moment is spent idle.

6. Technology

The LPOs make use of high-end technology and Artificial Intelligence in order to streamline their work, eliminating chances of errors. It adds to their efficiency and productivity.

 

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