Myth #1: All Indian IT Wage Levels are Going Up at a Dramatic Pace

March 4, 2013

A common critique of offshore outsourcing is that wage inflation in India is quickly shrinking the value of labor arbitrage.   However, this analysis is based on three myths:

This post exposes the flaws in the first myth and explains how outsourcing professionals can leverage the truth to improve decision making and negotiations.  Future posts, will explore Myths #2 and #3.

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CMS Cameron McKenna’s Tony Wright Outlines Middle Office Outsourcing Efforts (Part 2)

June 9, 2010

Global Legal recently spoke to Tony Wright, Cameron McKenna’s Director of Operations, about its decision to outsource its middle office services to Integreon.  In the second of this two-part post, Tony talks about the risks and benefits of the deal, the decision to choose Integreon over larger BPO vendors, and the budding interest of other large law firms in this type of arrangement.

If you missed part 1, you can find it at CMS Cameron McKenna’s Tony Wright Outlines Middle Office Outsourcing Efforts (Part 1).

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CMS Cameron McKenna’s Tony Wright Outlines Middle Office Outsourcing Efforts (Part 1)

June 7, 2010

As readers of Global Legal are undoubtedly aware, last month UK-based law firm CMS Cameron McKenna LLP (“CMcK “) announced a 10 year, £583M arrangement with Integreon to outsource its middle office services.  In contrast to US-based WilmerHale’s recent initiative to move support services to a wholly-owned subsidiary in Dayton, Ohio, the CMcK-Integreon deal moves operations to a global legal services provider.  Interestingly, both firms have been silent on legal process outsourcing.  We at Global Legal were curious about how CMcK made its selection, and recently asked Tony Wright, Cameron McKenna’s Director of Operations, about their decision process.  In the first of this two-part post, Tony talks about CMcK’s decision process, including who was involved, what criteria were used, and how long it took.  Tony’s responses to my questions are below.

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CPA Global hires Rio Tinto’s Cooper – A sign for LPO?

February 15, 2010

Practitioners in the legal services outsourcing market can learn a great deal from our figurative forefathers in the broader Business Process Outsourcing (“BPO”) market.  The dean of BPO analysts and bloggers is Phil Fersht, who writes Horses for Sources.  In his recent post, Have some outsourcing vendors already thrown in the innovation towel?, Phil suggests that, “While some [BPO] vendors are talking a big game regarding how they intend to broaden their outsourcing services and consulting Read the rest of this entry »

Working with LPO Vendors: Relationship or Transaction?

October 28, 2009

If you are thinking about working with a Legal Process Outsourcing (LPO) vendor, you will generally do well to evaluate vendors with the assumption that your relationship with the selected vendor(s) will be a long-term relationship and not simply a single transaction.  Even if you are seeking a vendor for a discrete instance of work (e.g., a privilege review of documents for a single piece of litigation), you are likely to have recurring instances of similar work, and may want to outsource them again in the future.  By investing the resources up front to make sure that the right vendor is selected, you can save potential future costs by (i) minimizing the likelihood of incompetent or otherwise inappropriate vendors, (ii) having selected an alternative vendor in the event a primary vendor is conflicted out or otherwise unavailable, and (iii) having selected a vendor that has the desire and ability to grow with your needs.  In forming a relationship with a vendor, I generally recommend that clients establish a dedicated team at the vendor to service their needs.

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Changes Ahead in Sourcing U.S. Legal Services

August 19, 2009

Businesses have traditionally relied on a combination of in-house legal departments and outside law firms for all of their legal work.  During the past few years, maturing processes, technologies, and legal-services-delivery-perspectives have created an environment where corporations now have a spectrum of choices from which to source legal services.  General Counsels can globalize in-house legal departments by consolidating legal staffers in low-cost jurisdictions or outsource legal work to Legal Process Outsourcing firms (LPOs) at significantly lower costs than traditional U.S. law firms can offer. 

The delivery of legal services from offshore locations, primarily India, has grown dramatically in the last few years, and will continue in 2009.  While LPOs are compelling, they are not the only option.  Whether delivered through globalized in-house functions (international, legal, shared services functions) or LPO firms, mature legal processes now make it possible to deliver high quality work from across the globe despite the unique legal challenges of privilege, supervision and conflicts.  Some large law firms have created their own “captive” units to offer lower cost legal services to their clients.

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