Understanding Concentration Risk in Offshore Operations

February 10, 2012

Offshoring analyses routinely incorporate comprehensive risk evaluations of economic, political and other well-known risks, but often fail to consider how these intensify as offshore operations scale. This probability of magnifying other risks as operations become geographically clustered is called “Concentration Risk.”  The remainder of this post illustrates the concept of Concentration Risk by applying a simplified offshoring risk management architecture to the operations of a hypothetical U.S. company as it evolves through an offshoring lifecycle. Read the rest of this entry »

Beyond India – Optimizing the Locations of Offshore Operations

November 23, 2011

As the volume and maturity of offshore outsourcing continues to grow, companies are developing sophisticated location strategies to balance the cost and efficiency of leading offshore locations against their economic, political, and operational risks.  During a recent analysis of global delivery center locations, my firm, Red Bridge Strategy, compared locations based on economic factors (i.e., GDP, prices, wages, and growth rates) and differences in the availability of business, technology, language, and management skills.  We then evaluated each location’s strategic suitability within our client’s optimal portfolio of offshore locations. Read the rest of this entry »

Pangea3 Using a Hub & Spoke Approach to Global Locations?

August 19, 2011

Pangea3’s recent opening of a delivery center in Carrollton, TX, near Dallas, highlights the speed with which the legal process outsourcing (LPO) industry is incorporating the general evolution of the BPO industry.  Initially, offshoring was exclusively to low cost countries to take advantage of labor arbitrage, and thereby, lower the overall costs of business processes. Since then, offshorers, both outsourcers and companies with captive centers, have begun implementing portfolios of offshoring locations using the so-called “hub and spoke” system.  “Hubs” of offshore work are generally located in scalable countries, like India and the Philippines, where there large numbers of low cost, skilled workers.  “Spokes” tend to be smaller centers that are used to meet particular skill, geographic, or regulatory needs.  Examples of spokes include the use of medium cost locations like Poland for European language skills or the location of a data center that can meet particular E.U. regulations; and Israel to get medium cost yet highly sophisticated legal skills.  (Sales offices, even when they house a few delivery people are not considered “centers,” and therefore not included in this analysis.) Read the rest of this entry »

Captive LPOs for Companies with Significant Offshore Operations

April 26, 2011

A recurrent question in the legal process outsourcing LPO industry has been whether or not corporations should build their own offshore subsidiaries (or “captives” in industry parlance) to conduct legal process work.  The captive option is particularly attractive for legal work because of the greater control and confidentiality it can afford, but for most companies, building an offshore subsidiary in India solely to conduct legal work simply isn’t feasible.  However, corporations that already have significant offshore operations providing information technology or Business Process Outsourcing (BPO) services may be in a position to benefit from captive offshore legal operations. The key factors to consider are the volume of legal process work, whether it can be organized into a consistent workflow, and instituting the appropriate management for the offshore operation and coordination across company locations. Read the rest of this entry »

U.S. Lawyer Secondments to Indian LPOs?

March 2, 2011

In January, LPO provider Cobra Legal Solutions LLC (“Cobra”) announced a secondment program for U.S.-barred lawyers who would like to work at its Chennai, India facility for between two and six months.  Global Legal sees the secondment program as a winning idea for the individuals who participate, Cobra’s outsourcing clients, and for Cobra itself.  Cobra clients that decide to second one of their attorneys to Chennai will gain even more benefit.  Read the rest of this entry »

Matthew Sullivan to Speak at Legal Process Outsourcing Conference

December 20, 2010

The International Quality and Productivity Center (IQPC) is sponsoring a Legal Process Outsourcing Conference on February 14 – 16, 2011 in New York to help attendees examine legal outsourcing strategies and decide what fits best for their companies. On Monday, February 14th, Matthew Sullivan will lead a workshop entitled:  Gaining the Right Information and Tools to Make an Informed Legal Outsourcing Decision Read the rest of this entry »

Law Review Article Analyzes LPO

November 22, 2010

Cassandra Burke Robertson, an Associate Professor, at Case Western Reserve University School of Law, has written, A COLLABORATIVE MODEL OF OFFSHORE LEGAL OUTSOURCING.  The article was recently accepted by the Arizona State Law JournalRead the rest of this entry »