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 »
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 »
In managing for efficiency, managers often refer to the intersecting elements of people, process, and technology. Legal Process Outsourcing (LPO) industry participants initially focused on reducing people costs by moving work to lower labor cost jurisdictions like India. For most, it quickly became apparent that coordinating onshore and offshore labor to deliver consistent, measurable results would also require the development of consistent, coordinated processes. However, their approaches to technology are among their most significant differences from each other. Some industry participants have invested in the development of industry-specific technologies that allow them to tightly integrate their people, processes, and technologies. Others have adopted technologies on a project basis to provide the best fit for each client, while still others have adopted a combination of these approaches. There are pros and cons to these approaches, and potential clients should fully consider them when selecting an LPO provider. Read the rest of this entry »
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.
In a very significant event, both for the industry and for UnitedLex, BT (British Telecom) has announced that it is transferring the duties and personnel of its captive legal services unit in India to UnitedLex. (See Full Disclosure below.)
BT, a Fortune Global 500 company that operates in 170 countries, set up a subsidiary legal services unit (a “captive” in industry parlance) in Gurgaon, India five years ago. We know from the very nature of its business that BT is familiar with offshoring generally, and, because it ran a captive legal services center for five years, we also know that it is intimately familiar with legal services offshoring. According to David Eveleigh, General Counsel for BT Global Services, the announced reason to divest was to “gain access to an established Legal Process Outsourcer who can offer industry best practices and provide global scalability.” The deal is important for the industry because it suggests that BT’s experience demonstrated the value of outsourcing legal services, even if it has reconsidered its position in the captive vs. vendor offshoring dilemma. Read the rest of this entry »
Acquisitions, alliances, and recapitalizations have been hot topics recently among LPO vendors and the broader legal services industry. Industry competitors are conducting transactions to strengthen and expand existing services, and industry investors are creating new entities and recapitalizing existing ones to enter the market with fuller offerings. Experienced managers recognize that transactions are a normal part of business operations, but the recent increase in activity suggests that the long-anticipated consolidation in the legal services industry is underway. Read the rest of this entry »