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 »
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 Journal. 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 »
Recently, I posted A Financial Model for Law Firms to Embrace Alternative Fees & LPO, wherein I outlined a complex model that would allow some law firms to incorporate offerings from LPO vendors into fixed price law firm offerings. There are, however, less complex models that can incorporate LPO services into fixed price legal services, and they are in use today. As outlined below, two pioneering LPO firms, LawScribe and SDD Global Solutions, already provide services that can easily be incorporated into fixed price offerings. LawScribe provides ongoing support to law firms offering trusts and wills, and SDD Global has provided overnight drafting services to a firm in connection with an acquisition.
During the last year Global Legal has spoken to many legal department and law firm clients who have retained Legal Process Outsourcing (“LPO”) firms. At the end of each engagement there are often lessons learned that may prove useful for other practitioners as they evaluate potential engagements. One question we have asked many clients is, “What advice would you provide to others beginning the process of evaluating LPO vendors?” The responses do not represent a comprehensive list of items to consider, but items that were unexpectedly useful or more important than anticipated.
Between today and Aug. 24th I will be traveling in India and the UK to meet with LPO industry participants. My busy schedule is expected to include Mumbai, Pune, Bangalore, Mysore, Chennai and London, but I generally leave a little extra time, so let me know if you’d like to meet in one of these cities. I always find it interesting and insightful to meet industry colleagues. You can contact me at MSullivan@RedBridgeStrategy.com.
Cobra Legal Solutions LLC is a Legal Process Outsourcing (“LPO”) vendor with offices in New York and a delivery center in Chennai, India. Cobra offers what it calls “Least Cost Pricing” for its document review projects. For each document review project, clients are quoted an hourly rate, a per document rate, and a per gigabyte (GB) rate. The price that Cobra ultimately invoices the client is determined by whichever rate produces the lowest total cost. Global Legal recently spoke to two Cobra clients – a Fortune 100 technology provider and a 10 lawyer boutique litigation firm in Chicago, IL – to evaluate the merits of Least Cost Pricing.