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 »
A recent ComputerWorld article about European Union data privacy safe harbor abuses (hat tip to JFehrman) made me wonder about their potential effect on the LPO industry. To help explain the EU data privacy regime, I spoke with a publicity-shy LPO industry colleague who is a cross-border data management expert. (Though he prefers not to be identified, I still wish to publicly thank him here – you know who you are!)
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 »
Last week (May 18th to 20th) Red Bridge Strategy conducted the 2010 Global Legal Process Management Boot Camp in Mumbai & Delhi, India. Participants received not only a comprehensive overview of the industry and some of its key players, but also firsthand experience with the infrastructure and environment in which LPO vendors operate.
- Ethical Considerations in Legal Outsourcing
- Who are the LPO Employees (& Why is That Important)?
- Legal Project Management & Supervision
- Working with Indian Teams: Differences & Similarities
- Mechanics: The Process of Legal Outsourcing
- Security & Privacy for Legal Outsourcing
In addition, Shrihari Gokhale, President of Fiserv Global Services shared his insights into the differences and similarities when working with Indian, American, and mixed teams, and Matthew Sullivan, leader of Red Bridge Strategy’s Global Legal Process Management Practice, outlined the Red Bridge Strategy methodology for evaluating and implementing global legal processes. Neeraja Kandala, ValueNotes’ lead analyst for the LPO industry, provided a frank assessment of the industry and its future.
According to one participant, the event was “a valuable insight into the industry and its participants, and well worth the trip!”
Thanks to all presenters and participants!
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 »
May 18 – 20 in Mumbai & Delhi, India
Red Bridge Strategy, Inc., a management consulting firm focused on cross-border business functions, today announced its 2010 Global Legal Process Management Boot Camp. The Boot Camp will provide a comprehensive overview of the topics that legal executives must consider when evaluating the globalization of legal operations and legal process outsourcing (“LPO”). Seminars and discussions will be led by an all-star team of industry experts from Integreon, Pangea3, Red Bridge Strategy, UnitedLex, ValueNotes, and others. Presentations will include: Read the rest of this entry »
During the week of May 17th, Red Bridge Strategy, Inc. will be offering a Global Legal Process Management Boot Camp in Mumbai and Delhi, India. Attendees will learn about the broad topic of global legal process management while highlighting Legal Process Outsourcing (LPO) as one in a set of available tools. Presentations, facilities tours, and personalized discussions will educate and inform general counsels, law firm partners and senior attorneys seeking to get up to speed quickly about the industry, its benefits, and its challenges.
The Boot Camp will provide attendees with firsthand exposure to the operating environment in India including local talent, business practices, culture, and infrastructure while simultaneously explaining local measures that address security, ethics, confidentiality, and other topics.
Look for additional information in the coming weeks.
Red Bridge Strategy, Inc. provides a full suite of process evaluation, LPO vendor evaluation, and transition services to companies interested in legal process outsourcing. Contact Matthew Sullivan for additional information.