India has made a strong niche for itself in Legal Process Outsourcing space, with its undeniable advantages in the size of its talent pool and the cost & time differential. There are heady projections from Nasscom, McKinsey etc, leading to a lot of exposure and hype in media today. The abundant skilled manpower has made India a target destination for International law firms, Legal publishing companies, Solo attorneys, Attorneys at law to back end their operations in India. India ranks high in areas such as qualifications, capabilities, quality of work, linguistic capabilities and work ethics, and thus is ahead of competitors such as China, Philippines, Ireland, Australia, Canada etc.  India, like the US, is a common-law jurisdiction rooted in the British legal tradition. Appellate and Supreme Court proceedings in India takes place exclusively in English.  Indian legal opinions are written exclusively in English.

The whole concept of outsourcing non-core/core legal work of any company or a law firm has cropped up because all these companies want to minimize their expenses by spending less on expensive back-office activities in their respective countries. As of today nearly 2/3 of the LPO work across the world is being initiated from USA alone. Therefore comparing the difference in value in the currency of USA/ Euro/ Commonwealth countries visa vis India, one is able understand the advantage India qua other countries. To add to this, India has 3 more advantages, which give it a cutting edge over other countries, namely;

A] Availability of English speaking lawyers.

B] Time Gap.

C] Cheap and abundant labor

Market research reveals that US/UK lawyers think of the off-shore legal process largely as a cost-saving measure and then desire that the quality of the vendor is tremendous. It has been an understanding that firms outsource legal processes for the following grounds:

•         To avail huge cost benefits – Most of the firms who seek to leverage labor arbitrage look to achieve total legal process savings between 50% and 70%.  This is much higher than traditional outsourcing arrangements where the cost savings often are in the range of 15% to 25%.

•         24X7 working for their clients.

This improvement comes in three forms like, improved quality central to the service itself. Enhanced commercial impact, Superior strategic impact, to concentrate on their core competency (legal consulting)

While an attorney in your legal market charges at minimum 250 dollars per hour for work, countries that are offering offshore legal services charge just a fraction.

If you are looking for the efficiency & remain profitable in your legal business which is very competitive in nature, outsourcing your back end process is must.

Now as all of us are aware with the cost benefit involved in outsourcing a particular job. We are also confronted with the fact that each & every legal matter involves a huge bundle of documentation works which are used to support the issues of general & corporate client. No body likes spending valuable time & money over matters, when cost effective alternatives are available nearby. If your supportive vendor is qualified enough & less costly for the job, then why not give him a chance & focus on your core matters rather getting involved in back end job completion. Legal Services Off shoring is proving to be a high end industry that has been growing rapidly in the recent years.

Legal Services Off shoring companies cover the following services in genera:

      There are a large number of legal and paralegal services that can be outsourced. A few important ones are:

o Electronic Document Management Services such as legal transcription, legal coding, data digitization etc

o Research Services such as statutory and case law research services, by making use of electronic databases.

o Due Diligence Services such as checking of company books, board resolutions and shareholder resolutions for the purpose of mergers and acquisitions.

o Contract Drafting and Proof Reading of Contracts such as employee contracts, non-disclosure agreements, licensing agreements, supplier agreements, lease agreements, vendor agreements, and distributor agreements

o Document Discovery in Litigation which is a tedious, time consuming process that is essential in most litigation cases.

o Intellectual Property Services that include patent application drafting, prior art searching, patent proof reading, docketing, patent landscaping and patent valuation.

Legal Research services include the following:

·    Admissibility of Evidence

·    Articles for Publication

·       Memoranda of Law

·    Cause of Action Assessment

·    Foreign Law Research

·      Legislative History Research

·    Multijurisdictional Surveys

·    Personal Injury Issues

·    Pleading Drafts

·    Regulatory Research

·    Statute of Limitations Issues

·    Professional Responsibility Research

·    Trial Briefs and Supporting Memoranda

·    Summaries of On-Point Cases

·    Preparation Research Reports

·    Drafting of Complaints

·    Drafting of Appeals

·   Drafting various motions such as motion for summary judgment, motion to dismiss, motion to vacate judgment, motion for sanctions, motion to transfer, motion to set a hearing date, motion to enforce settlement, motion for leave to amend complaint, motion to remove executor, motion in limine to exclude expert testimony, motion to intervene, reply to motion to intervene, reply to motion for reconsideration, motion to compel production of documents etc.

Over the last several years, the augmentation in electronically stored information (ESI) such as email, instant messages, documents and data on handheld devices has drastically changed the legal action practice. As a result of this data explosion, the complexities associated with performing first level document review have accordingly increased, and with them, the corresponding costs.

LPO is increasingly being preferred these days because document review work has become a time consuming and expensive process, mainly triggered by data explosion, technological evolution, and the sudden increase in electronic stored information. One cannot also deny the fact that US practices lack consistent teams to perform document review work.

Besides litigation cases, documents are also reviewed for corporate due diligence and regulatory compliance. As such, interest and demand is growing in legal process outsourcing (LPO) that allows for economies and efficiencies in first level document review.

Need For FLDR

The main purpose of first level document review is to analyze documents and settle on “responsive” or “non-responsive” nature as they relate to a specific legal case or issue. In essence, first level document review forms part of the discovery phase of litigation. It is the initial review phase that helps narrow the document set to a responsive and workable data set for later, more senior review.

With costs and inconsistencies in mind, high document reviewer turnover has not only affected the consistency of first level document review projects, but has led to an inefficient model of “train and retrain,” ultimately exploiting valuable client resources and time.

Benefits of Outsourcing Document Review Processes

     The benefits of outsourcing legal document review processes are many:

    For any legal service, a preliminary level document review accounts for about 50%-90% of their litigation costs and proves very expensive. This is where you should look to cut costs. Most LPOs charge an hourly rate of $40-$60 as compared to $350 in the US.

o    Not only does this help you cut your costs tremendously, it also helps you concentrate on core services, become more efficient, and thrive in the competition. Besides great savings in time and money getting a consistent team to handle one’s work is a great privilege.

    Outsourcing legal services to countries like India where the law professionals are familiar with the English common law used in both the UK and the USA, has made it a favorite LPO (legal process outsourcing) destination.

It is usual to be worried about the confidentiality of the documents while offshoring. There are vendors who might be able to do the work cheap for their client but let’s face it, there is no way for a client to know or control a situation where his work is floating around to sub-contractors of the vendor who couldn’t care less for confidentiality. So an extreme care must be developed to build discretion into the contract that a client involves into with the vendor marking heavy penalties in the event of a violation.

Access to skilled lawyers can level the playing field for smaller firms and sole practitioners. The cost effective/qualified vendor availability would certainly balance the work pressure & living condition.

Outsourcing is a back end job which marks itself as a simple support service rather whole solution for entire legal work. Hence, you should not follow the way of other big law firms in outsourcing arena. A large outsourcing firm might not give you enough support & customized solution as you are seeking because you might not be the largest client for them & therefore you may be out of their priority list. For a solo attorney like you, always choose a mid-sized vendor, who has certain advantages that work in his favor, may be a non-metro location but willing to provide client with quality resources and commitment to service. Make sure meeting with vendor directly/indirectly before starting regular outsourcing. This would not happen so easily, you will have to look for the right shore which might result in spend of time & money in traveling around globe, but if the relation works out and grows well, it will be worth the pain in your back.

When you outsource legal research and writing projects, you pay only for the time it takes to complete the project, but when you hire an employee, you immediately add to your fixed expenses. Your practice may be busy enough to benefit from project-based outsourcing, but not busy enough to not support another employee. Outsourcing is a wise use of your firm’s resources that can increase profitability.

An employee adds to your administrative burdens, especially if you are a sole practitioner. Your malpractice rates will rise, and you will be subject to all the financial and legal responsibilities that accompany “employer” status. Retaining an independent contractor is much less complicated, both initially and on an ongoing basis.

Additionally, attorneys who do not regularly do research and writing may not have ready access to research materials when they need them. A firm solely dedicated to this back end process has enough expertise in doing basic research work & report generation.

Finally, some lawyers simply like doing outside work such as trials, depositions and client meetings—more than “inside” work, such as legal research and writing. Outsourcing frees you to do those tasks that you find most personally and professionally rewarding.

But the right vendor evaluation for a solo attorney like you who is looking for a cost effective solution it is a bit more difficult but not impossible. There are around 150 small & big firms in India who offer legal services to US & UK clients, thereby getting the right shore & vendor depends completely on your determination & budget.

Many US law firms have internal legal departments comprising of lawyers, associates, and a paralegal staff. However, many smaller and even most of the larger firms do not have these departments for various reasons such as cost, efficiency, quality etc. For such firms/attorneys, outsourcing their legal work makes good business sense. Managing a hectic work schedule and social life for solo attorneys is a matter of concern now days with an increasing demand by vertical clients to deliver commitments on time.

 One primary reason attorneys are outsourcing their legal research and writing is time.  Unfortunately, lawyers are not always in control of their own schedules. Deadlines—whether set by client, court rule or judicial fiat are always present. Frankly speaking, it seems that everything must be done at once. Some tasks demand your personal attention; others, such as legal research and writing, do not. Outsourcing enables you to weather particularly busy periods without having to hire an employee or face time- pressures that lead to attorney stress and burnout.

For attorneys deciding whether or not outsourcing the burden of standardized work is for them, India has become the destination for knowledge driven industries and call-centers. Small law firms and solo practitioners in the US, who can not afford to have large staff, can concentrate on their practice while their work being handled in India at a fraction of cost and without having too much investment in infrastructure and staff.   

Increasing number of companies and law firms have been looking at offshoring opportunities.

The whole concept of outsourcing core and non-core work of any company or a law firm has cropped up because all these companies want to minimize their expenses by spending less on expensive back-office activities in their respective countries.

Most companies have realized substantial gains through offshoring their processes, both in terms of cost savings and increased process & operational efficiency. This has been enabled by tapping into the vast talent pool of qualified legal professionals in countries like India.

Law firms, legal publishing companies and legal research firms are outsourcing their work to Indian companies. The process of outsourcing of legal work began with legal transcription work some years ago and has now gradually risen in complexity and volume including legal research, drafting motions with memorandum of law.

Nobody would’ve ever imagined five years ago that a process (legal) which is so complex in nature would be getting its way through outsourcing, but the next loop in the chain of value is here and is going to make a mark in the knowledge market. The various types of legal support services getting offshored are as varied and diverse as the legal market itself. In today’s emerging LPO market, most of the providers are offering a wide array of legal support services - a one stop shop for legal outsourcing.

The reason behind outsourcing Legal Research

Legal research in the practice of law is time-consuming, difficult and often times expensive-both for the lawyer and certainly for the client. While efficiency is an essential characteristic of a good lawyer, legal research requires both efficiency and thoroughness. The advent of the Internet, increased automation of legal processes, developments in data security, new technology tools, economic changes and the availability of well-educated low-cost foreign labor have combined to activate and rejuvenate the LPO phenomenon.

Generally a Legal Process Outsourcing firm has its own specialized subscriptions to Lexis® or Westlaw® or Lois Law as they have to cater complex needs of legal research from various law firms. A basic subscription of these search engines is usually not sufficient for attorneys who need specialized databases to find answers to complex questions in a timely manner. However, these subscriptions are costly, and often times they are not used frequently enough to justify the expense for a law firm.

LPOs are increasing operational efficiency to provide high quality Legal Research & Writing services
For an LPO to successfully provide high quality theses services, it is critical to have a strong US presence including attorneys trained in the US, and a well developed training program for its offshore attorneys. A work-flow process that effectively brings collaborative platform for the offshore team with the experience of the US team is the final constituent for a highly competent legal research practice.

LPOs operating exclusively from India or other offshore locations simply cannot effectively deal with Legal Research & Writing projects nor can they effectively control quality. Due to the complex nature of the work, communication is a key to manage these projects. From the initial step of getting the relevant information from the client to the actual review and editing of the final products—a strong US presence is necessary.

Improving the quality of legal work

Furthermore, a robust training program for new and veteran employees of the LPO is essential. Any LPO claiming to provide high quality Legal Research & Writing services must have a strong training process and a well developed curriculum for training its offshore attorneys. Some of the best providers have full-time staff dedicated to training attorneys in US law. These full-time instructors at a minimum must be US trained and licensed attorneys with an experience in the legal field, and ideally will consist of both experienced attorneys as well as legal professionals with teaching experience. Moreover, a successful training program will have a well developed curriculum specifically designed to teach US law to non-US trained attorneys.
Finally, an LPO offering Legal Research &Writing services must have a work-flow process that effectively leverages technology and synthesizes the offshore team’s capabilities with that of the US team. The work-flow process must take into account the time difference between the two teams, as well as the time sensitive nature of these projects.

The key driver for Legal process offshoring has been the availability of the vast legal expertise, faster turn-around time and cost considerations. Though the cost consideration has not lost its luster and continues to be on the top of CEO’s mind, factors such as enhanced services, process & operational efficiency, risk mitigation have become the determining factors for consideration. A significant amount of legal work like contracts and IP are location neutral and India, like the US, is a common-law jurisdiction rooted in the British legal tradition, also Indian legal training is conducted solely in English hence fits well for offshore outsourcing. 

The Indian Legal System is much like the UK, US, Canada, and a sizeable part of Europe — the major source of outsourcing. The Indian litigation and dispute resolution methodologies are well founded on the classic Constitution of the biggest Democratic Republic in the world and are understood universally.

The oasis of skilled & educated lawyers helped India to emerge as the premiere place for outsourcing the legal process. Their U.S. counterparts are outsourcing legal work to India because of a combination of India’s rock-bottom prices and the tendency of skyrocketing prices in America.

The entire legal profession has undergone a dramatic shift　with the entry of legal professionals focusing on litigation and outsourcing their office work. The large　number of law school graduates in India and the significant cost differentiation in　manpower and infrastructure between the US (client destination) and India (offshore destination) is facilitating the Indian legal industry to capture a share of this market for the US.

According to Crisil Research estimates, the potential revenues of the LPO　industry would be $1.5-$2 billion by 2011 and the industry would need to add about 33,000 lawyers to its existing strength to achieve these revenues.

Law firms, legal departments of major corporations, state and federal government are increasingly following the LPO route to reduce cost and increase efficiency. Outsourcing allows them to remain competitive and serve more clients. It has become an indispensable asset to legal community.

In the wake of economic slowdown the Legal Process Outsourcing industry has emerged as a key factor in the growth of globalization catching the curiosity of the midsized, big law firms and corporate offices worldwide.

When you’re flooded with dead timeline work, you’d either do it yourself or forward it to another under your supervision to get it completed in time. This situation can be felt across any contract-based industry wherein the job is always executed by a third or fourth party in the value chain. Another few reasons, such as, corporate client pressure on their law partners, and the recent U.S. economic slowdown has become the catalyst in the emergence of legal work outsourcing. 

The driving forces in the game are both, the client & the law firms as well. The pressure from corporate clients emerged seeking an alternative (in terms of cost effectiveness) whereas the legal firms outsourced because they wanted to focus on their core expertise rather wasting much of the time doing back office job. The game in outsourced countries started after the huge success of the BPO industry followed by business research work in KPOs. The currency conversion rate & related domain has lured most of the BPOs to specialize in this field & create a win-win situation for both.

Thus, Legal globalization or legal process outsourcing, which witnesses the merger of various leading law firms throughout the globe, is not only for cost savings but also for attracting new business and to transform legal work to global scenario from local.