LPO on move in 2011
2011 has brought many changes in LPO industry. Though Legal process outsourcing is not a new concept but during the period of recession the legal process outsourcing effect has gained impetus by providing low cost services for many legal tasks. It all started in or around the year 2001-2002, when a few courageous US attorneys and small law firms started to offload their legal clerical work such as legal billing, etc to Indian legal firms and solo Indian attorneys at a very low lost
A story in The Economist also acknowledges the growth of legal outsourcing, noting that LPO is expanding at perhaps 20-30% a year, “for the simple reason that legal costs are out of control.” Given that large law firms’ hourly rates rose more than 65% between 1998 and 2009, it’s no wonder that firms are embracing outsourcing as a means to lower costs and increase efficiency.
Over the years India has been a reliable option for offshore works and because of the past proven success in off shoring, India is once again preferred for legal outsourcing by foreign countries like USA, Canada and UK.
There cannot be denial of the fact that the Indian LPO industry which was worth $61 million in December 2005, grew to $370 million in 2009 and by the end of 2010 it reached anything between $640 million and $1.5 billion. Some enthusiasts say that by 2015 the size of the industry could be as big as $15 billion.
The primary motive of outsourcing for corporations and law firms remains cost efficiency. Undoubtedly, these arduous times in the US economy are providing a tremendous opportunity to Indian LPOs to make merry and achieve substantial growth.