LPO in New… Decade
Though many commentators comment on the present scenario of LPO industry, LPO blogger Russell Smith projects a number of ways that legal off shoring will impact the legal profession in the next 10 years. His 12 predictions are as follows:
1. Meritocracy Beats Aristocracy – Legal service must deliver value.
2. Change is Happening in the East as Much as in the West – The legal landscape is changing in India.
3. The New Tort Reform – Legal outsourcing response to bogus claim will be a cost effective defense.
4. Capital Funding of Litigation – LPO is a good value proposition for third-party investors in litigation funding.
5. The Billable Hour Bites the Dust – Value based, flat-fee or fixed fee billing are turning the legal world upside down.
6. Unintended Effects of Regulatory Reform – The offshore legal process outsourcing calls for new regulatory compliance obligations.
7. “Legal Trauma Units” Level the Playing Field – Off shoring levels the playing field for small law firms.
8. Offshore Beats Near shore – Billing rates and operating costs are considerably lower in India.
9. The Death of the “They’re Taking our Jobs” Myth – Off shoring actually creates new jobs in the West.
10. More Proliferation Than Consolidation – Offshore legal service providers are growing in number.
11. Western Lawyers Switch to Football –LPO provides an opportunity of moving up the value chain and to act as quarterbacks or team coaches.
12. The Future May Belong to the “Just Crazy Enough” – LPO entrepreneurs are setting their sights on the highest –value, highest profit margin and in this area LPO is likely to make greatest mark.