Pros and Cons of Legal Process Outsourcing (LPO)

Are you planning to outsource LPO services to India? Before you outsource, find out about the advantages and disadvantages of outsourcing legal processes.

LPO or Legal Process Outsourcing refers to the process wherein law firms and legal corporations outsource their legal processes to an offshore service provider. Outsourcing is a great way for legal firms/departments to significantly reduce their cost and increase their efficiency at the same time.

With legal process outsourcing come many advantages and a few disadvantages. If you are keen on outsourcing a part or your entire gamut of legal processing work, read more to find out about the advantages and disadvantages of legal process outsourcing.

The Advantages of LPO

Let’s start with the pros:

  • Huge cost savings

    The biggest advantage of outsourcing legal process outsourcing to India is the significant savings in cost. With the ample availability of skilled labor, you can drastically cut down your operating cost by half. The use of best practices, economies of scale and process re-engineering are some of the other factors that contribute to the low cost of legal services. With the cost reductions that come with outsourcing, you will have more revenue to invest into the core areas of your law firm.

  • 24/7 support

    By outsourcing LPO services to India, you law firm can leverage the benefits that come with India’s time zone. Since your night, is India’s day, you can get round-the-clock services. Not only will all your pending work be completed, but you can also stay a step ahead of your competitors.

  • Better focus on core business operations

    By delegating some of your non-core legal work to an offshore service provider, you can minimize your delivery time, reduce your workload and free-up internal resources to focus on building up the core functions of your law firm.

  • Ongoing innovation and business transformation

    Outsourcing can help your law firm keep up with the latest technology, changing business processes and upcoming trends. This can give your legal corporation an added advantage in the competitive legal field.

The Disadvantages of LPO

Now for the cons:

  • Confidentiality breaches

    Law firms often tend to worry about the confidential relationship between their valuable clients and their firm. This often stops them from outsourcing. However, Indian LPO service providers compile by stringent regulation when it comes to the privacy of client information. Before outsourcing, you can check with the service provider about their security, privacy and confidentiality rules. This can help your law firm avoid issues with confidentiality.

  • Communication and cultural barriers

    Legal corporations and law firms may not outsource due to the cultural and communication barriers that they have to face. Poor communication can be problem in legal process outsourcing, leading to poor responsiveness, unmet goals, ineffective governing or a lack of understanding. To avoid this problem, you can outsource a pilot project to a service provider and check their level of communication and if they are able to understand you.

  • Hidden costs

    At times a law firm can stay away from outsourcing, because of the hidden costs involved. Hidden costs may be added to the overall cost of outsourcing due to employee turnover, quality control, vendor profit margins, vendor management or rising operating costs. You can ask your service provider to provide you with a detailed list of their costs, so that you are aware of even the hidden costs.

  • Conflicts in interests

    While outsourcing LPO, you may find that there is a difference in the interests of your firm and the service provider. This can result in reduction in sales, irritated employees/customers or slow turnaround time. Initiate regular meetings to make sure that your law firm and the service provider are on the same page. This way, you can avoid conflicts in interests.

Have you experienced any of these advantages or disadvantages while outsourcing legal work to India? Would you outsource your legal processes or prefer to do it in-house? Let us know your thoughts and views in the box below. We, at Outsource2india love to hear from you!

Find out more about Legal Process Outsourcing Services and how you can leverage the benefits that only come with outsourcing.

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