Legal process outsourcing is the practice wherein a corporation or an individual seeks legal support services from an external entity like a law firm or legal support services provider. This is usually done to reduce costs and increase operational efficiency. These service providers are required to adhere to a set of rules and discretions drafted by the company.
Many companies, even law firms, now outsource tedious tasks such as handling legal documents, litigation services, and case management to other firms.
This has since enabled businesses to divert their energy and resources from administrative tasks to other, more productive matters, such as clients, that would contribute to their firm’s growth.Â
Why should you consider law firms outsourcing?
Managing a business is no easy task; even the slightest mistake can cost your firm heavily in terms of reputation and clients. This becomes much more likely if the in-house tasks haven’t been delegated properly or if your employees haven’t been performing well. This is where legal process outsourcing can help.
Cost-effectivenessÂ
Among other benefits, it can also be more cost-effective for your firm by enabling you to cut staffing costs and other such overheads. You can temporarily hire legal professionals at lower costs before making any full-time commitment without the benefits and salaries associated with full-time employees.
Augment your resourcesÂ
Outsourcing to external service providers can supplement your resources. For example, you may not have the resources to incorporate the latest technology for timekeeping in your firm. If you outsource this job to a company dedicated to such tasks, you can get these services at a much lower cost. Law firms outsourcing can help you work around the clock by leveraging different time zones.
Niche expertiseÂ
The same goes for accessing niche expertise that may not be present in your firm. You can outsource specific legal services, such as document reviewing, employment law, or coding, to firms specialising in this area. If you own a law firm, you can augment your services by hiring legal professionals for niche services that may or may not be available in your firm.
The growth of the global LPO market is a testament to the success of the industry trend. The market is estimated to grow significantly at a compound annual rate of 31.8% from 2019 to 2025 and is projected to reach $35.9 billion by 2025.
Tips for legal process outsourcingÂ
Choosing the right LPO is crucial to your business’ success. Here’s how you can ensure service providers understand and meet your needs and expectations.
1. Identify your needs
Before making a concrete decision and starting your research for the right legal experts, you need to analyse your company’s needs. This requires an in-depth inspection of the issues that your company has been facing, the allocation of resources and workforce, and re-evaluating your legal obligations. Some of the services provided by law firms are as follows:
- Document review
- Legal research
- Contract management
- Litigation support
- Intellectual property
- Document drafting
- Labour law
- Legal drafting
Outsourcing these services can allow you to focus on other aspects of your business.
2. Evaluate your optionsÂ
Choosing a legal service provider requires careful consideration since they will be privy to sensitive information about your business. It might be helpful to chalk down the eligibility criteria, like the experience and skills you seek. Before committing, look closely into the history and processes of any service, including their work with other clients.
3. Terms and conditionsÂ
Different countries have varied standards and regulations when it comes to client confidentiality. You and your external provider must be on the same page about your firm’s privacy and confidentiality standards. It might also be a good idea to be updated about the standards in different countries.
4. Communicate your expectationsÂ
Communicating your expectations and setting a clear agenda before initiating any contracts with the service providers is essential. For example, you can set up a review process to ensure transparency, the frequency of communication and review meetings, terms of payment, and minimum service quality.
5. Precautions for LPOÂ
There are certain risks inherent to legal process outsourcing. Entrusting an external entity with important information and legal responsibilities for your firm can go awry due to several factors.
Not only can it have negative financial consequences for your business, but it can also compromise your intellectual property rights. It is important to periodically assess your LPO provider’s loyalty and scrutinise whether or not your work is on their priority list.
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