July 18, 2017 by davidbjornson
What is Legal Process Outsourcing?
What is Legal Process Outsourcing? There is a growing trend in the legal profession where some legal processes such as litigation support, contract drafting, contract review, etc. is being outsourced to companies that offer LPO. Legal process outsourcing(LPO) is an alternative to traditional methods of doing legal processes where in, they outsource legal processes to professionals outside of the country. Some places where law firms and legal departments outsource to is India, Korea, Philippines, and many more countries in the east. The growing trend of LPO has given rise to new and uncertain companies that offer the same LPO services to the legal departments and law firms.
There is a difficulty in choosing the type of LPO service that a client may choose from considering the questionable professionalism of outsourcing. It is not safe to assume that this type of business is safe to transact in. Nevertheless, there are legitimate LPO companies out there but it’s better to be aware of the risks and regulations that come with availing these services. The law firms and legal departments should be aware of the responsibilities and the possible ethical regulations that they will break when sharing the sensitive information of their clients.
The services that are offered in LPO, but not exclusive to, are the following:
- Bookkeeping and billing
- Contract management
- Contract review
- Data analysis and management
- Document drafting
- Document production
- Due diligence
- General litigation support services
- Intellectual property services
- Legal research
- Legal transcriptions
A legal department or law firm can save as much as 30% to 80% by outsourcing to LPO companies where they present an opportunity to cut down on the cost while still acquiring the same results as hiring an employee. LPO firms can offer a lot of legal expertise to the legal departments and law firms compared to hiring legal support who are paid for full-time. LPO firms are more flexible and can do what is needed of them whenever they are asked to. Clients can also utilize the fact that there is no more need to reserve logistics for office space, supplies, and equipment when hiring LPO companies because these are already included when they are hired.