Legal process outsourcing (LPO) is the outsourcing of legal tasks, typically by a law firm or corporation, to a third-party provider located in another country. One of the main benefits of legal process outsourcing is that it can help reduce costs on legal tasks while increasing efficiency and maintaining quality standards. Some of these legal tasks can be:

• Compliance
• Document review
• Drafting contracts and pleading
• Employment
• Litigation support
• Lease management
• Legal research

Legal process outsourcing (LPO) has become a popular trend in the legal industry in recent years, with many law firms and corporations recognizing the benefits of outsourcing certain legal tasks to external providers. The market size of the global legal process outsourcing industry was estimated to be worth USD 10.77 billion in 2021 and is projected to grow at an annual rate of 30.9% from 2022 to 2030. Detailed below are some of the benefits of LPO.

Benefits of Legal Process Outsourcing

1. Cost savings

By outsourcing legal work to countries where labor costs are lower, you can reduce the cost of your legal support. For example, outsourcing legal research or document review to a provider in the Philippines can result in substantial cost savings compared to hiring equivalent staff in the US or Europe.

In addition, by outsourcing legal tasks organizations can reduce their overhead costs related to legal support such as office space, equipment, and support staff.

2. Increased efficiency

LPO providers often have specialized processes and technology in place to streamline legal work, reducing the time and resources required to complete tasks. This can lead to increased efficiency for clients. Outsourcing legal tasks can also free up in-house legal staff to focus on higher-value tasks, increasing overall capacity and productivity. 

One example of a company that benefited from outsourcing its legal services is Wipro Limited, a leading global IT, consulting, and business process services company based in India. In the early 2010s, Wipro faced a significant challenge in managing its contract management process, which was becoming increasingly complex and time-consuming. To address this challenge, Wipro outsourced a team of highly skilled contract management professionals. This team was able to manage the contract review process more effectively than Wipro’s in-house team. This allowed Wipro to focus on its core business operations and improve its overall productivity.

3. Access to the latest technology

One of the major benefits of legal process outsourcing is its access to the latest technology. Outsourcing companies use technology that automate many legal processes, such as document review and contract management. For instance, the use of eDiscovery can help in the process of collecting, processing, and producing electronically stored information. This can lead to increased efficiency, improved accuracy, and reduced costs.

Technology can also be used to secure sensitive legal data and ensure that it is protected from unauthorized access or theft. This is particularly important in outsourcing arrangements where sensitive data is being shared across multiple parties. In addition, up-to-date technology can provide valuable insights into legal processes and performance through the use of analytics and reporting tools. This can help outsourcing partners make more informed decisions and improve the overall quality of their legal services.

4. Access to expertise

LPO providers may have expertise in specific areas of law that can increase the efficiency of legal services. For example, an LPO provider with experience in contract law may be able to draft contracts more efficiently than a generalist law firm.

Some of the legal experts found in LPO are:

• Legal executive assistants
• Online records clerks
• Legal administrators
• Document coders
• Billing clerks
• Clerks
• Legal secretaries
• Document reviewers
• Document processing specialists
• Legal administrative assistants
• Contract administrators
• Compliance specialists
• Legal researchers
• Case managers
• Paralegals
• Litigation Support Specialists
• Foreign Language translators
• Patent/intellectual property specialists

Contact Sourcefit today for outsourcing one of these legal experts.

5. Scalability

Another major benefit of legal process outsourcing is scalability.

LPO provides law firms and corporations with the ability to scale their legal operations up or down as needed, without the need of hiring or firing employees. For example, during a busy period, a law firm may choose to outsource some of its routine legal work, such as document review, to an LPO provider. This allows the firm to handle an increased workload without having to hire additional staff or disrupt its existing operations. Conversely, during a slower period, the law firm may choose to scale down its use of LPO services, reducing its costs while still ensuring that its legal work is completed efficiently. This is particularly beneficial for companies that experience fluctuations in demand for legal services.

6. Increased flexibility

One of the benefits of legal process outsourcing is that it provides law firms and corporations with a high degree of flexibility in managing their legal operations. This allows companies to select the specific legal tasks they would like to outsource, or even outsource their entire legal departments, on an as-needed basis. This means that companies can choose to outsource only those tasks that are essential for meeting their specific needs and goals, while retaining control over the rest of their legal operations.

This level of flexibility is particularly important in today’s rapidly changing business environment. You may benefit from outsourcing LPO if your company suddenly expands or if you have an increase in litigation or legal disputes. By outsourcing certain legal tasks, companies can adapt to these changes quickly without having to make significant investments in new technologies, resources, or personnel. This can help your company remain competitive while serving its clients.

7. Access to new markets

 LPO can help law firms and corporations expand into new geographic markets since many LPO providers have a global network of legal professionals and support staff. This can help companies access new customers, clients, and business opportunities without incurring the costs associated with opening new offices or hiring in-house staff.

In conclusion, the benefits of legal process outsourcing can improve the quality of legal services rendered by law firms and corporations. By outsourcing routine legal tasks, companies can reduce costs, improve efficiency, and access the expertise of highly-skilled legal professionals, while keeping strategic and high-value work in-house. As the legal industry continues to evolve, LPO is likely to become an increasingly popular trend, providing companies with the flexibility and cost savings they need to stay competitive in an ever-changing market.

To learn more about outsourcing, you can read our 8 Questions About Outsourcing You Should Ask article. We invite you to follow us on social media and to visit our website to learn more about our services.

About Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth Champion,  HR Asia Awards, among others.

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