Legal Press Getting Behind Outsourced Solutions?

August 29, 2009

Is there a shift going on in the legal press?  Ron Friedmann asserts that we are now in the second phase of media coverage about outsourcing.  The first wave included much reporting on the risks associated with sending work to offshore providers (not surprising given what lawyers do for a living–i.e. identify and manage risk).  In this new phase, the legal press is starting to get behind outsourcing.  In citing a recent article in the NLJ, Friedmann notes:

The article explains the proposed federal Financial Regulatory Reform, that it would increase corporate compliance cost, and that general counsels should consider using offshore lawyers to do some of the work. The article is by an executive at an LPO so the advocacy is perhaps not surprising. The surprise, if any, is that the legal media published it as a news story.

A Mountain of E-data is Driving Push to Outsource

August 29, 2009

The need for human input in categorizing and in sorting through a mountain of electronic data in IP litigation, is pushing corporate counsel and law firms to consider off shore outsourcing.

Two Veteran Lawyers Say Now Is the Time for Fixed Fees

August 23, 2009

This has huge implications for outsourcing legal work.  Could this be the tipping point?  Bill Lee, co-managing partner of WilmerHale has come out in support of fixed fee billing.  To my knowledge, he is the most senior leader of a major U.S. firm to come out so publicly for this shift in billing practices.

Will this accelerate the need for law firms to find more cost effective ways to deliver their services?  Once law firms no longer have the incentive to bill as many hours as possible, the next logical step is that they will be looking to the global marketplace to outsource the parts of the work that can be completed in a more cost effective manner.  There are many quality providers like IPEngine who are positioning themselves to provide these services directly to law firms.  If Bill Lee and Benjamin W. Heineman Jr.’s comments in Corporate Counsel magazine are any indication, we may now be reaching the tipping point for the outsourcing industry.

India Has Large Advantage Over China

August 12, 2009

While China has become a powerhouse of outsourced manufacturing, India still retains a commanding lead in the outsourcing of services and business processes like LPO.  This will remain true for a number of structural reasons.   For starters, the English language is the dominant language of services outsourcing and clearly, India has a much larger number of English speakers.  But other factors will also continue to hinder the growth of BPO and LPO in India including concerns about data security (in China, the central government still exercises a lot of control over all forms of communication and data storage.)  For more on the subject, click  here.