Legal Process Outsourcing (LPO) are generally used by in-house legal departments, law firms and business organizations. Cost savings and improving service levels are the key driving forces of the global LPO market. The market is expected to reach USD 8,568.5 million by 2020, growing at a CAGR of 29.6% from 2014 to 2020.
Outsourced tasks are usually performed by paralegals, attorneys, and other legal personnel licensed in the LPO providers locale with the help of industry standard databases. LPO services enable businesses to quickly formulate vital business decisions, and carry out the activities of their legal departments more efficiently. High quality expertise and intelligent solutions help improve efficiency and productivity.
What to Outsource
E-discovery: e-discovery (electronic discovery) or document review includes stages of preservation, retrieval, exchange and production of documents from electronic sources in electronic form. Identifying and producing electronic documents that also contain a large amount of data and metadata is really beneficial to law firms.
Contract services: Streamlining of contract services can be well accomplished with LPO. Contract services usually include:
* Contract lifecycle management
* Contract drafting
* Delivery of contract review
* Creation of a centralized contract repository
* Creation of template and playbook
Contract services coupled with advanced reporting and analytics allow business managers to manage key contract milestones and obligations more efficiently. With outsourcing they can stay away from the overheads of maintaining a portfolio of contract templates and legal clauses, and gain predictable on-going subscription revenue from clients.
Legal research is yet another process that can be outsourced. Experienced researchers familiar with global legal systems and proficient in delivering reports, conduct legal research on laws addressing issues presented by the client pertaining to litigation and/or non-litigation areas. Moreover, they draft legal memorandums discussing and citing laws addressing the issues presented by the client.
Compliance services: Providers offer compliance services mainly in areas such as contract remediation, obligations tracking, regulatory mapping, compliance program design, and third-party due diligence.
Provided services include:
* Pre-compliance monitoring
* Compliance implementation
* Legal research for contract compliance
Pre-compliance monitoring: The process includes conducting legal research to track the Federal, State and local legislations / regulations related to banking, trust, securities trading, real estate, and other areas of law for U.S. and worldwide jurisdictions.
Compliance implementation includes identifying, analyzing and documenting the requirements as per existing, amended and / or new law in the clients plan policies, procedures, forms, and correspondence. The process also includes reviewing forms and other legal documents provided by the client for compliance with laws in the specific jurisdiction.
Other major services to consider include patent and trademark protection, conducting multi-jurisdiction surveys, and legal surveys to identify potential risks or to determine liabilities/obligations. LPO ensures potential cost savings and consistency with competitive/fixed pricing, scalability/flexibility and speed that helps organizations and legal entities to meet challenging and changing workload requirements. On-shore or offshore outsourcing is possible according to individual preferences and requirements; outsourcing to an offshore provider brings the additional advantage of time zone difference and the possibility of round the clock service.
However, security concerns, confidentiality risks, and quality risks are the main factors to consider before deciding on LPO.