Legal Process Outsourcing (LPO) is the industry which carries out legal work at reduced cost, outsourced by law firms, in-house legal departments and various other organizations. LPO is the fastest growing industry which has provided alternative career option to lawyers, offering them better salaries, working conditions and work-life balance. It attracts the legal professionals because of various factors, such as, exposure to the corporate culture, openness, transparency, inclusivity, etc. Apart from benefiting the legal professionals, it also benefits the legal industry. With the increasing number of litigation work the litigation cost has increased dramatically and it drives corporate legal budget too high and with legal outsourcing the costs involved is reduced. The best part is the quality of work is not compromised.
There are various factors which support legal process outsourcing, these are—
- Internet and its growth
- IT tools
- Data security
- Economic changes
- Rising cost of legal services
The concept of globalization has opened the gate for outsourcing industries as it helps in developing and operating business on international scale. It has also facilitated economic interdependence of different states’ economy across the globe by increasing economic integration. The rapid growth of internet and its usage has also supported the legal outsourcing industry in its extension since the work done requires internet access as all the legal documents are accessed and processed via internet. Legal outsourcing is a combination of legal work and use of information technology as different IT tools help in carrying out legal outsourcing, such as, case management tools, litigation tools, etc. Data security has always been a major concern in legal outsourcing industry as legal professionals work on highly confidential data. However, with the compliance of advanced data security standards this industry works more efficiently, as a matter of fact it is much safer, considering the various studies conducted which prove that majority of the data leaks happen in-house or through ex-employees
There were other challenges too faced by this industry, such as, quality and ethical implications, however, with the growth and maturity of the business these concerns have also been tackled and handled efficiently by adopting the culture of professional ethics. With these supportive factors and many more LPO industry has grown bigger and includes various litigation support services, paralegal, IP, corporate legal services and other services, such as, legal research, medico-legal services, legal billing, etc.