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Law Firms Outsource Work to India

On the ParalegalProfs blog, a report on law firms that outsource work to India:

As outsourcing becomes more commonplace and corporate counsel and law firms are under increasing pressure to reduce costs for clients, law firms such as Baker & McKenzie; Greenberg Traurig; Milbank, Tweed, Hadley & McCloy; and Shapiro Sher Guinot & Sandler are actually touting at conferences the benefits of outsourcing.

But despite projections that outsourcing legal work to India will be a $4 billion industry by 2015, the work is still controversial, and law firms and companies are still wrestling with such concerns as how to maintain quality control, keep client information confidential, supervise lawyers oceans away and weather new difficulties presented by recent terrorist attacks in Mumbai.

Law firms began offshoring legal work to India and the Philippines about five years ago. “Legal Process Outsourcing” firms provide document review, legal research and writing, drafting of pleadings and briefs and patent services.

Outsourcing got a further boost from recent favorable bar ethics opinions, from the San Diego Bar Association in 2007, the Florida Bar in January 2008, the North Carolina State Bar in April 2008 and the American Bar Association in August 2008. All stated that outsourcing is allowed, provided certain requirements are met, including that the client is notified and the foreign lawyers are supervised by US lawyers.



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But…

“We’re hearing from our clients that, ‘We don’t know what we’re getting’ with an LPO,” said Robert Ruyak, managing partner and chief executive officer of [Washington DC's] Howrey [LLP]. “They don’t have the same accountability and flexibility. Too many mistakes and errors can occur. We can’t train these people or supervise them. So we’d rather hire our own people and put them through a rigorous training process … and, if they don’t do well, we’d terminate them.”

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Posted by on December 11, 2008. Filed under Law Firm News,Legal News,World News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
  • Avish Sharma

    Absolutely right, there exists substantial probability that many LPO’s which are just hurdling in this lucrative industry and delivery flawed and unsatisfactory service but there are some which have gained expertise in US laws and do deliver seasoned services. And yes, their credentials can be verified by highly satisfied clientele which are infact experiencing enormous cost benefits.
    Some of our new clients did have quality and confidentiality concerns but our sophisticated technology in place and credential client references eliminated any issues and showed path to a mutually prosperous relationship.

    I believe a proper and diligent approach towards legal outsourcing can be highly cost efficient with quality.

    One thing more which I would like to share from my experience, some of US firms and/or Inhouse Counsel’s (like our clients) have increased efficiency because of the extra time we can input considering abundant resources at our side.

    Thanks & Regards,
    Avish

  • Anonymous

    Indian outsourcing industry is steadily gaining momentum now-a-days which is rightly propelled by the combined efforts of the Indian government and IT industry. At present, India has gained ample repute and made its solid presence felt in the global outsourcing market by virtue of its steady and unparalleled performance.
    Regards.