Legal Outsourcing: A Contemporary Aspect

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In the growing trends, outsourcing is one of the major bandwagon in the market. Outsourcing is nothing but contracting out of any task, job or process that is as a matter of fact performed by employees within the company to a third party. For instance, with the leaps and bounds made recently in cloud computing, corporate can outsource IT management to skilled individuals or providers.

What Is Legal Outsourcing?

In the legal profession is the outsourcing of legal services through legal process outsourcing (LPO) companies. Whether using the low-cost services of lawyers in India, hiring legal research firms, or using contract attorneys to handle temporary legal projects, a significant amount of legal work is now being performed by someone other than the attorney who was actually hired to do it.

Why Do Companies Outsource?

There are plentiful logics that why a company may choose to outsource certain business functions. Some of the most common logics include:

  • Reducing and controlling operating costs
  • Improving company focus
  • Gaining access to world-class capabilities
  • Freeing internal resources for other purposes
  • Streamlining or increasing efficiency for time-consuming functions
  • Maximizing use of external resources
  • Sharing risks with a partner company

But these logics aren’t enough to implement a successful outsourcing program. In fact, companies must ensure that they consider all of the components and are able to meet the requirements for successful outsourcing.

The critical areas for a successful outsourcing program include:
  • Clarity concerning company goals and objectives
  • A strategic vision and plan
  • Vendor selection
  • Relationship management
  • Properly structured subcontract and vendor agreements
  • Open communication with affects stakeholders
  • Senior leadership support and involvement
  • Careful attention to personnel issues
  • Short-term financial justification
How to Avoid Failed Outsourcing with Relationship Management

The combination of uncertainty and lack of attention to critical details has created a present day scenario where, according to The Gartner Group, 25 percent of outsourcing contracts will be renegotiated or canceled within three years. Ongoing management of the relationship is important. Senior management must stay involved during the implementation of the contract. Not only should there be a clearly defined escalation procedure, but senior management should meet at appropriate intervals to discuss the outsourcing relationship. Meetings also should be held at the operational level to address the working of the outsourcing contract in practice, to identify and resolve any problems that have been encountered, and to agree on changes to ensure continued satisfaction

 Benefits of Legal Outsourcing

  • Legal outsourcing is a great way for an active attorney or law firm to handle complex or time-consuming projects on a more affordable budget.
  • Solo practitioners, small firms, and boutique law practices can take on cases that would otherwise be too large for them to handle.
  • Midsize and large law firms can make their billing rates more competitive by obtaining subcontracted legal services at a dramatically reduced rate.
  • Firms that use legal outsourcing find that it provides all the benefits of having associates and paralegals performing research and document review, but at a fraction of the cost and without having to bring on full-time employees.

 

Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.

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