50+ countries
across the world

Outsourcing leader
since 2008


quality processes

Blog » How Outsourcing Legal Process Can Help You Save Time And Money?

How Outsourcing Legal Process Can Help You Save Time And Money?

Last updated: 06 Mar, 2024 By | 6 Minutes Read

Outsourcing Legal Process

Outsourcing legal services has emerged as a leading phenomenon in the legal trade due to a paradigm shift occurring globally. This trend, known as Legal Process Outsourcing (LPO), involves exporting legal services to cost-effective markets overseas.

Under this new model, paralegals, attorneys, and other legal professionals have the opportunity to outsource their work to external vendors both domestically and abroad. This concept has gained significant popularity and continues to gain traction among law firms and corporate legal departments. These entities are consistently seeking ways to minimize operating costs, enhance flexibility, and concentrate more on bolstering their in-house competencies.

The rise of globalization, economic fluctuations, rapid internet growth, process automation, and the adoption of new technological tools are some of the pivotal factors that have fueled the surge in legal process outsourcing in recent times. Consequently, companies of varying sizes are now leveraging the services of specialized vendors across the globe for their legal requirements.

How outsourcing legal processes can save time and increase profitability:

1. Cost Optimization: 

Outsourcing the legal functions helps in reducing the cost drastically. Organizations can optimize their cost structures through labor arbitrage- the wage differential value between the in-house legal team and specialized vendors. The firms can reap incredible cost benefits and allow them to invest more in their core business. For example, due to the lower infrastructure costs in India, their legal employees operate at 30-70 percent lower wages than employees in the U.S. and U.K. markets.

2. Proficiency:

Outsourcing legal services to external vendors enables firms to reach out to specialized individuals and benefit from their niche expertise that is not available within the firm. If a litigation firm lacks the proper knowledge, it can outsource certain aspects of litigation support. For example, document evaluation and coding for adept professionals.  Reaching out to external talent is beneficial for small boutique firms to fill the loopholes in core competencies. Legal outsourcing also allows domestic firms to utilize the pool of global expertise. Destinations like India and China comprise a large, highly-trained, and enthusiastic labor force, ensuring a pool of proficient workforce.

    3. Turnaround Time: 

    Utilizing an external workforce can increase internal bandwidth to decrease turnaround time for pressing legal assignments.  An amalgamation of in-house and outsourced teams can enable organizations to complete a project in a shorter span of time.  For example, the time differential of twelve hours between the U.S. West Coast and India allows 24/7 operations.  An offshore team can finish the remainder of the work during the night and submit it in the morning.

    4. Resilience: 

    Hiring a group of in-house and external talent allows organizations and law firms to modify their proficiency in response to an assignment and client requirements.  Small and medium-sized firms are more likely to experience workflow challenges. These firms may find it more problematic to spread inconsistencies due to the lower count of attorneys, support staff, and clients. Legal outsourcing services level the playing field for them with larger firms. Resilient staffing reduces overhead costs; outsourcing to external vendors allows law firms to diminish fixed costs in terms of salaries and benefits associated with an in-house permanent attorney.

    India is currently the largest LPO destination. Therefore, outsourcing legal services to an external vendor will help track the costs compared to sustaining a team for litigation support. Beyond cost optimization, legal process outsourcing offers multiple advantages, including access to external talent, 24/7 accessibility, and the ability to scale up or cut back operations promptly.

    Are you facing a shortage of law professionals in your legal firm? Is it getting difficult for you to find talent nearby? Here, outsourcing can be the most suitable option for you. Outsource your legal process to Cogneesol and get complete support in dealing with legal matters. Call us today at +1-646-688-2821 or drop a mail at [email protected].