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Blog » How to Steer Clear of Increased Overhead Costs? Say Yes to Legal Process Outsourcing!

How to Steer Clear of Increased Overhead Costs? Say Yes to Legal Process Outsourcing!

Last updated: 20 Mar, 2024 By | 6 Minutes Read

Legal Process Outsourcing

Of late, the legal marketplace has witnessed a worldwide paradigm transition in the delivery model for legal support services. This latest model, referred to as legal process outsourcing, entails the transfer of the tasks of attorneys, paralegals, along with other legal experts to third-party service providers situated domestically as well as abroad. Legal outsourcing services are thriving in popularity since legal firms and corporate legal divisions make an attempt to reduce expenses, boost adaptability and increase their in-house functions.

Benefits of outsourcing legal services to offshore service providers:

1. Financial Benefits:

Essentially the most important benefit of outsourcing legal services is financial savings. Organizations are able to cut off their cost set-up by means of labor arbitrage – the remuneration differential between in-house legal staff and outside providers – to acquire enormous cost benefits. For instance, an in-house lawyer may cost the company $150 per hour whilst a legal process outsourcing company legal professional may cost $75/per hour.

Offshoring abroad may eventually generate even noticeably better cost benefits. Legal personnel in foreign countries work on 30–70 % reduced earnings as compared to the workforce in the U.S. and U.K. Infrastructure expenses in India are likewise lower.

2. Accessibility to External Expertise: 

Outsourcing legal tasks to third-party vendors makes it possible for companies to gain access to high-level expertise and niche talent which isn’t present within the company. For instance, litigation companies devoid of litigation support skills may outsource a number of aspects of litigation support, like coding and document review, to specialized legal outsourcing companies. Access to outside talent is especially effective for small-scale boutique firms to fill out gaps in internal abilities. Legal outsourcing to India additionally enables domestic businesses to take advantage of global skills. Offshore locations like India have a massive, highly-trained, as well as encouraged labor force, guaranteeing a substantial pool of competent workers.

3. Lowered Turnaround Time:

 The employment of third-party personnel can certainly improve internal throughput to cut down the turnaround time for accomplishing legal tasks. The utilization of a blend of onshore as well as offshore teams may also enable companies to complete a task in a reduced period of time. For instance, the 12-hour time variance between the U.S. West Coast and India makes it possible for 24/7 operations. Offshore legal support companies are able to work during the night time to finish a project by morning.

    4. Versatility: 

    Making use of an amalgamation of in-house and external expertise helps legal businesses and organizations to customize their capabilities based on workload and client requirements. Workflow issues are incredibly common for small-scale and mid-size businesses. These kinds of firms may find it tougher to spread variability as a result of a lesser number of attorneys, support teams, and clients.

    Outsourcing legal support services facilitates firms to rapidly scale up for a case or task, leveling the arena with larger-sized businesses. Versatile staffing additionally decreases firm overhead. By outsourcing to third-party companies, law firms are able to steer clear of the fixed expenses of wages and positive aspects linked to full-time, permanent staff.

    Have you always been trying to cut down costs? Would you prefer to have an in-house team of legal professionals or outsource your legal requirements? Send us your needs, and we will be happy to make you understand how we can help you. Contact us today at [email protected] or call +1-646-688-2821.