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Blog » Legal Process Outsourcing to Boost Efficiency and Profitability

Legal Process Outsourcing to Boost Efficiency and Profitability

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

Legal Process Outsourcing

Just like BPO Services, Legal Process Outsourcing (LPO) is an industry that offers to outsource routine legal tasks to businesses. Reliable LPO businesses have a task force comprising skilled, experienced, and talented employees with an in-depth understanding of legal jobs and practicing law. The ultimate goal of partnering with a Legal process outsourcing provider is to maximize output while managing the cost of functions. Legal Process Outsourcing comes as a great help for legal businesses who struggle with managing the cost of variables associated with the legal industry.

Choosing legal process outsourcing over in-house teams

The question always keeps the prospects thinking, Why should you choose an external team over an in-house legal department? Well, with LPO, you save both time and money, which can rather be directed in another important aspect of the business than involved in complicated and sensitive legal issues.

The Atman Weil Survey in 2019 concluded that over 48% of businesses choose Legal Process outsourcing over in-house teams. The survey further reports that only 57% of the survey population choose part-time lawyers, while the other 24% stick to outsourcing. The major reason is that LPO is an economical way of completing jobs.

Currently, several large-sized legal firms outsource their work to small-sized legal firms from different geographies. No doubt, this arrangement has certain pitfalls, including language barriers, time zone differences, compromised quality of work, and work ethics. However, the booming LPOs are functioning in a way that overpowers these challenges by delivering quality results.

What are the different variables associated with legal process outsourcing?

Legal process outsourcing in India is gradually taking shape as a major contender in the industry. India’s legal system is similar to those of developed countries like the US, UK, Canada, and Europe. The Indian Constitution lays out the ways to deal with litigation and resolve disputes and conflicts.

Moreover, the Indian constitution is more evolved and the most ‘informed legislation in the world when it comes to uniformity in legislation and its interpretation. The core variables that touch Legal process outsourcing in India include:

  • Time zone benefits
  • Thorough understanding of common law doctrines
  • Indian attorneys with UK or US qualifications
  • Easy availability of English-speaking lawyers
  • Around-the-clock functionality
  • Quality-driven work with a quick turnaround time

This is why more and more LPOs are building in India, as the country promises talent, knowledge, and quality work regarding legal process outsourcing.

What are the common services offered by Legal Process Outsourcing units in India?

In general, LPO services are broad and include:

  • Legal billing
  • Documentation/ Drafting
  • Legal research
  • Intellectual property research
  • Administrative and secretarial work
  • Paralegal work and more

Profit maximization with LPOs: How to get the best returns?

As you understand the legal process of outsourcing, you must also understand how LPOs help businesses make profits. There are many benefits of working with LPOs and enjoying guaranteed profitability and work efficiency.

1. Cost-effectiveness

Cost-effectiveness is the leading reason why businesses choose LPOs. As law firms outsource their work from teams and smaller law firms located offshore. They get quality work done but at a lower price.

Moreover, LPOs save you from hiring permanent employees, which consumes a significant amount of your working capital and also takes a lot of office space, among other administrative charges. This means that when you trust the off-shore services of LPOs, you are saving at present while adding on future savings.

Take this as a comparison between your in-house production team and what you get from external vendors. The price variations are significant; hence, legal outsourcing services appear to be a better option.

2. Enhanced scalability and flexibility

A law firm, although specialized, had to deal with a wide range of cases and utilize its resources accordingly every time. But this becomes very tough when you have a limited workforce and a high workload. How will you manage the work without piling up cases? This is where Legal process outsourcing comes to your rescue. The LPO service providers manage a diverse team of multi-talented people who are readily available to handle your diverse workload. The outsourcers can easily adapt to the requirements and offer tailor-made solutions.

You can also hire temp staff for the short term without compromising the quality of work or your reputation. Moreover, LPOs not only lighten up your workload but also help you broaden your bandwidth as they are capable of handling a wide range of tasks for you, including data collection, preparing dockets, forms, and much more.

3. Boost in competitiveness

A legal firm manages all types of work. The employees at a legal firm are also on the constant lookout for ways to increase the market share while handling their core job. As the industry competition does not seem to cease, legal firms should be more focused on offering high-quality work and retaining their valuable clients.

The rise in customer expectations also affects the way legal firms should manage their work offerings and stay at par with what the customer wants. Instead of overturning your employees to bear the cost of expanding the in-house team, it is always better to outsource the work to a firm that offers the same quality of work but at a lesser price and with no hassles. You can expect outsourcers to work on your project with the same dedication that any of your in-house employees would have done and enjoy benefits in terms of client retention and cost savings.

Moreover, this helps you maintain your competitive edge as you can present yourself as a one-point solution for legal works with expertise in different verticals.

4. Efficiency intake system

It is observed that the majority of small and mid-sized firms are unable to put a reliable intake system in place. This has the worst effect on your working arrangements and results in the loss of high-end and valuable clients. As every lead brings you a stream of money, and losing one would you big time, having a reliable intake system in place is of utmost importance.

LPOs help manage the intake process and, in return, bring you a wide range of benefits, including but not limited to:

  • Improved ROI (return on investment)
  • High conversion rates
  • Good retention output, and more.

5. Reduce turnaround time

Time is a crucial asset in the legal industry, and every business is after to find ways to make the best out of the time available to them. With an in-house and LPO team working on your projects round the clock, you certainly will have a quick turnaround time, the much sought after aspect in legal businesses. Because LPOs operate in circumventing time zones, legal businesses can get the work done even faster than before.

When a US-based legal business outsources legal services in India, the difference in time zone proves to be a great benefit to timely submissions and deliveries.

6. Better work-life balance

No doubt, legal businesses have a heavy workload, which affects their personal life as well. They operate under continuous pressure to finish the work at hand to be able to grab newer ones. With the LPO option available, businesses can easily shed the excess load, making time for themselves and evolving personally and professionally.

The shift towards outsourcing legal services can be experienced across the globe. LPOs appear to be a very effective way to boost efficiency and expand the business’s bottom line. With high-quality LPOs available, legal firms and businesses can rest assured of the quality of work and their business prowess. As fascinating as LPO would appear to you, make sure that you weigh in all the aspects of the LPO services. Factor in the benefits these arrangements will bring you and whether or not they will last in the long run. Some considerable aspects of the arrangement include the local law system, hidden costs, communication channels, and availability.

Make an informed decision and take full advantage of legal process outsourcing for business efficiency and profitability. At Cogneesol, we have mastered the art of providing quality legal back-office support services to law firms and various corporate legal departments. We have proven cases of complete gratification by providing round-the-clock backing and ensuring information security.

We offer an extensive range of legal outsourcing services to add value to your organization. Learn more about our functionality and case studies today. Call us at +1 646-688-2821 or send an email to [email protected].