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How LPOs Can Enhance Law Firm Operations?
Today, businesses have become highly competitive, driving the need for legal services. This is creating pressure on law offices and attorneys in terms of responsibility. They are unable to oversee and tackle their tasks proficiently. Hence, they must develop an effective strategy to handle their work and stay ready in the midst of vulnerability. And that is what we will be reading in this article today. How legal process outsourcing (LPO) can be a cost-effective way to enhance your law firm.
It won’t be a lie to say that managing a law firm has become a little challenging. For example, if you run a legal firm, you may face difficulties in acquiring clients due to the ongoing pandemic. In addition, there might be numerous financial, administrative, and strategic responsibilities to take care of to maintain the stability of your firm.
This makes the optimum management of law firms a crucial factor to ensure long-term profitability. In its absence, essential operations and responsibilities may not get enough attention. This can result in multiple managerial and financial difficulties. Let us look at some data from Clio’s Legal Trends Report that puts more light on the importance of enhancing law firm operations.
- Attorneys consume about 2.3 hours on billable tasks in an 8-hour workday.
- More than half of law firms that monitor time don’t have hourly targets for billing.
- Only half of the legal professionals set a budget and bill a case based on it.
- Administrative tasks consume almost half of the working hours that an attorney puts in.
- Only 6% of law firms understand the cost of acquiring a new client.
The Global Market Insights Inc., in its recently published report, has said the legal process outsourcing (LPO) would reach US$ 30 billion by the year 2027. This enormous demand for specialized legal services is likely to accelerate the industry’s growth due to its nature of ensuring compliance with respect to changing regulations.
Some crucial LPO market findings:
- Legal services have high rates in developed countries like the U.S. and the UK. Therefore, legal firms and organizations are looking to outsource their legal operations to other countries that meet their requirements at a cost-effective price. Hence, the legal process outsourcing (LPO) market is flourishing.
- India and the Philippines have outshined as leading external legal service providers as they have highly skilled employees and a massive English-speaking population. This has prompted the Asia-Pacific market to witness growth along with a rising number of lawyers being hired by legal process outsourcing (LPO) organizations.
How LPO can assist law firms in providing quality services?
Time is a crucial factor for attorneys in order to maintain the profitability of a law firm. However, attorneys have to wear multiple role hats simultaneously. As a result, they end up consuming quality time and money at the cost of poor customer experience & low profitability. Hence, law firms must gain balance for managing capabilities, resources, and time for improving the efficiency of operations and streamlining the process.
The main goal of legal process outsourcing is to enhance the in-house team’s capabilities and reduce expenditure. In addition, the value that your legal firm attains through external services enhances your capacity to deliver better services. As a result, your customer services are directly impacted.
Reducing pressure to ensure long-run survival
Many legal organizations do not survive in the long run because attorneys, paralegals, office assistance have to contribute more time to non-core operations. Hence, to ensure a safe playing area, firms must take the assistance of legal process outsourcing. Acquiring a competent and experienced talent pool from countries like India makes operations efficient and cuts costs.
Moreover, external legal service providers understand the needs of legal service organizations. Therefore, it’s not challenging for them to enhance their workflow through modern-day technologies.
Hiring external legal services provides corporate legal firms the advantage to leverage technology support for growing faster. Operations that are costly and require a large volume of people can be acquired at cost-effective rates. This can effectively reduce the overheads and convert them into revenue.
What you can outsource to enhance your profits?
- Administrative functions like data entry and data extraction, secretarial services, billing services, electronic documentation, and paralegal services can be handed over to external legal service providers or virtual legal assistants. This will balance the workload of law firms and expand the capacity for enhancing core focus to ensure better business and customer experience.
- Tasks like creating and maintaining a database and e-discovery compliance should be handed over to an expert LPO firm at affordable prices. As per studies, In India, LPO services offer a considerable cost advantage over U.S. operations at a very reasonable rate of 1:10.
- You can save more document costs by handing over intellectual property legal work like patent drafting and reviewing, Portfolio Management, IP, Patent proofing, and docketing. Many fortune companies are outsourcing directly to India because of cost-effective, quality, and competent legal services.
- LPO boosts attorneys and paralegals’ efficiency and confidence to handle the scrutiny. In addition, it reduces the workload of attorneys and lets them upscale their capabilities.
The Bottom Line
The main advantage of joining hands with one of the best legal process outsourcing companies is that they come as an external resource, adding value to your organization’s internal resources assuring that things are running smoothly. Firms, especially the smaller ones, may find it challenging to deal with a time-consuming major case that requires the attention of everyone for a particular time.
But who will take care of the other clients’ work when everyone is occupied with that one case? Hiring legal process outsourcing service providers gives flexibility and expense savings over hiring extra staff to keep operations running. Therefore, it is a win-win situation for clients and law firms. Clients get top-notch services, and firms generate substantial profits.
And if you are also looking for effective ways to enhance your firm’s operations and improve your capacity without increasing expenditure, legal process outsourcing can be your best choice. So get in touch with our legal experts at Cogneesol to fully understand the potential of legal process outsourcing services. At Cogneesol, we provide practical, customizable, and affordable solutions for our clients comprising lawyers, law firms, and legal departments across the globe.
We are best at handling our clients’ caseload and the responsibility of various other legal day-to-day jobs. To learn about result-oriented solutions suitable to your needs, please feel free to reach out to us for a consultation at +1 646 688 2821 or send an email at [email protected].
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