Legal Process Outsourcing – What are Pros and Cons


The law firms and corporates believe that legal process outsourcing (LPO) , besides being hassle-free, is  hands-down the most popular and effective process of obtaining external legal support services to lessen their burden with regard to their legal matters. Although factors like low cost work force, convenience and quality results may be the main causes of outsourcing legal work, it is important for in-house legal departments, law firms and attorneys to carefully weigh the pros and cons before choosing alegal process outsourcing vendor.
Like every industry the LPO industry also has its share of advantages and disadvantages. Advantages being:
(a)                A LPO companyoperates on low costs so itcan afford to charge a low fee for its support services from its clients (firms and corporates). Resultantly, the client’s legal cost diminishes and they are left with more funds to invest in the core areas of their law firms/ businesses.

(b)               A LPO company thrives on the fact that it is scalable and can ramp up its work force in a short time. It can execute large projects which need immediate deployment of work force and can be extremely useful to the clients when they are walking a tight rope.

(c)                A LPO company can reduce clients’ load in such a way that the clients can devote more time to core legal / business operations.

(d)               A LPO company working with latest technology can streamline clients’ process based functions in a seamless manner.
Well, the following disadvantages of a LPO are not strong enough to overshadow its utilities:
(a)        Communication gaps, if any, between the service provider and the clients can be ironed out by clear and continuous dialogue from time to time so that nothing is left to the imagination between the parties.
(b)        The service providers need to provide detailed costs of support services to their clients so that no hidden costs remain tacit during discussion on the costing of projects.
(c)        It is paramount duty of service providers to ensure privacy and confidentiality of clients’ data and information, are not breached at any event what so ever.
(d)        At all time, the service providers should maintain quality of the support services to enhance clients’ confidence which will ensure stability and continuity of LPO business for a long time.

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