Global Industry Analysts Inc, a leading market research firm published its latest research report on legal process outsourcing market titled “Legal Process Outsourcing (LPO): A Global Strategic Business Report”. According to the report, LPO is the fastest growing segment under the KPO (Knowledge Process Outsourcing) sector. The report has estimated the market to reach $2.7 billion by 2018.
Outsourcing of legal process by the law firms started as an effort to cut cost owing to the Wall Street crisis and to improve the operational efficiency way back in 2010. Legal process outsourcing (LPO) refers to the outsourcing of part of daily activities by law firms to low cost markets to reduce cost. The availability of competent vendors to provide legal services in overseas market boosted the growth of legal process outsourcing functions.
According to the report, other factors that drive the LPO market are internet penetration, uncertainty prevailing in the economy, automation of legal process, data security developments, availability of low cost skilled workforce in overseas market and the recent development in communication technologies.
Key highlights of the report include:
- Requirement for high operational and cost related effectiveness in contract and court case procedures will drive the growth of packaged legal services which provide end-to-end integrated solutions.
- Demand for multi-shore services will increase.
- India is the largest market for legal process outsourcing worldwide.
- Cost efficiency, superior quality and softening policies of the government are the main factors that drive the LPO industry in India.
- Indian LPO services are tapping opportunities from East Asian countries such as Japan and South Korea.
- Indian LPO industry gains the maximum volume of contracts from US legal industry.
- Other LPO destinations include Philippines, Israel, Sri Lanka, New Zealand, Australia, South Korea and China.
- The Philippines is becoming a favorite destination for US and UK law firms given for its large English speaking and educated talent pool.
- The new trend in the industry is the introduction of corporate style functioning in law firms.
- The global market revenue is expected to reach $2.7 billion by 2018.
- Key players in LPO industry include Accentia Technologies Ltd., Bodhi Global Services (P) Ltd., CPA Global Limited, Evalueserve, Ltd., Infosys Technologies Ltd., Integreon, Mindcrest, Inc., Pangea3, LLC, SDD Global Solutions Pvt. Ltd., UnitedLex Corporation, and Wipro IT.
- Various financial companies including equity firms and venture capital firms are investing in the sector to tap its potential.
- Many IT service providers are entering to the industry by providing back office support services.
Further the report discusses that shrinking job profile, low quality services and fear of losing control over the process prevents law firms from outsourcing major portion of legal process. However, the report highlights that the industry will grow because of the cost efficient services provided by LPO firms.
You can get more details on the report here