March 13, 2012: According to a report published by TechNavio, the Legal Process Outsourcing industry (LPO) in India is expected to grow at a compound annual growth rate of 27.7 per cent, during 2010-2014. The most important factor that will aid in the growth of the industry is the favorable government policies. There is also increased adoption of technology in the legal process outsourcing sector.
The TechNavio report says that India has now turned into a hub for the legal process outsourcing services. India is the largest service provider in the LPO sector and the industry is characterized by good quality of the service offered, skilled workforce, and the adoption of different quality control measures by the service providers in the country. Another major advantage enjoyed by the LPO industry in India is the low cost of labor, when compared to developed economies. The legal system that is being followed in India is much similar to that in the United States and the United Kingdom. So the Indian service providers are better able to understand the requirements of the clients and thus provide better services.
The report observes that the government has realized the potential of the LPO industry in contributing to the economic development of the nation. The rate at which the industry is expanding and has been able to maintain growth has demonstrated the industry’s potential to create huge employment opportunities. As a result the government has taken steps to liberalize and deregulate policies which include reducing the licensing requirements, removing the restrictions on investments and allowing FDI in the LPO sector. The increase in the number of LPO service providers in India has created huge employment opportunities for lawyers.
The report also looks into various challenges faced by the LPO industry in India and has found that improving quality and investment are the key challenges. The report also covers the trends that will influence the market, the important vendors and the forces that drive the industry and the market.
The LPO industry in India was worth USD 356.5 million in the financial year 2010. During the same periods the global LPO market was worth USD 640 million.
With the increase in demand for legal processing services, it is expected that more and more players will enter the market and make it more competitive. With 85 per cent of the market share in the global LPO market, India will continue to be the market leader for a longer period of time.