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Is Everything What it Seems in the India Offshore Legal Outsourcing Space?

Tuesday, July 27th, 2010

Author: Mark Ross
UK lawyer and Director of Business Development at LawScribe, Inc. www. examiner. @ commross clerk. com
After a series of surveys and studies of Indian legal process outsourcing industry is booming and shows no sign of slowing. Last month, the report notes the overall value “Offshoring Legal Services to India: An update was published. In one of my comments in June, I commented on the publication’s annual survey of Brown- Wilson providers subcontracting law. In recent weeks I have read many blogs, articles and press releases commented in particular the report notes the value. I do not intend to simply repeat verbatim the contents of this detailed 96 page. What I am interested in looking behind the numbers in the reality of the legal industry outsourcing to India in the field.
According to the report, there appears to be significant revenue growth from a growing number of players who support different billing at rates similar to 18 months. shows strong growth in all areas? More money, more businesses and employees in the legal area offshore outsourcing.
On closer inspection of the figures, but something not quite agree. The study notes the value of revenue of the legal outsourcing in India was produced in 62 .000.000 $ budgeted for 2005. It spent $ 124 million by the end of 2006, a healthy growth in a book. However, the number of people in the offshore legal process outsourcing industry employs and tripled the number of suppliers. All this was done in 18 months. I fully understand that this calculation is remarkably simple, but it seems that the income earned by full time somehow fallen from $ 34,000 to $ 21,000. How can this happen in a short time, if rates do not seem to have fallen billable?
There are some scenarios that I explore. The sharp increase in the number of operators is a significant amount of small time operators are jumping, jumped on the LPO process, without any real client base? I suspect so. Believe it or not, I receive an average of one every few weeks of the Indian and U.S. lawyers seeking help or advice in setting up offshore legal process outsourcing companies. I mentioned in a previous blog posting how LawScribe recently outsourced a part of your marketing for a company with a wealth of experience in general marketing in the U.S. legal industry. Several weeks after the end of the marketing year, I received an e-mail, no doubt, by mistake, the company would offer its outsourcing and legal outsourcing solutions to U.S. companies through their agreement with counsel for the Indians! The emergence of operators fly-by-night, and the risk that this represents the long-term health and reputation of the industry is the main reason why I have repeatedly called for independent verification and certification of LPOs. It’s something that I ever work with a number of colleagues in the industry, and I hope for more news on this shortly.
Another possibility is that some existing CAL exaggerate the size of their offshore teams in the hope that it will attract customers and outside. My only advice to all potential customers is to look beyond the rhetoric. Prepare a detailed RFP (Request for Proposal) to contract with any LPO and insist to visit a website. Now I understand that not every practitioner alone there is the time, inclination or funds to undertake a journey around 15,000 miles. At least if you’re not physically in order to have the offices of the Indian LPO in person for a photo gallery ASK / video shoot and insist on meeting with Team USA.
It is of course possible that the figures are correct. Admittedly, this can mean that some companies with a loss in business. No industry could support such a significant drop in revenue per full-time employees and even a profit on the whole line. This inevitably raises the specter of recession and the explosion we saw with the dot-com industry in the late 90s. The report predicts that by 2010 Value Notes will be seen to continue, the boom in the development of the Indian LPO space. I am with these projections and their prediction that the explosion in the number of suppliers will plateau in recent years. In a previous blog I discussed the concept of accreditation and http://blog itself as a necessity for the industry. examiner. com/2007/05/i-believe-that-formal-regulation-of. html. I think that by the end of the next decade we will see, industry regulations established, consolidating the large number of existing prestigious CAL and exit of weaker players. I also expect to enter the market by some of the largest business process outsourcing.
I also reread the figure boasted more than 70,000 attorneys qualifying annually in India. Legal Process Outsourcing company, prisoners farm and Western societies with their own captive arrangements in India, all say they hire the most qualified candidates the best law schools in India. But not everyone can tell the truth? http://blog In my last blog posting. examiner. com/2007/07/liberalization-of-indias-legal-services. html I discussed the potential opening of Indian legal sector to foreign firms and the impact of these changes on the offshore legal process outsourcing industry. The report estimates that there are currently 7,500 people value notes in the space occupied and offshoring legal this is set at 32,000 in the year 2010 has increased. Although some exaggeration may take place, and I am not aware of the statistics are significant, indicating the proportion of these places, the Indian lawyers fully qualified to fill, depending how you look at the numbers. Over the next 2-3 years a large number of qualified Indian lawyers working in the industry. I think the Indian government and the Bar Association is backed into a corner and has no other choice but to officially open the market to foreign companies. How could they turn a blind eye to thousands of lawyers, to foreign companies?
The fact that some in the industry is prone to exaggeration little effect on the exponential growth of the market have LPO. One thing is certain, the role that offshore legal process outsourcing will play in the U.S. and India’s legal sector will increase dramatically.