While there are several aspects to outsourcing legal services, e-discovery has contributed significantly to the growth of the industry. Due to the growing demand, outsourcing companies have chosen two main approaches to deliver the highest quality in eDiscovery: (i) providing end-to-end services through collaboration with partners; (ii) create a native eDiscovery technology solution. Suppliers have constantly reinvented their offerings to provide niche specialization and an intensive quality control mechanism to provide impeccable and cost-effective services. For the work to run smoothly, communication is key. This can be disrupted by language issues and cultural differences, leading to misunderstandings and delays. From local customs to a different work ethic, outsourcing comes with its own challenges that you may need to overcome or at least recognize before hiring a legal outsourcing company. EDiscovery to facilitate document review: The time-consuming process of scanning, coding and reviewing documents is now outsourced to take advantage of a large pool of cost-effective lawyers and services. Before we go any further, we need to be clear about what we mean by outsourcing legal processes. As with business process outsourcing, companies are more likely to try to outsource certain legal tasks to service providers other than external consultants in order to optimize costs and better serve their internal customers. This makes sense for several reasons, not least because hourly rates outside of law firms continue to rise. Today, even some employees charge more than $1,000 for an hour of their time. In this guide, we explore the basics of outsourcing legal processes, why more and more law firms are using it, and industry trends for 2020.
We`ve also compiled a handy list of best practices to get the most out of outsourcing legal processes. With the information you will learn here, you will be able to build a more profitable practice sooner than you think. The most profitable law firms know that time is money. If you`re looking for ways to build a more profitable law firm, look no further than outsourcing the legal process. To make the most of your time, reduce your costs, and ultimately reduce your workload, outsourcing legal disputes needs to be combined with the right legal technology. “Big Law is all about outsourcing. Not only are more and more companies doing this, but the industry is also outsourcing an increasing number of high-quality departments, often laying off administrative and operational staff in the process. Decisions carry some risk, but also great rewards,” the report says. This means that more and more legal tech companies are adopting more technology-driven solutions that can help in-house legal teams get more work done in less time and more cost-effectively than if that work is done by an outside law firm or legal outsourcing firm. As a result, in-house legal teams now need to consider even more considerations when deciding which tasks to outsource and which to perform in-house.
There are so many different types of law firms out there that your law firm may not be an expert in all areas. By outsourcing specific legal services to contract lawyers, you can meet all of your clients` needs without having to hire a full-time employee. Another point of criticism is that people who do legal work may not be bound by the necessary ethical standards. [25] The legal outsourcing process is contrary to the American Bar Association`s Standard Code of Conduct. [26] However, there have been ethical opinions from various local bar associations (New York,[27] San Diego[28]) and recently from the American Bar Association[29] discussing ethical legal outsourcing and how to achieve it. However, it is criticized that the use of legal outsourcing is a violation of ABA Model Rule 5.4, which prohibits lawyers from sharing fees with non-lawyers, as well as the prohibition on the exercise of rights by foreign non-lawyers. The following legal processes are often outsourced to professional service providers: Clio, Legal Trends Report, Clio.com www.clio.com/resources/legal-trends/ Since many service providers are located around the world, it is possible to shorten delivery times. While in-house legal teams based in the US fall asleep (hopefully!), workers in India, Singapore and the Philippines will go to work. Jet lag means that no time is wasted. This phenomenon has been part of the legal experience since the 1950s, when it was limited to patents.
[6] Later, companies began outsourcing certain services to backdoor companies. The process of outsourcing part of the legal process to different countries is at an early stage with relatively constant market growth. [7] The outsourcing of court proceedings has taken place mainly in countries that had previously used the wave of business process outsourcing. LPO`s suppliers have established themselves in Canada[1], India[8], the Philippines[9], the United States, Israel[10] and Latin America. [11] The range of process support services has expanded. According to a report published in The National Law Review, legal process outsourcing firms now offer assistance with legal client admissions, court appointments, human resources, IT and marketing automation. A recent report law.com confirms this trend, stating that law firms are now outsourcing “high-quality features,” including software and technology infrastructure. A recent study shows that the average lawyer spends less than three hours a day on the work they can actually charge. Lawyers who want to expand their practice and improve the client experience can therefore rely on outsourcing to reduce their burden.
Here are some advantages of outsourcing court proceedings: Lawyers work an average of more than 50 hours per week. Between juggling incoming calls, advising their existing clients, attending court hearings and trying to attract new clients, an extra pair of hands would work wonders in any practice. The pressure to do everything can be overwhelming, so law firms that are inundated with work can benefit greatly from outsourcing their routine tasks. Not sure where to start? Here are some specific areas where outsourcing legal processes can help your firm be more efficient: According to legal industry trends for 2020, law firms should offer their clients value that goes beyond traditional services and support. As businesses grapple with rising legal costs, outsourcing legal disputes is seen as a lucrative alternative. As a result, there is a growing emphasis on exploring legal outsourcing services as a viable solution. In order to remain competitive and profitable, more and more law firms are turning to legal outsourcing. Thus, the global market for outsourcing court proceedings is expected to grow with an average annual growth rate of 31.8% between 2019 and 2025. The size of the market says it all. It is estimated that global spending on outsourcing legal services in recent years has been more than $690 billion, with the United States and Europe accounting for about 60%. This implies a high demand for legal services, as companies and law firms are looking for an alternative strategy to handle large amounts of work while keeping costs low and profits high. The choice of legal process outsourcing (LPO) is increasingly becoming the norm today, as important legal obligations are performed by an external lawyer within certain parameters and schedules.
Independent lawyers only offer their services when your law firm needs help. When you become a freelancer, you can find qualified legal assistance at any skill level for any type of project or case. And a bonus? Hiring an independent lawyer is a great way to try out the employment relationship before deciding to hire a full-time hire. With LPO becoming more common in in-house legal departments, you may be wondering what exactly outsourcing legal processes looks like these days, especially if your in-house legal team plans to outsource some of the day-to-day tasks to legal outsourcing companies. One of the biggest advantages of outsourcing legal processes is that it is more cost-effective than doing everything yourself. The more hands you have on deck, the more work you can take and the more income you generate. Although outsourcing requires fees, the return on investment is worth it and is more profitable in the long run. The result is less pressure without the total price tied to a full-time employee. To solve these problems, corporate legal departments are increasingly resorting to outsourcing legal processes. This decision is of interest to corporate legal departments because it helps them overcome many of these issues with the benefits of people, processes and technology.