Concerns Raised About Offshoring Legal Services to India
While legal process outsourcing to India has gained traction in recent years, many firms in the United States and the U.K. still refuse to consider offshoring because of concerns over data security, reports The Times of India. Although the LPO industry grew to $225 million in revenues in 2008, that represents just 5 percent of the
potential market, according to the story. In fact, a recent survey by ValueNotes Research showed that less than 3 percent of the law firm respondents had any past experience of offshoring legal services.
So what deters firms from sending work overseas? For starters, firms are apprehensive about data security and quality of work. On the other hand, firms do recognize that offshoring can result in substantial cost savings. Some firms looking to outsource are setting up joint ventures or subsidiaries to retain more safeguards over data while benefiting from a lower-priced labor pool.
Still, that may not be enough to satisfy clients hungry for savings now. Will law firms step up to the plate and embrace LPO as a way to cut costs? Gavin Birer at Slaw.ca doesn't think it's likely, unless law firms can find a way to benefit themselves in the process.
Posted by Carolyn Elefant on June 16, 2009 at 11:02 AM | Permalink
| Comments (4)