Can you still afford not to outsource?

Most of you don’t even need to read this post to know why outsourcing your legal work to countries like India, Philippines and South Africa may ultimately help you. You already know why.

Global mining giant Rio Tinto signed up contract with CPA Global last year to source legal work from India. For your information, outsourcing saved Rio Tinto $20,000,000 (20% of an annual budget of about $100,000,000). This announcement is not so shocking if you consider that Microsoft, GE, Intel and other major players are already enjoying huge savings from legal process outsourcing (LPO).

Pinsent Masons has signed an outsourcing deal for sending litigation work to global legal process outsourcing provider Exigent in South Africa.

In general parlance, Legal Process Outsourcing is a form of easy task management available to big and small firms/companies whereby the parent firm/company leverages on the legal expertise provided by legal service providers in various third world countries in order to fulfill a job or task that was once undertaken by the parent firm/company itself. In simpler words, it is the process of shifting a job to an external company that might have a totally different physical address.

There are several advantages to source legal work from countries like India such as

•    Getting external expertise
•    Access to new resources
•    Reduced turnaround time
•    Scalability
•    Cost savings

If you are a counsel, reading this post would make you think! A survey indicates that more law departments are keeping an increased amount of work in-house that may not be the answer for all.  The point is for law departments to be actively engaged in challenging the status quo, re-evaluating the mix of inside and outside resources, and seeking strategic opportunities to gain high-quality, cost-effective legal services in today’s challenging economic environment.

The need has become more pressing. What do you think?