Legal Process Outsourcing
Legal Process Outsourcing (LPO) is one of the fastest growing sectors in the Philippine BPO industry. This is mainly due to the financial difficulties currently experienced by many US, Australia, Canadian and British law firms, as a consequence of shrinking legal budgets. According to research conducted by knowledge process outsourcing firm Evalueserve, the global LPO industry employed over 5,200 professionals in the first quarter of 2010 with India and the Philippines leading the pack with an estimated annual profit of USD 300 million. Legal Offshoring services are expected to employ over 19,000 professionals and post an annual revenue of USD 960 million by December of 2015. Some LPO firms in India have even predicted an annual growth of as much as 200%, citing recession-related litigation in the U.S. However, their expectations have not yet been realized. This is because U.S. lawyers themselves are now looking at alternative options to address the legal recession, and cut down on job losses.
The global Legal Process Outsourcing (LPO) Industry grew by as much as 40-60% in the last year alone. Although some areas collapsed from the recession, litigation, document review, and corporate compliance services brought both business and profits to the Philippines.
More and more foreign and local law firms are now turning to the legal process outsourcing industry to cut down on their company's overheads and reduce company expenditures. According to Evalueserve, these overhead expenses are usually related to marketing, general administration, information technology (IT), accounting, clerical, legal and knowledge management, and account for about 17% of a firm's total expenditures. Companies that avail of legal process outsourcing (LPO) services reduce these costs by approximately 7%.
The biggest advantage of legal process outsourcing is that it is cost-effective and extremely efficient. A U.S. attorney typically charges anywhere from $150-600/hour for legal services and there is a good part of the work that can be outsourced to legal process outsourcing firms for a fraction of this cost which provides value to the client. Apart from that, legal process outsourcing (LPO) firms sometimes have a faster turnaround time processing legal documentation, because they specialize in this. Private law firms and the legal departments of businesses simply lack the time, infrastructure, and technology to efficiently manage this procedure.
LegisPro is a private, 100% equity capitalized legal process outsourcing company that aims to provide value to clients by minimizing the costs of legal support services while ensuring quality, accuracy, confidentiality and timeliness.
Why the Philippines?
- For business support functions (such as shared services and business process outsourcing) the Philippines has taken over the lead in the global ranking from India, after having challenged the top position for several years. This is the first time that India is not in the leading position for these activities. The Philippines offers a similarly attractive business environment for international business support functions as India, but has not had the same labor cost increases as have occurred in various Indian 'hot spots' in recent years. (IBM Global Location Trends 2010 Annual Report).
- Philippines is one of the largest English-speaking nations with a strong information-technology orientation and a talent pool of around 30 million.
- No other LPO destination country can boast of a closer cultural affinity and more similar legal and educational system with the United States than the Philippines.
- The number of Philippine lawyers who sit for and pass U.S. bar exams annually gives the Philippines an advantage over the other legal outsourcing destinations, namely India, China, or Malaysia.