Legal Process Outsourcing Could Lower Compliance Costs

Lora Bentley

In the latter days of the Bush Administration and the earliest days for President Obama, federal officials were fixated on correcting the economic downturn. We heard a lot about financial regulatory reform -- new agencies, new responsibilities for existing agencies, changes in how companies should address risk and so on.


Lately health care reform has been in the news more prominently than financial regulatory reform, but that doesn't mean it has disappeared from the agenda. And George Hefferan, the sales VP and general counsel at Mindcrest, poses a good question at law.com: Will the increased compliance burden resulting from financial regulatory reform create a bigger market for legal process outsourcing?


Frankly, when I first heard about it, the concept of legal process outsourcing scared me a little, as a potential consumer of legal services, and as someone with a U.S. legal education. Why would I want my legal work to be done by someone in a different country? Yes, they are undoubtedly educated, but the laws here are certainly not the same as the laws there. Right?


Well, of course, my initial reaction was naive. First, the work would be labor intensive, and not necessarily require extensive expertise in a specific area of the law. The examples Hefferan offers are document review and basic research. (I would emphasize the "basic" there.) And as he points out, the work that is outsourced would still be supervised by the company's outside or in-house counsel. These are things I would have realized had I stopped to think before simply reacting.


What I did not know is that the American Bar Association has approved the practice. Hefferan says:

In sanctioning the use of LPO companies, the ABA recognized how smaller firms can use offshoring to more effectively represent clients -- a justification even more important for small or medium-sized corporations, which face a disproportionately heavier compliance burden than larger entities.


Those that choose to leverage LPO, however, must vet providers as thoroughly as they would any other outsourcing company, if not moreso. The savings realized are "meaningless," Hefferan says, "if the quality of the work does not meet or exceed American legal standards."

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Add Comment      Leave a comment on this blog post
Aug 19, 2009 5:39 PM Vikram Doddamani Vikram Doddamani  says:

I agree, even though cost saving is a major factor, but QUALITY of work is of atmost importance.


Vikram Doddamani |

vikram@sourcehubinc.com |

www.sourcehubindia.com |

Nov 30, 2009 11:19 AM Qim Qim  says:

Legal Process Outsourcing,its a good policy.i think its provide lower cost also a good quality.

Nov 3, 2010 2:30 PM Padmavathi Shanthamurthy Padmavathi Shanthamurthy  says:

At the best off-shore legal outsourcing companies, the services they provide compare favorably with much of what attorneys produce at high-quality law firms in the West.  In at least one case, the off-shored services are managed on-site by a reputable American law firm, and supervised by a team of U.S.-licensed attorneys who have been practicing at the top of their fields. This gives clients both quality assurance and accountability. Also, when corporations and law firms outsource legal services to the best LPO companies, the work is done by top law graduates, experienced lawyers, and/or former law professors from some of the best companies, law firms and law schools in India. And again, often those recruits in turn are trained and supervised by respected U.S. or U.K. attorneys. 

Padmavathi Shanthamurthy

SDD Global Solutions

high-end legal outsourcing

May 2, 2014 12:02 PM shina shina  says:
LPO is a leader in the legal global supply chain in the provision of legal services. Reply
Dec 8, 2015 7:00 AM Liana Jett Liana Jett  says:
Nowadays, outsourcing legal process has high potential and also increased the relationship between countries greatly. Initially it was a major concern like how would other country would know US laws. However, this major concern has been reduced as the employees started analyzing and understanding the American Law and proving the efficiency in the work. More law firms now rely on outsourcing to focus on other core business. This also reduced cost in outsourcing which in turn benefits both outsourcing and outsourced countries market. Initially with the fear LPO firms were providing few services, as the trend increased, they started working as paralegals and now providing legal and corporate services, litigation support, ediscovery, immigration support, administrative, secretarial services. Reply
May 13, 2016 9:21 AM bennyhenson bennyhenson  says:
Due to globalization of businesses Legal Industry is also growing. legal process outsourcing helps law firms and medium corporations to save their time and money.you can get your work done within a specified time by legal experts at a reasonable price. Reply

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