Can South Africa Challenge India as the LPO Destination of Choice?

I blogged a couple of weeks back on Magic Circle firm Evershed’s report, Law Firm of the 21st Century. Although the report itself makes no overt reference to legal process outsourcing and offshoring, the firm itself has clearly been proactive in instigating what is to all intents and purposes an LPO relationship with a South African law firm.

Legalweek.com reported on Thursday that Eversheds is set to outsource legal work to its new South African ally Routledge Modise. According to the article,

"Eversheds has pinpointed the firm as an especially lucrative partner because, in addition to the low cost-base, the country has a similar legal system and native English-speaking lawyers."

Click here for the full article.

While we’re on the South African theme, I noticed that on June 5, my former senior partner from Underwoods Solicitors, Kerry Underwood chaired a seminar program for the South African High Commission on legal process outsourcing to South Africa. The event was apparently a great success with representatives from several FTSE 100 companies in attendance. Click here for a pdf of the conference agenda.

My own interest in legal process outsourcing was of course initially fostered while practicing at Underwoods under Kerry’s guidance. South Africa has certain advantages over India; not least that for U.K. law firms there is only a one hour time difference. In terms of a cost comparison between the countries however, India’s talent pool is still considerably cheaper. Given that the quality to a certain extent is dependent on the level of U.S. and/or U.K. involvement, and that cost remains the ultimate driver, whether South Africa can mount a realistic challenge to India, as the LPO destination of choice, remains in my opinion unlikely.