Is LPO the Legal Profession's Super Discounter?
I was listening to a news report on NPR last week commenting that 99 cents stores are experiencing a boom period during the current economic crisis. According to Business Week, as the U.S. faces a serious economic downturn, many Americans are seeking out the cheapest possible option when buying necessities. Enter ultra-discounters like Dollar Tree (DLTR), 99 Cents Only (NDN), and Family Dollar Stores (FDO).
All three retail chains have seen their stock prices surge this year, a rare bright spot in a stock market beaten down by the financial crisis and recession worries.
One can't help draw some comparisons with the continued growth of LPO during these extremely troubling times. Gavin Birer on his slaw.ca blog provides an excellent summary of the cataclysmic changes affecting the legal profession as a whole, while tying in three recent surveys discussing the positive outlook for LPO during this recession.
Now before anyone throws their arms in the air in disgust, the comparison is being made somewhat tongue in cheek, and as I mention below, is clearly not a comparison of apples and apples. However, for as long as large scale document review continues to represent such a huge proportion of the entire U.S. litigation spend, in troubled economic times, it makes perfect sense that this commoditized legal function will be outsourced to lower cost providers.
If one delves into this false comparison however, with any great vigour, it becomes remarkably easy to pull the argument apart. Within retail, the general consuming public accepts that the process delivery method, availability of all the name brands, customer relationship management, and overall facility infrastructure prevelant at the 99 cents stores won't compare favorably to the major retail outlets. The challenge for LPO is to continuously ensure that the highest standards of security and client confidentiality are maintained as well as providing a "work product" that stands up to intense scrutiny from a quality perspective.
All three retail chains have seen their stock prices surge this year, a rare bright spot in a stock market beaten down by the financial crisis and recession worries.
One can't help draw some comparisons with the continued growth of LPO during these extremely troubling times. Gavin Birer on his slaw.ca blog provides an excellent summary of the cataclysmic changes affecting the legal profession as a whole, while tying in three recent surveys discussing the positive outlook for LPO during this recession.
Now before anyone throws their arms in the air in disgust, the comparison is being made somewhat tongue in cheek, and as I mention below, is clearly not a comparison of apples and apples. However, for as long as large scale document review continues to represent such a huge proportion of the entire U.S. litigation spend, in troubled economic times, it makes perfect sense that this commoditized legal function will be outsourced to lower cost providers.
If one delves into this false comparison however, with any great vigour, it becomes remarkably easy to pull the argument apart. Within retail, the general consuming public accepts that the process delivery method, availability of all the name brands, customer relationship management, and overall facility infrastructure prevelant at the 99 cents stores won't compare favorably to the major retail outlets. The challenge for LPO is to continuously ensure that the highest standards of security and client confidentiality are maintained as well as providing a "work product" that stands up to intense scrutiny from a quality perspective.
posted by Mark Ross at
12:27 PM
Subscribe RSS feed
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home