London's Law Schools Raise Fees

Every now and then I come across a story within the legal profession, facially unrelated to legal process outsourcing, yet so preposterous, that I feel compelled to draw it to the attention of my readers.

In the same week that legal giants Allen and Overy, and Latham and Watkins announce just shy of 700 layoffs, London’s leading law schools have stunned the legal market by hiking their Legal Practice Course (LPC) fees by an inflation-busting 8 per cent. Check out the following link from thelawyer.com for the full article. For my U.S. readership, who may be unaware of the nuances of the U.K. legal profession’s route to qualification, the LPC is the final year of study required prior to entering the profession as a trainee solicitor.

This marketing master stroke of course comes at a time when job prospects for trainee solicitors and young associates continue to deteriorate. On both sides of the Atlantic major firms are now routinely pushing back the start dates for new trainees and associates.

I believe that this is an incredibly short sighted move and one that will come back to haunt the London law schools in years to come.

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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.

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Special Offer for American Conference Institute LPO Summit

American Conference Institute’s (ACI) third LPO Summit is taking place on February 23-24 in New York. The event is aimed at both in-house counsel and law firms who are still evaluating the viability of offshore outsourcing, plus those who already have outsourcing operations in place. Click here for the conference home page.

Legal Process Outsourcing Blog readers can obtain a substantial discount on the conference attendance fee. The blog discount price is $1595. Register via the ACI conference website and use priority code SP2.

Expert speakers include among others: Paul Greenwood, CIO, Clifford Chance LLP., Michael Mensik, Partner, Baker & McKenzie, John Rosenthal, Partner & Chair, E-discovery Group, Winston & Strawn LLP., David Cohen, Senior IPR Litigation Counsel, Nokia. For the full list of conference speakers, click here.

I will be hosting a panel entitled, “An Overview of the Pricing Models for Outsourcing - Examining Market Rates to Secure the Best Deal”.

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