Legal Process Outsourcing

Messages of Support from Legal Outsourcing Providers and Clients

noreply@blogger.com (Mark Ross) — Tue, 02 Dec 2008 19:37:00 +0000

I was extremely glad to hear from my friends at leading LPOs, Integreon and Pangea3, both of whom have offices in the Mumbai area, that all their employees are safe and well. The National Law Journal carried a piece on the subject today commenting that LPO clients have been quick to express their concern and support. Click here for the article.

On behalf of LawScribe's entire team I would like to extend our thoughts and best wishes to all those affected by last week's terror attacks.

Legal Outsourcing Chapter Webinar Reminder

noreply@blogger.com (Mark Ross) — Tue, 25 Nov 2008 16:58:00 +0000

IAOP Legal Outsourcing Chapter Webinar, Dec 10th, 11am EST

The third meeting of the IAOP Legal Outsourcing Chapter is taking place on December 10th at 11am Eastern. Once again, due to the diverse geographical dispersion of the Chapter’s stakeholders the meeting will be conducted via webinar. For those interested in attending the webinar feel free to either contact me directly or alternatively click here to register.

I’m delighted to welcome to the speakers’ faculty, Patrick J. Hatfield, a partner at Locke Lord Bissell & Liddell LLP and recognized authority on drafting and negotiating BPO and LPO agreements, and Tariq Hafeez, President of LegalEase Solutions LLC, a long established LPO provider.

Webinar Agenda

1. Welcome, Introduction and Brief Industry Update – Mark Ross, VP Global Sales and Marketing, LawScribe.

2. The Legal Outsourcing Agreement and Key Terms to Include – Patrick J. Hatfield, Locke Lord Bissell & Liddell LLP.

Whether it is your law firm or your law department engaging LPO resources, this session will identify some key terms to include in the agreement.

- For the law firm- why the typical engagement letter may not be enough
- For the law department - why the engagement letter with the LPO firm or the law firm using LPO resources should include more than the usual terms
- Additional terms for the LPO agreement - assurances about payment, privacy, security, quality review, background checks and ownership of information and audit rights

3. What Not to Outsource - Tariq Hafeez, Esq. President. LegalEase Solutions LLC

- Overview of types of legal functions that are currently being outsourced
- What not to outsource from a client's perspective
- What not to outsource from the LPO Provider’s perspective

Financial Crisis and Outsourcing

noreply@blogger.com (Mark Ross) — Mon, 24 Nov 2008 23:43:00 +0000

While I fully appreciate that the flavor of the month is to hail the financial crisis as catalytical to the growth of LPO, I read an extremely interesting interview on the Shared Services and Outsourcing Network’s site, discussing the impact the crisis will have on the entire outsourcing sector. Although the interview is probably a few weeks old now, it still makes for an interesting discussion.

The experts on the panel interview, conducted by Jamie Liddell, online editor of SSON, included, among others, Charles Aird, Senior Managing Director of Outsourcing/Shared Services & Offshoring at PricewaterhouseCoopers; Brian D. Smith, Partner & Managing Director, Financial Services at TPI; and Dr. Thomas Tunstall, Advisory Liaison at ACS.

Click here to read the full interview. I have paraphrased below some of the major points to emerge from the discussions:

• There may be an initial downturn or at least a slowdown in discretionary activity in the short term.

• This lull will be followed by a large amount of activity in the coming years.

• There may be a trend to move away from India.

• There will be a slowdown in the trend to captives.

• Both the weakness in the global economy, and the possible movement away, could have a positive impact and feed through to lower wage inflation in India.

• On the ITO side, India will remain the clear market leader. In the BPO arena, we will see more variety, and different countries emerging.

Will the Law Society Regulatory Review Cover LPO?

noreply@blogger.com (Mark Ross) — Sun, 23 Nov 2008 01:58:00 +0000

I wrote 18 months ago about the necessity for some form of independent regulation of the legal outsourcing industry. See my article, Its Time for Regulation and Accreditation of Legal Process Outsourcing Companies. Readers may recall that I proposed a set of minimum standards, including among others, independent verification of LPO companies’ offshore facilities. My quest for regulation doesn’t spring from any deep rooted desire for outside involvement within the industry. However, the excitement I and my peers, within leading LPOs, have for the industry, is certainly for me tempered at times by the concern I have that a couple of bad apples could one day spoil the entire barrel. Quite rightly, the security of client confidential information continues to be the number one concern of most potential LPO clients. It is also the cause célèbre of those within the legal profession’s anti-outsourcing lobby, who are hungrily waiting to pounce on any slip ups. How many times have you read on message boards from Joe the Attorney, “Just you wait until one of those disgruntled Indian LPO employees…..”, well you know the rest.

Perhaps the first rung on the accreditation ladder might actually be some guidance and external regulation from the U.K. Law Society itself, directed towards those that procure legal outsourcing services. Let me explain. I read with interest today that Lord Hunt of Wirral, MBE, has been charged with the task of conducting an independent review of the future regulation of law firms. Lord Hunt states his task is to,

“Provide comprehensive advice on what is needed to achieve effective, proportionate and modern regulation for all parts of the increasingly diverse legal services market.”

The Review website goes on to say that everyone involved with the provision, procurement or purchasing of legal services will be encouraged to make a formal submission to the Review. Interested stakeholders forming the Corporate Liaison group, for example, and contributing to the review, include magic circle firms Allen & Overy, Clifford Chance and Freshfields. As we are well aware, all three of the aforementioned legal giants have either already dipped their toes into the LPO waters or have signaled their intent to do so.

If Lord Hunt truly intends to provide an all-encompassing, comprehensive advice, that genuinely incorporates everyone involved with the provision, procurement or purchasing of legal services, then the LPO model must be examined. I have emailed Lord Hunt today, with a link to this post, and I eagerly await further updates on the Review website.

The Hunt review will begin taking evidence in December and its website can be found at http://www.legalregulationreview.com/home.html

I’ll keep my readers posted on developments.

India’s Major Law Firms Hiring not Firing

noreply@blogger.com (Mark Ross) — Thu, 20 Nov 2008 19:16:00 +0000

According to TheLawyer.com, India’s leading firms have been embarking on something of a hiring spree. FoxMandal Little has apparently boosted its headcount by 63 lawyers over the last year. The article doesn’t specify whether these lawyers have been recruited to work on domestic clients, or for the firm’s second foray into the LPO world.

If any of my readers have some insight I’d be interested to know more.

Click here for the full article.

Low-Cost, No-Frills, Legal Support

noreply@blogger.com (Mark Ross) — Wed, 19 Nov 2008 06:06:00 +0000

If we needed any further evidence of the growing clamor for lower legal fees then check out the piece covering The Lawyer's in-house summit, recently held in Berlin. For my U.S. readership, substitute South West, for Easy Jet.

Discussing the inflated fees charged by law firms, often reflective of a number of "add-ons", including, 24-7 access, meeting facilities, having trainees in the business, and knowledge-sharing, Søren Lundsberg-Nielsen, group general counsel for Group 4 Securicor was unapologetic in advocating a no-frills approach, akin to the low-cost airline industry.

“I raised the question of whether in the current circumstances and economic situation there’s now a space for selling high-quality legal services without the additional add-ons.....It means paying only for the services you want, instead of having to get into a debate about rebates and reductions." Søren Lundsberg-Nielsen.

Click here for the full article.

Legal Outsourcing Events on Two Continents

noreply@blogger.com (Mark Ross) — Sun, 16 Nov 2008 01:29:00 +0000

Back in June, Legalweek.com reported on Eversheds' alliance with South African law firm 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.

I raised the question in my blog (click here for the original piece) as to whether South Africa could ever emerge from India’s shadow and launch a challenge as the LPO destination of choice.

Well, while I was flying cross country to Orlando, for the Florida Bar, Legal Outsourcing in India conference, 8000 miles away my former senior partner, Kerry Underwood, of Underwoods Solicitors, was hosting the South African Legal Process Outsourcing Association’s (SALPOA) first meeting.

I have paraphrased below, some of the Association’s key aims and adjectives:

1. Act as a catalyst for the promotion and facilitation of the growth of the LPO industry in South Africa

2. Engage with the various bodies having an interest in the promotion of LPO

3. Conduct and facilitate research on various technology and other issues relevant to LPO in South Africa

4. Understand the needs of potential clients in the corporate and legal sectors of the United States and other potential markets

5. Encourage and support broad participation by players in South Africa and the region by providing education and support

As for the Florida Bar event, despite a less than stellar attendance, delegates were treated to a conversation that has clearly progressed beyond the theoretical, to the practical. Panelists provided real life case studies both in the document review and patent support outsourcing arenas. The event was filmed and the materials are available for purchase through the Florida Bar Association website.

IAOP Legal Outsourcing Chapter Third Webinar

noreply@blogger.com (Mark Ross) — Thu, 06 Nov 2008 19:47:00 +0000

Florida Bar CLE India Legal Outsourcing Conference

noreply@blogger.com (Mark Ross) — Wed, 05 Nov 2008 21:22:00 +0000

A final reminder to my readers about the upcoming Florida Bar CLE Legal Outsourcing event.

This half-day program will examine the Indian LPO industry and how U.S. corporations and law firms are using LPO services, or why they are choosing not to use such services. The first three hours will focus on how LPO is used in the following areas of law: (1) litigation and document review; (2) corporate transactional; and (3) intellectual property. The fourth hour will focus on ethics, professional responsibility and legal malpractice issues raised by use of LPO services, and a discussion of what impact India’s legal market opening to foreign law firms may have on the Indian LPO industry. Click here for more information on the Florida Bar CLE website.

This seminar will benefit private attorneys, in-house counsel, and corporate executives who are already experienced with using LPO services in India, as well as those seeking to learn about the increasing use of LPO services and how it may affect their practices. Using case studies, panelists will discuss real life examples of the issues and obstacles that providers and consumers of LPO services encounter in putting together an LPO transaction.

LPO LinkedIn Overkill

noreply@blogger.com (Mark Ross) — Tue, 04 Nov 2008 03:39:00 +0000

Ok, to say I'm flabbergasted would be somewhat of an understatement. I have just signed off from LinkedIn having determined that there are a total of 14, yes FOURTEEN, separate Legal Outsourcing groups.

Two of the groups (with quite delicious irony) profess to be one of a kind. Eleven of the groups have between one and thirty members with several individuals signed up to three or more of the various groups.

I am a major advocate of LinkedIn, and of course the LPO industry, however, I have to ask, what if anything are these groups bringing to the table? Are they truly effective forums for disseminating ideas and concepts relevant to legal outsourcing?

Perhaps I'm being overly harsh, and you never know, from small acorns, fourteen mighty legal outsourcing groups may one day grow.

Another AmLaw 100 Firm to Dissolve

noreply@blogger.com (Mark Ross) — Wed, 29 Oct 2008 15:54:00 +0000

Is anyone safe?

Thelawyer.com reports today that Thelen Reid Brown Raysman & Steiner LLP will be closing its doors on December 1. It was less than two years ago that Thelen Reid & Priest LLP merged with Brown Raysman Millstein Felder & Steiner, LLP, in what was the largest law firm merger of the year. Poor economic conditions and mass defections were identified as the catalyst for dissolution.

I need to undertake some research into this as it relates to U.S. affairs; however I am aware that in the UK, college of law and law schools applications are dramatically on the up. The reason being, that given the current financial market turmoil, academically qualified individuals who previously may have considered banking and finance as a career path of choice are opting for the relative security of the law.

Numerous cliches spring to mind, but I guess everything is relative.

Indian Law Firms to Scale Dramatically

noreply@blogger.com (Mark Ross) — Tue, 28 Oct 2008 17:38:00 +0000

The Indian Parliament witnessed two crucial pieces of legislation being introduced over the last couple of weeks.

The Limited Liability Partnership (LLP) Bill 2008(click here to access) and the Companies Bill 2008(click here to access) allow the creation of limited liability partnerships while at the same time removing some of the previously imposed archaic restrictions on the number of partners allowed and the capability of taking on outside finance. The new operating structures will enable law firms to scale up their operations dramatically.

I have blogged many times about the necessity of the Indian legal profession having a level playing field before there is any relaxation of the restrictions imposed by the Advocates Act, prohibiting foreign law firms from setting up shop in India. Perhaps this new legislation is just that, a leveler for the Indian legal system sweetening the Bar Council and the Society of Indian Law Firms, prior to the inevitable entry of the UK’s magic circle, and the AmLaw top 10.

Commoditization and Economic Pressure Alter GC Relationship with Outside Counsel

noreply@blogger.com (Mark Ross) — Mon, 27 Oct 2008 22:28:00 +0000

Law.com's In-House Counsel ran an interesting article today from the Fulton County Daily Report. Click here for the full article. The overarching theme being that General Counsel are becoming increasingly frustrated with rising legal fees when many legal tasks are becoming commoditized and department budgets being tightened.

Florida Bar CLE Committee hosts: Legal Process Outsourcing in India – What You Need To Know About Who, How, Why & Why Not

noreply@blogger.com (Mark Ross) — Mon, 27 Oct 2008 19:51:00 +0000

A reminder to my readers about the upcoming Florida Bar CLE Legal Outsourcing event.

This half-day program will examine the Indian LPO industry and how U.S. corporations and law firms are using LPO services, or why they are choosing not to use such services. The first three hours will focus on how LPO is used in the following areas of law: (1) litigation and document review; (2) corporate transactional; and (3) intellectual property. The fourth hour will focus on ethics, professional responsibility and legal malpractice issues raised by use of LPO services, and a discussion of what impact India’s legal market opening to foreign law firms may have on the Indian LPO industry. Click here for more information on the Florida Bar CLE website.

This seminar will benefit private attorneys, in-house counsel, and corporate executives who are already experienced with using LPO services in India, as well as those seeking to learn about the increasing use of LPO services and how it may affect their practices. Using case studies, panelists will discuss real life examples of the issues and obstacles that providers and consumers of LPO services encounter in putting together an LPO transaction.

Financial Crisis Hits BPO Industry

noreply@blogger.com (Mark Ross) — Thu, 23 Oct 2008 18:24:00 +0000

ValueNotes reported this week on a significant reduction in the number of deals within the BPO industry. The number of deals dropped from 109 in the first quarter of 2007 to 78 in the first quarter of the current year. The second quarter of this year saw 58 deals compared to 101 in the same period last year.

While the generally accepted viewpoint is that financial pressures will result in an upturn in the BPO, KPO, and LPO markets, I don't subscribe to the contention that this will materialize in the short-term.

Outsourcing initiatives of any substantial scale, irrespective of whether they relate to BPO, KPO, ITO or LPO, require a major degree of investment on the front end in terms of time, effort, money, and firm or corporate wide buy-in. It is entirely normal for the due diligence, RFP and pilot project process, for a Fortune 500 company, or Am Law 200 firm, prior to engagement with an LPO, to take 6-12 months or more. Key stakeholders on the client side have their hands quite full at the present moment in time dealing with more pressing matters than embarking on new outsourcing initiatives. We may even in the short-term witness a number of existing initiatives being discarded while the markets are in such a state of turmoil.

The argument for outsourcing, however, is stronger than ever before. I have no doubt that in the medium to long term we will once again be reporting on record numbers of deals in the space

Freshfields Managing Partner: "LPO Inevitable and Will Change Legal Market"

noreply@blogger.com (Mark Ross) — Mon, 20 Oct 2008 03:33:00 +0000

The Financial Times released their Innovative Lawyers report rankings on Friday. This was the third year of the FT report examining change and innovation within the legal profession. It was particularly gratifying to read the lead article “Thought Leaders” by Reena SenGupta and Paul Solman. Issues that I’ve blogged about many times, that in my opinion are inextricably linked to each other, all featured, including the future of the global law firm, the U.K. Legal Services Act, the impact of globalization, LPO to India, and the traditional hierarchical law firm structure.

In fact the report’s lead article went so far as to say that:

“The trend that is having the most impact on the thinking of the partners at top law firms, is the impact of globalisation and its intersection with people and technology. In particular, the way in which legal work is resourced and the location in which it gets done is coming under greater scrutiny. Outsourcing to India was the theme of many top-ranked submissions both from company legal departments and private practice”.

Freshfields managing partner, Ted Burke is quoted as saying:

“LPO is inevitable and will radically change the legal market. We will see more unbundling of the way legal services are currently delivered.”

Click here to access the FT Innovative Lawyers home page.

Last Chance to Register for Chicago Legal Outsourcing Conference

noreply@blogger.com (Mark Ross) — Fri, 17 Oct 2008 21:55:00 +0000

This is my last reminder to readers that IQPC is hosting a two day Legal Process Outsourcing conference, at the Raddison O'Hare, Chicago, on October 21-22. Click here for an overview of the conference.

Hear real life case studies relating to document review and intellectual property support, from Am Law 100 attorneys and Fortune 500 general counsel, who have taken the plunge and outsourced legal work to India.

This event will gather some of the world's top LPO executives, in-house and outside counsel with practical LPO experience, to share ideas and insight on the legal profession and the pros and cons of legal outsourcing.

Legal Process Outsourcing Blog readers can obtain a special discount to attend the LPO conference for only $999! Register by calling 1-800-882-8684 or clicking on the following link to view the detailed agenda and registering online. Either way, quote your Legal Process Outsourcing Blog discount registration code, MR999 to achieve the special offer discount.

I’ll be there, chairing the conference, as well as hosting the Intellectual Property panel, along with Steve Hassid of Greenberg Traurig. If any readers would like further information on the conference they can also contact me directly.

Worrying Times Ahead for the U.K. and U.S. Legal Profession

noreply@blogger.com (Mark Ross) — Wed, 15 Oct 2008 23:55:00 +0000

The legal profession is currently in a state of flux. I have no desire to be a prophesier of doom, but I suspect extremely worrying times lie ahead for the profession as a whole, and specifically for law graduates on both sides of the Atlantic. The potential for currently choppy waters to be whipped up into a fully fledged storm was hammered home to me today when I read an article on thelawyer.com. Clifford Chance, the previously impermeable rock of cross-Atlantic legal giants, announced yesterday the laying off of 20 associates in the firm’s NYC and Washington D.C. offices.

Over the last few months we’ve witnessed Cadwalader Wickersham & Taft make 131 layoffs, Heller Ehrman dissolve, and U.K. firms earning their bread and butter dealing with conveyancing announce department closures and layoffs on a worryingly regular basis. In the U.K. alone the total number of layoffs over the last few months among the top 200 firms, now stands at 740.

Even as a trainee solicitor I believed that the market was saturated with law graduates. Fifteen years ago, there were too many law graduates competing for training contracts in the U.K. and junior associate positions in the U.S. This was before advances in technology enabled significant elements of many legal functions to be unbundled; before the Legal Services Act, alternative business structures and Tesco law; before Legal Process Outsourcing connected vast pools of talent in India, the Philippines and South Africa to law firms and legal departments in the U.S. and U.K.; and of course before the current Financial crisis.

Many may point to the impending retirement of the baby boom generation as the flip side to this argument. I’ve heard this many times, that there will be a dearth of high quality talent as these baby boomers head off into the sunset. I disagree. These individuals aren’t retiring from junior associate positions. These retirees are simply cogs that no longer require replacement in the legal profession’s ever turning evolutionary wheel. If one accepts my argument that the market was saturated to begin with, then perhaps without the variety of developments I highlighted above, the equation would balance. However, given the other forces at play, we’re not going to witness a “one out, one in” policy here.

I don’t believe the legal profession has begun to witness the full force of the financial crisis tsunami soon to reach its shores. Even though times of economic volatility inevitably lead to spikes in litigation, this will be outweighed by the disappearance of huge revenue streams from corporate clients that simply don’t exist anymore. As the Lawyer.com comments, when Clifford Chance merged with Rogers & Wells in 2000, R&W was billing over GBP9m to Merrill alone. Corporate legal departments will be tightening their belts like never before and undoubtedly either driving their outside counsel to lower fees, bringing work back in-house or exploring the possibilities available through offshore legal process outsourcing.

In another thelawyer.com article, Tony Williams, a former Clifford Chance managing partner and now principal at Jomati consultants highlights the example of a firm with a 25 per cent profit margin with a fee income that falls just 20 per cent, entirely plausible in the current financial climate. This firm would witness its profit fall by 80 per cent in the short term as costs simply cannot be adjusted quickly enough to take into account the revenue reduction. Add into the mix horrendous rises in indemnity insurance premiums and a tightening of credit, well you don’t need to be Nostradamus to predict bleak times ahead.

Florida Bar Hosts Legal Outsourcing Conference

noreply@blogger.com (Mark Ross) — Mon, 13 Oct 2008 17:09:00 +0000

In what I believe is the first legal outsourcing conference to be formally associated with an individual Bar Association, the Florida Bar Continuing Legal Education Committee has teamed up with the South Asian Bar Association of Florida for:

Legal Process Outsourcing (LPO) In India – What You Need to Know About Who, How, Why and Why Not.

The conference is being held at the Hyatt Regency Orlando International Airport, on November 14, 2008. Click here for the full agenda and registration forms.

Of course it was The Florida Bar Board of Governors that on July 25, 2008 approved Ethics Opinion 07-2 of the Florida Bar Association. Click here for the full Opinion.

I will be speaking on the Intellectual Property Panel, alongside, Mihir Parikh, Assistant Professor, University of Central Florida.

Underwoods Outsources Personal Injury Work to South Africa

noreply@blogger.com (Mark Ross) — Fri, 10 Oct 2008 21:41:00 +0000

I was delighted to receive an email yesterday from my former Senior Partner, Kerry Underwood, of Underwoods Solicitors. Underwoods has signed a deal with an unnamed law firm for the outsourcing of fixed cost personal injury cases to South Africa. Check out the article in today’s U.K. Law Society Gazette. Underwoods, which is acting as the unnamed firm’s agent, will be charging a flat fee of £500 per case.

My interest in, and passion for, the legal process outsourcing industry indubitably stems from my three years at Underwoods. I joined the firm shortly after the introduction of fixed costs for routine road traffic accident cases. Fixed costs came into being on 6th October 2003. Let me initially take this opportunity of explaining briefly how the fixed cost system works. Generally speaking, in the U.K., attorneys’ fees are not recoverable from a client’s damages. The fees are recovered from the losing party, in addition to recoverable damages. This somewhat archaic system is referred to as the “indemnity principle”. Following their introduction, fixed costs applied to pre-issue (i.e. cases which had not reached the filing of proceedings) road traffic accident cases (RTAs) where the ultimate value of compensation recovered by the claimant was less than £10,000. The amount of recoverable costs was calculated on the basis of a fixed fee of £800, plus 20% of the damages figure up to £5,000, and 15% of the damages between £5,000 and £10,000. So, if an RTA case was eventually settled for £5,000, the law firm received a £1,800 fixed fee.

Kerry and Underwoods Solicitors’ Managing Partner Robert Males had been instrumental in the development of the new fixed costs regime. However, even in advance of the October 2003 start date, both had been aware of the potential of legal process outsourcing to lower cost common law jurisdictions. I recall my interview with Kerry, for a position at Underwoods, in the Summer of 2003. He had explained back then his vision of the outsourcing of routine, commoditized legal work to South Africa. This was the first time I had ever even contemplated the possibility that certain types of legal work were suitable for outsourcing.

Even to those of us with a modicum of foresight, a number of possibilities became instantly apparent. First, that the status quo had been well and truly broken. The tables had been turned. It was now clearly counter productive for law firms earning their daily bread through running personal injury cases, to breed inefficiency, and conduct these cases utilizing senior attorneys. The days of billing these individuals out at over inflated hourly rates came to a juddering halt on October 5th 2003. Second, in order to remain competitive, and make a reasonable profit by running such a case load, it was obvious that these cases had to be processed as efficiently, quickly and frankly as cheaply (without compromising quality of representation), as humanely possible. Third, if one factored in the referral fees, paid by many, (not Underwoods, I might add) road traffic accident firms’ profit margins had been dramatically slashed overnight. Without exploring alternative methods of processing large volumes of such cases, in time, many firms would be unable to survive.

My first responsibility on joining Underwoods was to create a workflow system which would allow the effective outsourcing of road traffic accident cases to the firm’s South Africa office. The principals I learned during this exercise relating to the unbundling of a legal matter and the creation of a process, enabling a non UK qualified, yet common law trained attorney, to handle such cases, have stood me in good stead during my time with LawScribe.

I was enthused to read the Law Society Gazette article and I wish Underwoods every success with this first batch of cases.

LawScribe CEO Interviewed in Daily Journal Legal Outsourcing Article

noreply@blogger.com (Mark Ross) — Wed, 08 Oct 2008 21:35:00 +0000

In growing evidence of the increasing clamor over all things LPO, California’s largest legal news provider, the Daily Journal, ran a front page editorial featuring LawScribe President and CEO, Kunoor Chopra.

Daily Journal reporter Amanda Becker also interviewed a number of LawScribe clients for the article, including a senior associate from an AmLaw 10 firm. The associate, who spoke on condition of anonymity, commented that his firm regularly outsources patent-related searches, and document review work to LawScribe.

The article also referenced a large-scale document review project undertaken for another LawScribe client and provided first hand, client assessment of the project.

I eagerly await the day when clients realize that they have more to gain than lose by going public on their utilization of offshore legal outsourcing. Given current market conditions, and the economic pressures faced by corporate America, I anticipate that day is only just round the corner.
For the full Journal article click here.

On a separate but related matter in that it pertains to LawScribe, I'm pleased to announce the launch of our new website, www.law-scribe.com.

Economic Downturn Affecting UK Law Firms

noreply@blogger.com (Mark Ross) — Thu, 02 Oct 2008 22:39:00 +0000

Although not a staggering number by any stretch of the imagination, the 668 total redundancies (layoffs for this side of the pond) among U.K. law firms, documented by the TheLawyer.com on their new Job Watch page, is surely a sign of worrying times ahead. Click here to access the page. It is a sad state of affairs that such a reputable forum as TheLawyer.com deems it necessary to create a webpage aimed at:

“providing up-to-the-minute news of redundancies and breakdowns by location and skill set."

I have written numerous times about the necessity for law firms to re-evaluate their traditional operating model, if they wish to survive and thrive in today’s global economy. This was never truer than now given the harsh economic realities we are currently experiencing. While over the medium to long-term I anticipate that the restructuring we are now witnessing will induce a growth spurt in the demand for LPO, at this moment in time I urge my colleagues within the industry to maintain a degree of decorum when discussing the issue.

Special Offer for IQPC Legal Process Outsourcing Conference

noreply@blogger.com (Mark Ross) — Thu, 02 Oct 2008 18:04:00 +0000

Regular readers will be aware that IQPC is hosting a three-day conference on Legal Process Outsourcing on October 20-22, 2008 in Chicago, IL at the Chicago Marriott® Southwest at Burr Ridge.

Attend the conference to hear real case studies and panel discussions on topics such as structuring and negotiating a best practices LPO agreement, improving contract management efficiency while working with LPO firms and measuring ROI of outsourced IP services processes.

This event will gather the world's top LPO executives, in-house and outside counsel with practical LPO experience, to share ideas and insight on the legal profession and the pros and cons of legal outsourcing.

Legal Process Outsourcing Blog readers can obtain a special discount to attend the LPO conference for only $999! Register by calling 1-800-882-8684 or clicking on the following link to view the detailed agenda and registering online. Either way, quote your Legal Process Outsourcing Blog discount registration code, MR999 to achieve the special offer discount.

I’ll be there, chairing the conference, as well as hosting the Intellectual Property panel, along with Steve Hassid of Greenberg Traurig. If any readers would like further information on the conference they can also contact me directly.

The Financial Crisis, LPO Conference and Study Tour Update, and Indian Legal Market News

noreply@blogger.com (Mark Ross) — Mon, 29 Sep 2008 22:38:00 +0000

The Financial Crisis and Firm Wide Buy-In for Legal Process Outsourcing

Stories and articles abound within the Indian legal press, on how the financial meltdown on both sides of the Atlantic will propel the still fledgling LPO industry into the stratosphere. Click here to read an article from the Hindu Business Line as a perfect example. Purely to play devils advocate for a moment, while I concur that in a tough economy, where the pressure to keep costs under control is of paramount importance, as much as there are drivers pushing the utilization of LPO services, there are some extra hurdles to overcome.

Achieving firm wide buy-in to a strategy of offshoring legal services functions, at a time of financial uncertainty, may not prove to be the easiest sales proposition, irrespective of how much financial sense it makes. The General Counsel, CEO, or Managing Partner you’ve been dealing with for the last couple of years will find other items rising to the top of the agenda, such as redundancies, department closures, forced mergers and the like. You don’t need to be a rocket scientist to work out that any LPOs or other third party providers for that matter, who were touting Heller Ehrman for business, will very quickly be turning their attention elsewhere. In terms of prioritization, major firms more than ever before, prior to looking overseas for the solution to reducing overhead, may simply cut unprofitable areas of practice and play the “leverage” game with those associates working in the still profitable practice areas.

That said, as I hinted above, I am to a certain extent playing devils advocate. Once the dust has settled I do agree with my peers within the LPO industry. The financial pressures many corporations and law firms are now experiencing, together with the anticipated litigation flowing from these troubled times will only serve as a springboard to the continued growth of the offshore legal process outsourcing industry.

PrinceOMC Legal Study Tour of Leading LPOs

From October 20-24, the independent management consultancy, and authors of the report, Legal Industry Outsourcing Trends 2008, princeOMC, are conducting an executive study tour of some of the world’s leading LPO organizations. LPOs on the tour itinerary include LawScribe, Integreon, Pangea3, and CPA Global. Click here to access the tour’s detailed prospectus.

IQPC Legal Process Outsourcing Conference Reminder

A quick reminder to my readers that I will be chairing IQPC's 1st Legal Outsourcing Conference, in Chicago, from October 20-22.

The conference will provide delegates with first hand insight into real life case studies from major corporations, AM law 200 firms and some of the world’s top 5 LPOs. The conference will gather top LPO experts to share ideas regarding the current changes taking place in the legal industry.

If any readers would like further information on the conference please feel free to contact me directly. Alternatively click here for the full conference web page.

Ongoing Talks on Liberalization of Indian Legal Sector

British Lord Chancellor, Jack Straw has met Indian Law Minister H R Bhardwaj and representatives of the legal profession in Delhi to discuss the liberalization of legal services and cooperation between the U.K. and Indian legal sectors. Click here for the full Ministry of Justice website article.

Jack Straw said that opening of the legal services market would be in the interest of legal systems in both Britain and India.

While I wholeheartedly concur with Mr. Straw's published sentiments, I suspect that the U.K. government is looking for a little more from the Indian legal sector than they in turn will be prepared to offer in terms of reciprocity.

The Financial Crisis and Legal Process Outsourcing Conflicts

noreply@blogger.com (Mark Ross) — Wed, 24 Sep 2008 00:58:00 +0000

I’ve read several articles over the course of the last couple of weeks referencing the recent turmoil in the financial markets and the potential impact this may have on the LPO industry. I came across this evening an interestingly novel perspective, and well written article on the outsourcing weblog by Gary Zeiss. Gary has previously contributed to this blog and has generously authorized my reproduction of his piece here. Over to you Gary:

The Financial Crisis and Legal Process Outsourcing Conflicts

By: Gary M. Zeiss (click here for Outsourcing Weblog bio)

While I've written about the effect of the financial crisis on general BPO and IT outsourcing services, I haven't yet discussed the potential for legal process outsourcing to move to center stage as a viable offshore alternative.

Given the tectonic shifts in the financial market that have occurred in the past two weeks, there is little doubt that an avalanche of litigation will ensue. In fact, it is possible that the quantity of securities litigation will be so great, and the amount of paper that requires analysis so large, that few companies will have any choice but to look to alternative sources to perform critical discovery tasks.

Where this gets really interesting is in the potential for legal conflicts. While anyone with experience in the LPO business will argue that these companies do not "practice law," the services rendered, particularly for eDiscovery, are knowledge work that can lead to conflict concerns. For example, if an eDiscovery staffer working on the defense-side of a litigation matter learns of a practice undertaken by the defendant, that same LPO staffer could highlight that practice for a plaintiff in subsequent litigation. This could prove to be an extremely complex problem for the large LPOs with institutional clients.

What will this mean for the LPO industry? I foresee (at least in the securities/document review arena) an increase in segmentation between plaintiff-side and defense-side LPO services. This may also lead to segregation by size, with larger LPOs gravitating to institutional clients and large-firm relationships, while smaller LPOs develop targeted expertise for plaintiff firms.

Another challenge that may face the industry is a focus on conflict-checking during the hiring process. Given the turnover at outsourcing companies in general and the difficulty in completely verifying records, it is possible that offshore attorneys will ultimately be typecast according to their "side" of the conflict - limiting employment mobility for offshore professionals.

On the other hand, and particularly on the defense side, I predict the development of long-term, institutional relationships between LPO providers and their clients. This increased stability will be good for the market and will help solidify LPO work as a valuable part of the outsourcing suite of services. Plaintiff-side companies will have a larger marketing challenge, no doubt, but also stand to develop reputations in specific types of litigation that could insulate them from market volatility.

Counterbalancing all of this value derived by recognizing that LPO work has some of the characteristics of legal "knowledge work" and needs appropriate ethical boundaries. This cannot help but be good for the LPO industry as it legitimizes what has historically been viewed as a niche practice. With broader acceptance and clear boundaries, LPO work will likely thrive over the next few years.