Friday, May 13, 2011

New Legal Week Survey Finds 15% of UK Firms Use LPO

Legal Week recently published No Rush LPO Despite cost pressures (Legal Week, May 5, 2011), a thorough look at the UK legal process outsourcing (LPO) market, including in-depth analysis , numerous graphics, and a summary of the main conclusions. It is based on a survey of 575 lawyers by Incisive Media Integreon co-sponsored research. We present some highlights and comments here.


LPO is a security penetration and growing. The survey found that the penetration of LPO in law firms dependent on other recent reports. For example, in a June 2009 blog, reported on surveys that found only 5% of the companies had used LPO. Now, Legal Week found 15% of law firms in the UK using LPO services. Moreover, more than half of respondents - both users and nonusers LPO - believe that the use of law firm services LPO will grow over the next year. Given another trend of the survey identified - increasing cost pressure - it is reasonable to conclude that the penetration of LPO continue to grow.

In the law department side, 6% report LPO. We believe this reflects a lower penetration of customer preferences that the law of companies associated with LPOS. The results support this view: both companies and departments to "give more votes to a solution where the firm oversees the contract. Among the law firms, the voting here represents nearly 52 percent of respondents. In the area of ​​the facility, about 29 percent support for this approach. "

Suitable for LPO spans several work practices. The study provides insight into the most suitable areas for LPO work. Highly regarded among lawyers inside and outside of litigation will review the document, e-discovery (e-disclosure), and contract management. significant minority also believe enforcement, library and research and knowledge transfer as the recovery of debt, and are suitable for LPO.

Using LPO is not a risk to law firm brands. Some law firms seem to worry that the use of a LPO customers could send the "wrong" signal. The survey shows this fear is unfounded. A large majority, about 75% of both facilities and lawyers believe that the company uses a LPO "does not diminish the brand. "The article also notes that some of the largest law firms and best-known UK LPO and use notes," If the leading firms are using LPO, LPO is difficult to see as a sign of weakness. "This is consistent with our point of view, summarized by my colleague Matthew Banks in the article, saying:

"Instead of a decrease in its brand, the law firms that embrace LPO gain a competitive advantage. What we call 'LPO 2.0 involves close collaboration between business and law LPO provider. The LPO provider solutions are so closely integrated with the proposition of the company an overall value are simply seen as part of the suite of solutions the company provides to its customers. mark the company is greater. "

The real problem is the lowest cost, LPO. We have recently suggested that the question is "whether or not to outsource" and no, but rather "what is the best way to centralize non-core support functions in a low cost?" (See Legal Outsourcing - A conversation Change by Mark Ross and Ron Friedmann. Outsource Magazine, November 17, 2010) Legal Week comes to a similar conclusion:

"Outsourcing is generally seen as the transfer of repetitive work to India. But LPOS can take many different forms ... LPOS are being developed by many companies in the UK. Some are doing the forms of the same by outsourcing routine work of their offices in the city (where wages and other costs are higher) to regional offices where they can offer lower rates charged. Other companies - especially big-name international companies - we work with regional law firms to outsource those processes that can provide extra value. "


We believe that the results confirm our view that lawyers have become comfortable with LPO and market pressures continue to favor the adoption of LPO. We understand, however, that not everyone shares this view. For those who remain skeptical about the LPO, the article does a good job presents contrasting opinions.
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