Latest headlines

Is the rise of LPO now an inevitability?

This is the kind of processing nightmare that corporates have charged their in-house teams to deal with and as the Gazette article suggests, there are firms now that claim to have the infrastructure and wherewithall to manage it profitably at a fraction of the price.

“The challenge I lay down here is for all lawyers to introspect, and to ask themselves, with their hands on their hearts, what elements of their current workload could be undertaken differently — more quickly, cheaply, efficiently, or to a higher quality — using alternative methods of working.” 

And so said Richard Susskind; IT adviser to the Lord Chief Justice, in his infamous book ‘The end of Lawyers’ back in 2007.

If you believe today’s Law Society Gazette, the means of turning Susskind’s words into reality and delivering alternative processes is about to pervade the UK legal sector.

The story explains how two of the market’s three best known legal process outsourcing (LPO) providers have announced ‘aggressive’ plans to corner the market, with their mandates recieved largely from in-house legal teams at large corporate entities rather than private practice.

The article quotes Pangea3 co-chief executive David Perla who said his company plans to boost its 350 LPO staff, who include 280 fee-earners, to 500 staff in total by the end of 2010 – and that he expects that number to ‘grow further’ from 2011 onwards.

Speaking to one in-house counsel that I know at a top ten insurer, there seems to be an acceptance that LPO is a part of the industry’s future, particularly for businesses that are acquiring or have an international footprint and very high volumes of contracts held in numerous locations and formats.

This is the kind of processing nightmare that corporates have charged their in-house teams to deal with and as the Gazette article suggests, there are firms now that claim to have the infrastructure and wherewithall to manage it profitably at a fraction of the price.

About Ralph Savage (138 Articles)
Insurance and legal journalist Ralph Savage has written extensively for the financial and professional services sectors, most notably as News Editor of Post Magazine. He ghost writes regularly on behalf of FTSE 250 CEOs, leading counsel and senior professionals including solicitors, insurers, accountants and brokers.

1 Comment on Is the rise of LPO now an inevitability?

  1. I have learned a lot about outsourcing, to the point where I think it is a good thing. The statistics suggest it is likely that off-shore outsourcing leads to more jobs in the West, not fewer. http://bit.ly/c42NES On the legal process outsourcing front, I’ve seen with my own eyes how off-shore legal outsourcing, especially high-end, legal services KPO (knowledge process outsourcing), creates more legal work in the West, as deals previously undone, and litigations previously settled (or never filed), due to excessive legal costs, are suddenly affordable. Affordability means more work for the Western lawyers involved in supervision, editing, negotiating, and/or appearing in court.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: