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As the demand for competitive fees and access to advanced information technologies increased, so did the need for innovative solutions to deliver legal services.
Legal Process Outsourcing (LPO) is one of the fastest growing markets in the outsourcing industry. In addition, it is already common practice for law firms to outsource part of their legal processes. This is mainly due to the many benefits LPO provides legal practitioners. However, what exactly is LPO and how can law firms benefit from it?
What is LPO?
LPO is the transfer of both non-core and core legal tasks and activities to external vendors.Law firms and in-house legal departments outsource a wide range of legal support service, including high-volume and even complex tasks. For example, corporate forms and litigation document review, contract negotiation, intellectual property services and due diligence.
Law firms looking to increase productivity and offer legal services at a competitive price engage with an LPO partner. Qualified LPO partners can also help law firms implement process innovations—allowing legal practitioners deliver more efficient work.
In addition, having an LPO partner gives legal practitioners more time to focus on providing legal advice. Furthermore, law firms and in-house corporate legal departments outsource legal services to improve delivery—making their clients happier.
Legal Process Outsourcing (LPO) has a nearly 29% annual average growth rate, making it one of the fastest growing markets in the outsourcing industry.
How can law firms benefit from LPO
In Australia, LPO has been a thriving business model for over 10 years. Law firms are taking advantage of the many benefits LPO can provide, including:
Cost Savings
Outsourcing legal functions help law firms and businesses to save on costs. Moreover, offshore LPO providers offer more cost-effective support services across a wide range of areas of practice. Thus, LPO is a brilliant way for law firms to become more competitive.
Access to experienced talent
LPO also allows law firms and in-house corporate legal departments to access high-level paralegals and document specialists. Hence, law firms can fill the gaps in internal competencies and increase their capabilities, allowing for better client delivery.
Faster turnaround times
Partnering with an LPO service provider can help law firms expand their capacity. In addition, having an external team can reduce turnaround times for addressing legal matters. Moreover, LPO services can give law firms access to more experienced staff who can complete specific tasks faster.
Flexible staffing
Outsourcing legal support services allows law firms to tailor their capabilities. Law firms can easily upscale their teams to handle significant volumes of work in response to time-constrained regulatory inquiries. Likewise, they can down scale their teams on short notice after a matter or case has been completed. Hence, law firms can scale when necessary without the added overhead and administrative costs.
What are the disadvantages of LPO
Indeed, the many benefits LPO can provide legal practitioners prove to be quite advantageous. However, some law firms believe that LPO can create potential risks to the legal profession. Since outsourcing legal work is unique, legal practitioners are concerned about possible disadvantages of LPO, such as:
Ethical Issues
Outsourcing legal work requires legal thinking skills and knowledge of legal standards and best practices. It also involves in-depth understanding and knowledge of law systems and ethical rules that apply to lawyers.
Hence, LPO services providers must have qualified legal staff to oversee and perform the outsourced legal tasks. In addition, support staff must have sufficient legal training to ensure that they understand the requirements of a legal matter.
Confidentiality concerns
The level of confidentiality involved in legal processes is relatively high. Hence, the threat of leaking sensitive information is another reason for why legal practitioners are hesitant to outsource legal tasks.
LPO services providers must ensure that they can provide complete data security and privacy. This is not only to protect their clients, but also their clients’ clients.
Law firms and in-house corporate legal departments can save up to 70% of costs when they leverage legal process outsourcing (LPO).
Quality control
The fear of a decline in quality is not uncommon in outsourcing any type of service. Moreover, law firms believe that outsourcing to professionals who may not be qualified will lead to poor service quality.
In addition, legal work requires accuracy, great attention to detail and timing. Hence, it is important that qualified and trained professionals perform the legal tasks. LPO services providers must ensure that they do not compromise the quality of work.
Communication and cultural barriers
Good communication and understanding of expectations are vital to the successful resolution of any legal matter. Hence, LPO providers must maintain regular communication with their clients. This is to make sure that they fully realise their client’s goals and expectations.
Furthermore, LPO providers must also ensure that they understand their clients’ culture. This is for them to develop a sufficient level of awareness and sensitivity to their approach. Thus, enabling them to provide effective legal support in addressing the client’s legal challenges.
How can DBA help law firms benefit from LPO?
The DBA Legal Services Division provides paralegal and support services for a rage of legal areas of practice. Specifically, in the areas of property law and conveyancing, commercial law, estate planning, family law and even with litigation.
Our experience also allows us to provide support and assistance for legal matters across various jurisdictions. In addition, we approach each matter with utmost sensitivity and compassion. Thus, we can help you guide your clients in choosing the best legal option with the highest benefit.
Our in-house Australian legal practitioners oversee the legal processes and training of our paralegals and document specialists. Hence, we guarantee all documents and paperwork meet the Australian legal and legislative requirements. Moreover, our in-house lawyers ensure each staff has sufficient knowledge and understanding of the ethical requirements for each legal matter.
DBA is an innovative technology-driven organisation. We have invested in the latest technology and software to give the highest level of data security and privacy to our clients. Hence, we guarantee that all legal information is safe and secure from any form of breach or attack.
We are also PEXA certified. Our team has advanced technical skills in electronic exchanges and settlements of property transactions. Moreover, our deep understanding of innovations in technology allows us to provide end-to-end legal solutions to Australian legal practitioners.
Maann Sagun, MDC, DMP
Maann is a Communication Specialist and educator—masking as the Senior Content Writer of DBA. She is also a Digital Marketing Professional and specializes in SEO Audits. Maann has taken both her master’s degree in Development Communication, and bachelor’s degree in Mass Communication from the University of the Philippines.
Maann Sagun, MDC, DMP
Maann is a Communication Specialist and educator—masking as the Senior Content Writer of DBA. She is also a Digital Marketing Professional and specializes in SEO Audits. Maann has taken both her master’s degree in Development Communication, and bachelor’s degree in Mass Communication from the University of the Philippines.
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