June/July 2010 / Features
Legal Process Outsourcing Can Save Time and Money
Legal process outsourcing is a growing trend with risks and benefits. It is best used for services that would be performed by paralegals, administrative support or junior level lawyers. Large law firms often bill out these individuals at rates in excess of $250 per hour. Such low risk services can often be performed by outsource providers on a flat fee basis or with a “not to exceed number of hours” stipulation. Turn-around time can often be improved as well. The services LPO providers can perform include document review, organization, management and preparation for discovery, basic legal research, patent and trademark clearance searches and basic contract review.
The most prevalent fear when outsourcing legal work is low-quality work, and possible serious negative consequences that outweigh the price advantage. This can be diminished by identifying the level of risk and outsourcing only low risk matters. Common problems include language or cultural barriers, lack of specific knowledge about the company and simple miscommunication.
Large law departments often outsource work to boutiques or small firms in small to mid-size markets. These firms may have the expertise without the overhead, so they can be profitable with lower rates or project fees, and they have the advantage of predictability, and common language and culture.
