The global legal process outsourcing market is anticipated to witness significant growth owing to increasing number of corporate law departments and law firms adopting cost cuttings. Most legal work call for lots of documentation and paperwork from corporates. Such complex and time consuming tasks can affect the work efficiency and revenue. Hence, corporates are likely to outsource these legal activities through their representatives to reduce costing. Outsourcing back-end services can help these corporates in managing their internal operations efficiently and reducing operational costs.
Increasing number of legal firms and companies outsourcing their work to LPO’s can augment market growth. Growing need for law advisory firms that can offer process-oriented services using advanced digital technologies can impel market expansion. Advent of innovative digital technologies for easy and fast processing of legal documents can stimulate growth of the market. Increasing use of highly secure software tools and e-discovery to process data is expected to contribute significantly to market growth. In addition, supportive government initiatives to spread awareness among general counsels and public regarding benefits of LPO can drive the market in the coming years. Moreover, growing awareness regarding availability of virtual law assistants and law process automation can spur market growth in the coming years. Virtual law assistants can deliver services using built-in client portals. Such virtual law firms can manage mundane and complex work with professionalism similar to in-house employees.
Variation in regulatory policies on a regional level can restrict organizations from adopting outsource of legal services. Such restrictions among companies can hamper growth of market in the coming years. In addition, security and confidentiality concerns, coupled with ethical implications, can obstruct market growth. Strong initiatives by LOP firms to acquire non-disclosure agreements and certifications, and to build strong service level agreements (SLAs) can create lucrative opportunities for the market. In addition, growing concerns regarding data security and confidentiality among service providers can impel market growth.
The market can be segmented on the basis of services and location. Based on services, the market can be categorized into review and management, compliance assistance, litigation support, e-discovery, contract drafting, and patent support.
Asia Pacific is anticipated to witness significant growth in the coming years owing to easy availability of well-experienced lawyers. These lawyers have excellent communication skills and lower pay rates than their counterparts in the United States. High-level competency and experience of these lawyers can gain traction among clients and increase their business prospects, thereby boosting regional market growth in the coming years. In addition, increasing number of LPO players in developing countries, such as Singapore, Malaysia, and India, can stimulate market expansion in the region.
The market in North America is expected to expand in the coming years owing to rising demand for affordable yet efficient lawyers. Hiring local service providers can be quite expensive for corporates in the United States, which can impact their business. Hence, these corporates are likely to outsource their legal proceedings to countries where they can find efficient and affordable skilled personnel. Such business strategies can reduce expenses for corporates and allow them to focus on their core operations. For instance, ElevateNext announced its collaboration with Elevate to help companies cut their legal expenses.
Europe is predicted to bode well in the coming years due to rising demand for corporate legal advisors. Increasing number of mergers and acquisitions, and collaborations between multinational companies and large enterprises in various sectors can augment demand for lots of paperwork. Legal paperwork is anticipated to propel the demand for experienced and reliable advisors in the region, which can further stimulate regional market growth in the coming years. Local corporates are expected to prefer onshore service providers owing to data privacy issues. Most companies are adopting business strategies, such as mergers and acquisitions, to expand their business across the globe. For instance, CVC Capital Partners acquired the U.S. based LPO firm named UnitedLex, which offers services to leading corporations, universities, and law firms across the globe.
Some of the leading companies operating in the legal process outsourcing market are Cobra Legal Solutions, LLC, Infosys Limited, Mindcrest, Wipro Limited, and Evalueserve SEZ.
