The big news in the outsourcing industry as of late is a deal between Rio Tinto and CPA Global. While it is a big win for CPA, the most exciting aspect of the engagement is the stance of Rio’s outside counsel.
According to Legalweek, Rio Tinto’s managing attorney Leah Cooper said, “Of course, I’d have much preferred if a law firm had come to me and said, ‘Hey, we’ve just entered into an arrangement with a low cost provider that’s going to save you money,’ but that didn’t happen.”
It was also interesting to note that Rio planned to use the CPA team to support not supplant their existing legal team.
“Any good business makes sure its legal team is aligned with the company’s overall needs, but we will not cut legal jobs as a result of outsourcing. The team in India is there to support, not to replace,” said Cooper.
Corporations are now finding new ways to reduce costs - at times going around their traditional legal counsel. It will be interesting to revisit this engagement after it has had some time to mature.
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