This month, representatives and LPO enthusiasts gathers for IQPC’s inaugural LPO conference in New York City at the Sentry Club. The speaking faculty included representatives from top AM Law firms and multi-nationals such as Microsoft, Pfizer, Nokia, Milbank Tweed, Hinshaw Culbertson, and Mayer Brown, among others.
I had the privilege of chairing the event which included three days of workshops, speakers and interactive sessions.
Highlights from the event included hearing about personal experiences, presentations of case studies and lively discussions by the sophisticated delegation of conference attendees.
Key takeaways from the conference included:
* The importance of taking an active role as the buyer, including the selection, supervision, and management of an outside vendor.
* Shifting work to an outside LPO vendor does not absolve the firm from responsibility for the work and work product.
* Firms are seeking to address similar issues, but are using differing approaches to LPO. Variations includes onshore vs. offshore delivery, captive vs. third-party vendors, the range of outsourced service areas and divergent management approaches.
* Onshore LPO delivery was a reoccurring theme.
We see this conference emerging as a cornerstone event for the industry. Stay tuned for any details on upcoming events.
For more information on this year’s Legal Outsourcing Summit event click here.
Thursday, February 24, 2011
Friday, February 11, 2011
A&O Transfers Support Roles to Belfast
Allen & Overy (A&O) announced last week that it is transferring 180 support roles to Belfast, Ireland. A&O will initially transfer 18 members of support staff to Belfast to deliver IT, HR, finance, business services and library functions from a single site, The Lawyer reports, and the legal services center will take on some routine legal work. As many as 250 support roles could be based in the city by 2014, with total headcount including fee-earners potentially reaching 300.
The implications of A&O’s onshoring initiative are still being sorted out, particularly in light of Herbert Smith’s announcement of a Belfast-based captive center last year. Due to the growing interest in onshore legal outsourcing, we are planning to feature this topic in our newsletter this month. Be sure to sign up for our newsletter by e-mailing forefront@fronterion.com.
The implications of A&O’s onshoring initiative are still being sorted out, particularly in light of Herbert Smith’s announcement of a Belfast-based captive center last year. Due to the growing interest in onshore legal outsourcing, we are planning to feature this topic in our newsletter this month. Be sure to sign up for our newsletter by e-mailing forefront@fronterion.com.
Wednesday, February 9, 2011
Thomson Reuters-Pangea3 Deal Raises Competitive Pressure
There’s no doubt that legal process outsourcing is changing the delivery of legal services. Thomson Reuter’s acquisition of Pangea3 last November has further fueled the LPO discussion and sparked debate among industry experts about the ethical implications of Thomson delving into competition with its client base, especially since Pangea3 plans to open more offices in the U.S.
In a recent article in the ABA Journal, several industry commentators, including myself, point out that the Thompson-Pangea3 deal has raised the competitive pressure for law firms both large and small. Innovative law firms will adjust their market approach and leverage LPO as a cost-effective way to accomplish repetitive and process-based work.
The full ramifications of Thompson Reuters backing an LPO will become clearer throughout the year. However, as clients grow more reluctant to pay top fees for commoditized, repeatable work, law firms must evaluate whether forming LPO partnerships will help them deliver services more efficiently.
In a recent article in the ABA Journal, several industry commentators, including myself, point out that the Thompson-Pangea3 deal has raised the competitive pressure for law firms both large and small. Innovative law firms will adjust their market approach and leverage LPO as a cost-effective way to accomplish repetitive and process-based work.
The full ramifications of Thompson Reuters backing an LPO will become clearer throughout the year. However, as clients grow more reluctant to pay top fees for commoditized, repeatable work, law firms must evaluate whether forming LPO partnerships will help them deliver services more efficiently.
Monday, February 7, 2011
Stay on Top of LPO Regulation in 2011
After flying under the radar for several years, legal process outsourcing (LPO) has finally caught the attention of regulators around the globe. In the three main LPO markets – the United States, the United Kingdom and India – there is the potential for rule changes which could place outsourcing agreements under increased scrutiny or even have a material impact on the ability of law firms and companies to send legal work to external providers.
For example, Connecticut has introduced a bill designed to prevent law firms and corporations from offshoring the drafting, reviewing and analyzing of legal documents to workers overseas. Under the bill, proposed by Connecticut state representative Patricia Dillon, "unlicensed'' offshore workers who engage in these activities for clients in Connecticut could be charged with unauthorized practice of law. If the bill is passed, there is the risk that other US states may pass similar laws.
Fronterion’s January newsletter focuses on the changing regulatory landscape for legal outsourcing in 2011. To keep up to date on the changing ethical and regulatory environment in the coming year, sign up for our newsletter by emailing forefront@fronterion.com, visit the LPO Ethics Resource Center, and review our most recent press release.
Also, to learn more about legal outsourcing strategies, be sure to register for this new LPO conference scheduled for February 14-16, 2011 at The Sentry Center in New York, NY.
For example, Connecticut has introduced a bill designed to prevent law firms and corporations from offshoring the drafting, reviewing and analyzing of legal documents to workers overseas. Under the bill, proposed by Connecticut state representative Patricia Dillon, "unlicensed'' offshore workers who engage in these activities for clients in Connecticut could be charged with unauthorized practice of law. If the bill is passed, there is the risk that other US states may pass similar laws.
Fronterion’s January newsletter focuses on the changing regulatory landscape for legal outsourcing in 2011. To keep up to date on the changing ethical and regulatory environment in the coming year, sign up for our newsletter by emailing forefront@fronterion.com, visit the LPO Ethics Resource Center, and review our most recent press release.
Also, to learn more about legal outsourcing strategies, be sure to register for this new LPO conference scheduled for February 14-16, 2011 at The Sentry Center in New York, NY.
Monday, January 31, 2011
LPO Predictions for the New... Decade
While many commentators make projections for the coming year (Fronterion included), some are taking a more expansive approach and are forecasting into the next decade.
In a recent post at Law Without Borders, fellow LPO blogger Russell Smith projects a number of ways that legal offshoring will impact (or “shake up”) the legal profession in the next 10 years. His 12 predictions, and my summary of each, are:
1. Meritocracy Beats Aristocracy - Legal service delivery is becoming more value-driven.
2. Change is Happening in the East as Much as in the West - The legal landscape is changing in India.
3. The New Tort Reform - LPO may constitute a more cost-effective defense than settlement.
4. Capital Funding of Litigation - LPO is a good value proposition for third-party investors in litigation funding.
5. The Billable Hour Bites the Dust - Alternative billing models are turning the legal world upside down.
6. Unintended Effects of Regulatory Reform - New regulatory compliance obligations call for LPO solutions.
7. "Legal Trauma Units" Level the Playing Field – Offshoring levels the playing field for small law firms.
8. Offshore Beats Nearshore – Billing rates and operating costs are considerably lower in India.
9. The Death of the "They're Taking our Jobs" Myth – Offshoring actually creates new jobs in the West.
10. More Proliferation Than Consolidation – Offshore legal service providers are growing in number.
11. Western Lawyers Switch to Football – Through LPO, Western lawyers can move up the value chain to act as quarterbacks or team coaches.
12. The Future May Belong to the "Just Crazy Enough" – LPO entrepreneurs pave the way for new innovations.
View "12 Ways Offshore Legal Outsourcing Could Shake Up the Law World in the New Decade" for the full report.
We largely agree with Smith’s predictions, a number of which are already occurring the marketplace. Just think, 10 years ago we were just sorting out the use and ethical implications of e-mail.
In regard to Smith’s 9th prediction, “The Death of the ‘They’re Taking Our Jobs Myth,’” I was quoted with my comments on the job impact of international sourcing initiatives:
Smith makes some insightful forecasts regarding LPO in the next decade. I agree with his statement that this coming decade is one in which the legal world might be turned upside down and that “offshore legal outsourcing is likely to continue to be among the leaders of the law revolution.”
In a recent post at Law Without Borders, fellow LPO blogger Russell Smith projects a number of ways that legal offshoring will impact (or “shake up”) the legal profession in the next 10 years. His 12 predictions, and my summary of each, are:
1. Meritocracy Beats Aristocracy - Legal service delivery is becoming more value-driven.
2. Change is Happening in the East as Much as in the West - The legal landscape is changing in India.
3. The New Tort Reform - LPO may constitute a more cost-effective defense than settlement.
4. Capital Funding of Litigation - LPO is a good value proposition for third-party investors in litigation funding.
5. The Billable Hour Bites the Dust - Alternative billing models are turning the legal world upside down.
6. Unintended Effects of Regulatory Reform - New regulatory compliance obligations call for LPO solutions.
7. "Legal Trauma Units" Level the Playing Field – Offshoring levels the playing field for small law firms.
8. Offshore Beats Nearshore – Billing rates and operating costs are considerably lower in India.
9. The Death of the "They're Taking our Jobs" Myth – Offshoring actually creates new jobs in the West.
10. More Proliferation Than Consolidation – Offshore legal service providers are growing in number.
11. Western Lawyers Switch to Football – Through LPO, Western lawyers can move up the value chain to act as quarterbacks or team coaches.
12. The Future May Belong to the "Just Crazy Enough" – LPO entrepreneurs pave the way for new innovations.
View "12 Ways Offshore Legal Outsourcing Could Shake Up the Law World in the New Decade" for the full report.
We largely agree with Smith’s predictions, a number of which are already occurring the marketplace. Just think, 10 years ago we were just sorting out the use and ethical implications of e-mail.
In regard to Smith’s 9th prediction, “The Death of the ‘They’re Taking Our Jobs Myth,’” I was quoted with my comments on the job impact of international sourcing initiatives:
Are the projected 5000 new jobs in the LPO industry directly correlated to a 5000 job “shift” (read lost, redundant, right-sized, etc.) at top US law firms? Is it economically sound reasoning to assume that economic interactions are tit-for-tat? In short, no.
Does the increase of LPO mean that there may be marginally less demand for legal support staff for certain low-value service areas? Perhaps. Alternatively, doesn’t allowing firms to offer new services so clients can economically litigate and conduct transactions also increase the demand for the services of law firms, and thus the demand for lawyers? Absolutely.
Smith makes some insightful forecasts regarding LPO in the next decade. I agree with his statement that this coming decade is one in which the legal world might be turned upside down and that “offshore legal outsourcing is likely to continue to be among the leaders of the law revolution.”
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