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.
Showing posts with label UK Legal. Show all posts
Showing posts with label UK Legal. Show all posts
Friday, February 11, 2011
Wednesday, January 26, 2011
Radiant Law Illuminates the London Legal Scene
As a follow-up on my earlier post about new and innovative law firm models coming out of the UK, this past week I was able to catch up with Alex Hamilton, formerly of Latham & Watkins, now a founder and principal at Radiant.law.
Alex and a handful of colleagues from several leading law firms and in-house legal teams have banded together to launch a boutique called radiant.law that specialises in outsourcing, technology and commercial work.
The endeavor has created a reasonably large splash in the London legal scene due to the unique nature of the firm which is predicated on fixed pricing, senior-level staffing, and the expansive use of an offshore legal process outsourcing vendor to deliver much of the necessary legal support services.
Alex offered some behind-the-scenes insight into radiant.law as well as some interesting projections for the rapidly changing legal market in London. As far as Radiant’s view for its role in the market, Alex explained, “We’re not interested in changing the legal market, but believe the legal market will become more diverse. Clients simply need more choice for how they purchase their legal services. Throughout our work at our respective firms before coming to Radiant we always thought there had to be smarter ways of doing this."
At Fronterion, we’ve often speculated on whether law firms will end up acting more like LPOs or if LPOs will begin to embrace more law firm-like characteristics. In a strong shift towards the former, Alex outlined a number of strategies that Radiant picked up from their selected LPO provider, Pangea3. “For example, we’re adopting the Pangea3 approach of building playbooks for the more repeatable work. These play books outline the preferred and fall back positions on common issues that are used by Pangea3 staff. Using this more process-driven approach, alongside better checklists for all lawyers working on the matter, allow us to deliver a more consistent and better value product to clients,” Alex said.
On the decision to make LPO a prominent part of Radiant and the significance of LPOs’ unique approach to deliver high-quality work, Alex noted that, “What jumped out of me almost immediately when we started working with our LPO was the quality, structure and process, the entrepreneurial and innovative attitude and how they kept refining their processes.”
“At Radiant we’re all outsourcing lawyers so we know how the outsourcing market has evolved in other industry sectors. Essentially, firms who first went offshore for labor arbitrage are now going to India to get the expertise of process-driven service delivery. We’re really starting to see this in the legal process outsourcing sector. The rigor of the LPO’s approach is very important to delivering better quality products to clients.”
On the role that legal outsourcing will play in their day-to-day work at Radiant, Alex noted, “The primary role of the LPO for larger deals will be keeping all of the transactional documents in good shape – particularly overnight. This not only improves quality, but the deal velocity. We can also offer better value fixed price support for the smaller day-to-day contracts where we can use Pangea3 to do initial reviews and mark-ups under our supervision. Going forward, we’re going to keep looking for ways to increase how we work together with our legal outsourcing vendor.”
On client interfacing: “We take full responsibility for the work product at Radiant so we’re always checking everything. We are also the people who the client deals with and we will be in the negotiations.”
Critics are skeptical about the ability of the Radiant’s exclusively senior-level team to scale up their time to make the practice viable, particularly without the help of junior-level assistants. Certainly much of Radiant’s success is predicated on its ability to leverage lower-level tasks with their LPO provider. Alex noted, “We hope to remain nimble and very open to adjusting our model to what works, but for the time being, I really think that we’re on to something.”
One small step for a boutique technology firm, one giant step for what law firms may look like in the future.
Alex and a handful of colleagues from several leading law firms and in-house legal teams have banded together to launch a boutique called radiant.law that specialises in outsourcing, technology and commercial work.
The endeavor has created a reasonably large splash in the London legal scene due to the unique nature of the firm which is predicated on fixed pricing, senior-level staffing, and the expansive use of an offshore legal process outsourcing vendor to deliver much of the necessary legal support services.
Alex offered some behind-the-scenes insight into radiant.law as well as some interesting projections for the rapidly changing legal market in London. As far as Radiant’s view for its role in the market, Alex explained, “We’re not interested in changing the legal market, but believe the legal market will become more diverse. Clients simply need more choice for how they purchase their legal services. Throughout our work at our respective firms before coming to Radiant we always thought there had to be smarter ways of doing this."
At Fronterion, we’ve often speculated on whether law firms will end up acting more like LPOs or if LPOs will begin to embrace more law firm-like characteristics. In a strong shift towards the former, Alex outlined a number of strategies that Radiant picked up from their selected LPO provider, Pangea3. “For example, we’re adopting the Pangea3 approach of building playbooks for the more repeatable work. These play books outline the preferred and fall back positions on common issues that are used by Pangea3 staff. Using this more process-driven approach, alongside better checklists for all lawyers working on the matter, allow us to deliver a more consistent and better value product to clients,” Alex said.
On the decision to make LPO a prominent part of Radiant and the significance of LPOs’ unique approach to deliver high-quality work, Alex noted that, “What jumped out of me almost immediately when we started working with our LPO was the quality, structure and process, the entrepreneurial and innovative attitude and how they kept refining their processes.”
“At Radiant we’re all outsourcing lawyers so we know how the outsourcing market has evolved in other industry sectors. Essentially, firms who first went offshore for labor arbitrage are now going to India to get the expertise of process-driven service delivery. We’re really starting to see this in the legal process outsourcing sector. The rigor of the LPO’s approach is very important to delivering better quality products to clients.”
On the role that legal outsourcing will play in their day-to-day work at Radiant, Alex noted, “The primary role of the LPO for larger deals will be keeping all of the transactional documents in good shape – particularly overnight. This not only improves quality, but the deal velocity. We can also offer better value fixed price support for the smaller day-to-day contracts where we can use Pangea3 to do initial reviews and mark-ups under our supervision. Going forward, we’re going to keep looking for ways to increase how we work together with our legal outsourcing vendor.”
On client interfacing: “We take full responsibility for the work product at Radiant so we’re always checking everything. We are also the people who the client deals with and we will be in the negotiations.”
Critics are skeptical about the ability of the Radiant’s exclusively senior-level team to scale up their time to make the practice viable, particularly without the help of junior-level assistants. Certainly much of Radiant’s success is predicated on its ability to leverage lower-level tasks with their LPO provider. Alex noted, “We hope to remain nimble and very open to adjusting our model to what works, but for the time being, I really think that we’re on to something.”
One small step for a boutique technology firm, one giant step for what law firms may look like in the future.
Tuesday, January 11, 2011
Launch of Boutique Law Practice is Based on LPO Value Proposition
In a recent ABA podcast, I spoke on the melding of law firms and LPOs:
“Going forward I think it’s always a fair question of, are we going to see law firms acting like LPO’s or are we going to see LPO’s acting like law firms? And one of the trends… in the past 6 to 8 months is that we’ve seen a lot more law firms acting like LPO’s than LPO’s acting like law firms.” In this podcast, I predicted that we will also see some interesting melding between law firms and LPOs in the UK in the coming year with the implementation of Legal Services Act. My comments in the podcast start at 3:29 and 11:50.
In the New Year, we are already seeing signs of new LPO innovations and law firm/LPO melding. An example of such LPO innovation is the new technology, outsourcing and commercial law boutique launched by a group of partners from Barlow Lyde & Gilbert, Latham & Watkins and Morrison & Foerster. This new firm, known as Radiant.law, will work with legal outsourcer Pangea3 on certain transactions yet will be responsible for managing the deal as a whole, according to a report in Legal Week. Instead of charging clients an hourly rate, the firm aims to offer price certainty by charging fixed prices for work in advance.
This endeavor is big news. This new boutique is the first of its kind to offer a value-proposition centered around LPO. As an industry, we are still exploring the relationship dynamics between law firms, corporations, and LPOs and this is big first step for a law firm taking on this much LPO involvement.
We will see more new and innovative enterprises cropping up this year, particularly in the UK. We’ve also seen additional law firm-LPO melding with the recent onshore outsourcing announcement by Herbert Smith.
“Going forward I think it’s always a fair question of, are we going to see law firms acting like LPO’s or are we going to see LPO’s acting like law firms? And one of the trends… in the past 6 to 8 months is that we’ve seen a lot more law firms acting like LPO’s than LPO’s acting like law firms.” In this podcast, I predicted that we will also see some interesting melding between law firms and LPOs in the UK in the coming year with the implementation of Legal Services Act. My comments in the podcast start at 3:29 and 11:50.
In the New Year, we are already seeing signs of new LPO innovations and law firm/LPO melding. An example of such LPO innovation is the new technology, outsourcing and commercial law boutique launched by a group of partners from Barlow Lyde & Gilbert, Latham & Watkins and Morrison & Foerster. This new firm, known as Radiant.law, will work with legal outsourcer Pangea3 on certain transactions yet will be responsible for managing the deal as a whole, according to a report in Legal Week. Instead of charging clients an hourly rate, the firm aims to offer price certainty by charging fixed prices for work in advance.
This endeavor is big news. This new boutique is the first of its kind to offer a value-proposition centered around LPO. As an industry, we are still exploring the relationship dynamics between law firms, corporations, and LPOs and this is big first step for a law firm taking on this much LPO involvement.
We will see more new and innovative enterprises cropping up this year, particularly in the UK. We’ve also seen additional law firm-LPO melding with the recent onshore outsourcing announcement by Herbert Smith.
Wednesday, December 15, 2010
Top 10 for 2011 – Annual Trending Release
Today we’re releasing our annual trending report on the legal outsourcing industry - Ten for 2011: Top 10 Trends in Legal Outsourcing in 2011.
The report was featured by the ABA Journal - Legal Outsourcing Consultant Predicts More Onshoring - which highlighted both the onshore developments as well as greater transparency by major US firms.
Today's Fronterion Forefront newsletter features our assessment on our predictions from last year. To sign up for the newsletter email: forefront@fronterion.com
Ten for 2011 Release Details
Fronterion, the leading international consulting firm for outsourced legal services, today has released its second annual report outlining the prospects for the legal process outsourcing (LPO) industry in the coming year.
Following a breakthrough year for LPO in 2010, the Fronterion Ten for 2011: Top 10 Trends in Legal Outsourcing for 2011 reveals the most important trends in legal outsourcing for the next 12 months.
A significant prediction for 2011 is a rise in the use of onshore LPO providers, those who deliver services from low-cost domestic locations in the United States and Europe. Attracted by significant savings in such locations, combined with the benefits of servicing clients within the same time zone, law firms and LPO vendors will continue to invest in onshore services alongside traditional overseas options.
Next year also looks to be the year that local regulators and trade bodies definitively respond to the way outsourcing is changing legal services across the globe. There are significant ethical and regulatory issues attached to legal outsourcing. For example, how do firms demonstrate adequate supervision when work is performed by an LPO vendor? Who is liable for the work done by LPO lawyers? And, how much should law firms charge their clients for work done by LPO providers on their behalf?
The American Bar Association is currently consulting with its professional members concerning changes to its draft rules, while the United Kingdom’s Solicitor’s Regulation Authority is considering a major of review of LPO in response to the growing number of firms sending legal work to outside providers.
Another key trend is greater transparency. The first major US firm will go public with its LPO arrangements next year, something those in the US legal industry have been unwilling to do until now. The increasing application of technology, which allows LPO providers and law firms to work together more closely, will be another growing trend in 2011.
More consolidation is likely, following the example of Thomson Reuters who acquired Pangea3 last month in the largest deal ever seen in the legal outsourcing market.
Using its unrivalled access to LPO firms and their clients, Fronterion again set out its predictions for 2011. Fronterion managing principal Michael Bell said: “This year, we’ve seen many of our 2010 predictions unfold in the industry. For example, we projected LPO would become an increasingly valid career path for young lawyers. Both in low-cost jurisdictions and in parts of the US and Europe, LPO firms have been ramping up their operations to meet increased demand, and at a time when traditional law firms jobs have been harder to find.”
“We see 2011 as a pivotal year for legal outsourcing as it continues to develop from a niche practice to a truly global industry.”
Fronterion’s Top 10 for 2011 are:
1) A Fundamentally Changing Legal Profession. Continued downward pressure on costs and the globalisation of legal services provide a perfect environment for LPO. Those who refuse to engage with LPO will increasingly become a minority - the industry can no longer be ignored.
2) Enterprise Approach. Many firms already outsource legal work at partner or department levels. However, LPO is more effective and efficient when a firm implements a firm-wide or ‘enterprise’ approach, led by senior management.
3) Onshore Expansion. The growth in onshore and hybrid on-offshore delivery solutions will begin in earnest in 2011. This trend will be equally prevalent in the United States and United Kingdom, with LPO providers and firms already building capacity.
4) Expanding Client Geographic/Jurisdictional Reach. Demand for LPO services will spread to new markets. In the US, law firms in Texas, the Midwest and the Pacific Northwest are potential growth markets for LPO. In the UK, regions outside of London are also emerging growth markets. However, continental Europe will remain a challenging environment for LPO.
5) Progressive Value Proposition. LPO providers will have to offer more services and a more progressive value proposition to remain competitive. Alongside traditional litigation support, LPO vendors may also have to offer contract portfolio servicing, compliance, diligence, human resources, medical and broader legal support functions.
6) Increasing Technology Applications. As a result of the growing importance of technology, LPO vendors will use technology as a key selling point. Technology platforms will be used to offer diversified services and as a means for vendors to further embed themselves in client organizations.
7) Dynamic Vendor Landscape. The unprecedented growth and industry consolidation initiated in the fourth quarter of 2010 will continue to shape the dynamic LPO vendor landscape in the coming year. Overall, these consolidation trends are positive for the industry as vendors emerge stronger, more capitalized and, most likely, considerably larger.
8) Public Acknowledgement. The growing acceptance and adoption of onshore and offshore LPO will become more visible in the coming year. This will become increasing prevalent in the US, where in past five to six years, corporations and law firms have remained virtually silent on all LPO related matters.
9) Divergent Vendor Approach. Competition means that LPO vendors will have to differentiate themselves from each other in terms of services offered and delivery models. No dominant model exists (yet) and a range of different approaches will emerge next year.
10) Ethical Guidance. Regulatory bodies start to address the changing legal landscape. In the US, ethical commentary is expected from the ABA’s Commission on Ethics 2020. In the UK, announcements are expected from the SRA and the Law Society. Other jurisdictions that have been silent so far may follow suit, such as Australia, Canada, and South Africa.
For the full Fronterion Top 10 for 2011 report visit www.fronterion.com/tenfor2011/
The report was featured by the ABA Journal - Legal Outsourcing Consultant Predicts More Onshoring - which highlighted both the onshore developments as well as greater transparency by major US firms.
Today's Fronterion Forefront newsletter features our assessment on our predictions from last year. To sign up for the newsletter email: forefront@fronterion.com
Ten for 2011 Release Details
Fronterion, the leading international consulting firm for outsourced legal services, today has released its second annual report outlining the prospects for the legal process outsourcing (LPO) industry in the coming year.
Following a breakthrough year for LPO in 2010, the Fronterion Ten for 2011: Top 10 Trends in Legal Outsourcing for 2011 reveals the most important trends in legal outsourcing for the next 12 months.
A significant prediction for 2011 is a rise in the use of onshore LPO providers, those who deliver services from low-cost domestic locations in the United States and Europe. Attracted by significant savings in such locations, combined with the benefits of servicing clients within the same time zone, law firms and LPO vendors will continue to invest in onshore services alongside traditional overseas options.
Next year also looks to be the year that local regulators and trade bodies definitively respond to the way outsourcing is changing legal services across the globe. There are significant ethical and regulatory issues attached to legal outsourcing. For example, how do firms demonstrate adequate supervision when work is performed by an LPO vendor? Who is liable for the work done by LPO lawyers? And, how much should law firms charge their clients for work done by LPO providers on their behalf?
The American Bar Association is currently consulting with its professional members concerning changes to its draft rules, while the United Kingdom’s Solicitor’s Regulation Authority is considering a major of review of LPO in response to the growing number of firms sending legal work to outside providers.
Another key trend is greater transparency. The first major US firm will go public with its LPO arrangements next year, something those in the US legal industry have been unwilling to do until now. The increasing application of technology, which allows LPO providers and law firms to work together more closely, will be another growing trend in 2011.
More consolidation is likely, following the example of Thomson Reuters who acquired Pangea3 last month in the largest deal ever seen in the legal outsourcing market.
Using its unrivalled access to LPO firms and their clients, Fronterion again set out its predictions for 2011. Fronterion managing principal Michael Bell said: “This year, we’ve seen many of our 2010 predictions unfold in the industry. For example, we projected LPO would become an increasingly valid career path for young lawyers. Both in low-cost jurisdictions and in parts of the US and Europe, LPO firms have been ramping up their operations to meet increased demand, and at a time when traditional law firms jobs have been harder to find.”
“We see 2011 as a pivotal year for legal outsourcing as it continues to develop from a niche practice to a truly global industry.”
Fronterion’s Top 10 for 2011 are:
1) A Fundamentally Changing Legal Profession. Continued downward pressure on costs and the globalisation of legal services provide a perfect environment for LPO. Those who refuse to engage with LPO will increasingly become a minority - the industry can no longer be ignored.
2) Enterprise Approach. Many firms already outsource legal work at partner or department levels. However, LPO is more effective and efficient when a firm implements a firm-wide or ‘enterprise’ approach, led by senior management.
3) Onshore Expansion. The growth in onshore and hybrid on-offshore delivery solutions will begin in earnest in 2011. This trend will be equally prevalent in the United States and United Kingdom, with LPO providers and firms already building capacity.
4) Expanding Client Geographic/Jurisdictional Reach. Demand for LPO services will spread to new markets. In the US, law firms in Texas, the Midwest and the Pacific Northwest are potential growth markets for LPO. In the UK, regions outside of London are also emerging growth markets. However, continental Europe will remain a challenging environment for LPO.
5) Progressive Value Proposition. LPO providers will have to offer more services and a more progressive value proposition to remain competitive. Alongside traditional litigation support, LPO vendors may also have to offer contract portfolio servicing, compliance, diligence, human resources, medical and broader legal support functions.
6) Increasing Technology Applications. As a result of the growing importance of technology, LPO vendors will use technology as a key selling point. Technology platforms will be used to offer diversified services and as a means for vendors to further embed themselves in client organizations.
7) Dynamic Vendor Landscape. The unprecedented growth and industry consolidation initiated in the fourth quarter of 2010 will continue to shape the dynamic LPO vendor landscape in the coming year. Overall, these consolidation trends are positive for the industry as vendors emerge stronger, more capitalized and, most likely, considerably larger.
8) Public Acknowledgement. The growing acceptance and adoption of onshore and offshore LPO will become more visible in the coming year. This will become increasing prevalent in the US, where in past five to six years, corporations and law firms have remained virtually silent on all LPO related matters.
9) Divergent Vendor Approach. Competition means that LPO vendors will have to differentiate themselves from each other in terms of services offered and delivery models. No dominant model exists (yet) and a range of different approaches will emerge next year.
10) Ethical Guidance. Regulatory bodies start to address the changing legal landscape. In the US, ethical commentary is expected from the ABA’s Commission on Ethics 2020. In the UK, announcements are expected from the SRA and the Law Society. Other jurisdictions that have been silent so far may follow suit, such as Australia, Canada, and South Africa.
For the full Fronterion Top 10 for 2011 report visit www.fronterion.com/tenfor2011/
Friday, September 17, 2010
Work It Out: Tri-party Line
Conversations between general counsel and their law firm counsel regarding LPO are increasingly important. These discussions should include when and if to utilize an outside LPO vendor. That topic is the central theme of my recent article in Berwin Leighton Paisner’s “Work It Out” journal.
The article is entitled, Tri-party Line: The integration of outside vendors into the delivery of legal and support services is one of the most significant developments affecting the legal profession...
The piece highlights issues that in-house legal teams should address and pitfalls to avoid when working within the tri-party relationship. As noted in the article, “The two primary challenges are managing the tri-party relationship – between in- house team, the law firm and the legal outsourcing vendor – and ensuring ethical compliance and adherence to professional standards by all parties.”
Attorneys in law firms and in-house counsels need to anticipate and prepare for these types of relationships which will be increasing in number in the future at LPO becomes a more common practice.
The article is entitled, Tri-party Line: The integration of outside vendors into the delivery of legal and support services is one of the most significant developments affecting the legal profession...
The piece highlights issues that in-house legal teams should address and pitfalls to avoid when working within the tri-party relationship. As noted in the article, “The two primary challenges are managing the tri-party relationship – between in- house team, the law firm and the legal outsourcing vendor – and ensuring ethical compliance and adherence to professional standards by all parties.”
Attorneys in law firms and in-house counsels need to anticipate and prepare for these types of relationships which will be increasing in number in the future at LPO becomes a more common practice.
Tuesday, September 7, 2010
Imminent Ethics?
As the regulatory focus on the ethics of LPO heats up in the US and UK, a growing body of knowledge about LPO ethics is emerging.
Most recently, an article featured in the UK-focused publication Outsource, Mark Ross of Integreon provides a summary of ethical guidance on legal outsourcing currently available and a glimpse of what we may expect in the future.
In the article Ross said, “I expect there will be more to report on the ethics of legal outsourcing over the coming months from both sides of the Atlantic as the relevant bodies continue to study this rapidly growing industry. Whether in the form of amendments to the model rules of professional conduct (in the U.S.), or to the Solicitor’s Code of Conduct (UK), lawyers will welcome more detailed guidance. Watch this space!”
I will be speaking on LPO ethics this week at an event hosted by The Law Society. More on that shortly.
Most recently, an article featured in the UK-focused publication Outsource, Mark Ross of Integreon provides a summary of ethical guidance on legal outsourcing currently available and a glimpse of what we may expect in the future.
In the article Ross said, “I expect there will be more to report on the ethics of legal outsourcing over the coming months from both sides of the Atlantic as the relevant bodies continue to study this rapidly growing industry. Whether in the form of amendments to the model rules of professional conduct (in the U.S.), or to the Solicitor’s Code of Conduct (UK), lawyers will welcome more detailed guidance. Watch this space!”
I will be speaking on LPO ethics this week at an event hosted by The Law Society. More on that shortly.
Thursday, July 8, 2010
SRA Public Announcement
The Solicitors Regulation Authority (SRA) has released their first public statement on the application of outsourced legal services for solicitors practicing in England and Wales.
As originally reported by our LPO Ethics Resource Center (www.LPOethics.com), the SRA release states, “Where law firms are outsourcing some of their legal or administrative work to other law firms or non law firms, the SRA's guidance is that this is allowed on the basis that all relevant rules are complied with (Solicitors’ Code of Conduct 2007) and that the arrangement is made transparent and is agreed with the client.”
The statement continues with the SRA citing existing ethical guidelines deeming them applicable to outsourced legal services.
In conclusion, the SRA notes, “In accepting work from a client, the firm must always consider whether the work should be outsourced at all as they should have the necessary resources and competency to undertake the task. In summary a firm must act in the best interests of their client and comply with their core duties.”
It’s been reported the Law Society is currently exploring these issues, but has yet to formally comment on the topic of LPO.
The recent announcement to UK solicitors by the SRA stands in contrast to lawyers in US jurisdictions who have been able to rely on ethical guidance provided as early as 2006 in some jurisdictions. The most notable guidance in the United States is Opinion 08-451 issued by the American Bar Association Standing Committee on Ethics and Professional Responsibility in 2008.
Additional details on the complete SRA legal outsourcing statement are available on our recently launched LPO Ethics Resource Center (www.LPOethics.com).
The LPO Ethics Resource Center is a free resource that allows legal professionals to keep abreast on up-to-date information on the ethical policies and opinions relevant to outsourced legal services. This site compiles all of the latest information and breaking news regarding legal process outsourcing into one convenient resource.
As originally reported by our LPO Ethics Resource Center (www.LPOethics.com), the SRA release states, “Where law firms are outsourcing some of their legal or administrative work to other law firms or non law firms, the SRA's guidance is that this is allowed on the basis that all relevant rules are complied with (Solicitors’ Code of Conduct 2007) and that the arrangement is made transparent and is agreed with the client.”
The statement continues with the SRA citing existing ethical guidelines deeming them applicable to outsourced legal services.
In conclusion, the SRA notes, “In accepting work from a client, the firm must always consider whether the work should be outsourced at all as they should have the necessary resources and competency to undertake the task. In summary a firm must act in the best interests of their client and comply with their core duties.”
It’s been reported the Law Society is currently exploring these issues, but has yet to formally comment on the topic of LPO.
The recent announcement to UK solicitors by the SRA stands in contrast to lawyers in US jurisdictions who have been able to rely on ethical guidance provided as early as 2006 in some jurisdictions. The most notable guidance in the United States is Opinion 08-451 issued by the American Bar Association Standing Committee on Ethics and Professional Responsibility in 2008.
Additional details on the complete SRA legal outsourcing statement are available on our recently launched LPO Ethics Resource Center (www.LPOethics.com).
The LPO Ethics Resource Center is a free resource that allows legal professionals to keep abreast on up-to-date information on the ethical policies and opinions relevant to outsourced legal services. This site compiles all of the latest information and breaking news regarding legal process outsourcing into one convenient resource.
Wednesday, July 7, 2010
Fronterion Announcements: Study findings and LPOethics.com launch
We are proud to announce two very exciting developments at Fronterion this week.
The first is the 2010 Global Sourcing Study: AM Law 50, which polled 30 of the top 50 US law firms concerning their positions on legal outsourcing. The findings were reported on in today's ABA Journal, Are Top US Law Firms Outsourcing Some Legal Work? 83% Won’t Say.
Complete findings and analyses are available in the 2010 Global Sourcing Study: AM Law 50 report. Contact GlobalSourcing@fronterion.com for additional details. The press release - WALL OF SILENCE SURROUNDS NASCENT LEGAL OUTSOURCING INDUSTRY – highlights the findings from the study. As reported in the press release, “while many US law firms are using outsourcing providers for the first time, few are willing to admit it in public, leading to a culture of secrecy around an increasingly important development within the legal services industry.”
Our second announcement is the launch of the LPO Ethics Resource Center at www.LPOethics.com. As reported on the website, “The LPO Ethics Resource Center is a free resource that allows legal professionals to keep abreast with up-to-date information on the ethical policies and opinions relevant to outsourced legal services. This site compiles all of the latest information and breaking news regarding legal process outsourcing into one convenient resource.”
The resource is targeted for legal professionals in both the US and the UK.
We are very excited about making Resource Center available due to the expected number of developments in legal outsourcing ethics in the forthcoming 12 months.
More details on both announcements will be provided later this week.
The first is the 2010 Global Sourcing Study: AM Law 50, which polled 30 of the top 50 US law firms concerning their positions on legal outsourcing. The findings were reported on in today's ABA Journal, Are Top US Law Firms Outsourcing Some Legal Work? 83% Won’t Say.
Complete findings and analyses are available in the 2010 Global Sourcing Study: AM Law 50 report. Contact GlobalSourcing@fronterion.com for additional details. The press release - WALL OF SILENCE SURROUNDS NASCENT LEGAL OUTSOURCING INDUSTRY – highlights the findings from the study. As reported in the press release, “while many US law firms are using outsourcing providers for the first time, few are willing to admit it in public, leading to a culture of secrecy around an increasingly important development within the legal services industry.”
Our second announcement is the launch of the LPO Ethics Resource Center at www.LPOethics.com. As reported on the website, “The LPO Ethics Resource Center is a free resource that allows legal professionals to keep abreast with up-to-date information on the ethical policies and opinions relevant to outsourced legal services. This site compiles all of the latest information and breaking news regarding legal process outsourcing into one convenient resource.”
The resource is targeted for legal professionals in both the US and the UK.
We are very excited about making Resource Center available due to the expected number of developments in legal outsourcing ethics in the forthcoming 12 months.
More details on both announcements will be provided later this week.
Tuesday, July 6, 2010
C5 Conference Wrap-up
While a bit thinly attended in comparison to previous events in London, the C5 Legal Process Outsourcing conference was certainly a success in terms of discussion and speaker caliber.
One high point was the discussion on captive delivery centers led by three very knowledgeable men who are involved in the field of outsourcing. These included Evangelos Apostolou (BT Vice President and Chief Counsel APAC who established and managed the BT legal outsourcing captive in Delhi – including the recent transfer to UnitedLex), Mark Ford (director of the Clifford Chance Knowledge Centre), and Paul Rawlinson (Global Chair of Baker & McKenzie’s IP Practice who oversees Baker & McKenzie’s global delivery of IP services).
A key theme arising from the discussions was the perspective that LPO is one of a suite of cost saving measures available to general counsel. Of the conferences that I have attended, the C5 conference provided the most insight into the in-house legal teams’ outsourcing perspective (both to LPO’s and their outside counsel). Prominent general counsel speaking at the event included Richard Reade of ISS, Richard Tapp of Carillion, David Symonds of Tyco, Stephan Regius of Borealis AG, Pavel Klimov of Unisys, and previously mentioned Apostolou of BT.
The smaller event size allowed for some highly interactive and insightful discussions on issues ranging from pricing, oversight responsibilities, day-to-day challenges of managing global service delivery and ethical issues surrounding outsourced legal services.
My thanks go out to all of the speakers at the event for sharing their insights, to C5 for the privilege of chairing the conference proceedings, and to all participated who made the event a fruitful one.
One high point was the discussion on captive delivery centers led by three very knowledgeable men who are involved in the field of outsourcing. These included Evangelos Apostolou (BT Vice President and Chief Counsel APAC who established and managed the BT legal outsourcing captive in Delhi – including the recent transfer to UnitedLex), Mark Ford (director of the Clifford Chance Knowledge Centre), and Paul Rawlinson (Global Chair of Baker & McKenzie’s IP Practice who oversees Baker & McKenzie’s global delivery of IP services).
A key theme arising from the discussions was the perspective that LPO is one of a suite of cost saving measures available to general counsel. Of the conferences that I have attended, the C5 conference provided the most insight into the in-house legal teams’ outsourcing perspective (both to LPO’s and their outside counsel). Prominent general counsel speaking at the event included Richard Reade of ISS, Richard Tapp of Carillion, David Symonds of Tyco, Stephan Regius of Borealis AG, Pavel Klimov of Unisys, and previously mentioned Apostolou of BT.
The smaller event size allowed for some highly interactive and insightful discussions on issues ranging from pricing, oversight responsibilities, day-to-day challenges of managing global service delivery and ethical issues surrounding outsourced legal services.
My thanks go out to all of the speakers at the event for sharing their insights, to C5 for the privilege of chairing the conference proceedings, and to all participated who made the event a fruitful one.
Monday, June 28, 2010
LPO Conference: London
This week the London-based event organizer C5 is hosting one of the few, if not only, two-day events on legal outsourcing. The conference – C5 Legal Process Outsourcing – is to be held in London at the St. James Sofitel Hotel.
In addition to presenting on legal outsourcing oversight and the outlook for legal outsourcing ethics, I am also invited to chair the two-day conference. Of that, I am quite honored (or rather “honoured” per the jurisdictional locale of the event).
The conference agenda includes quite an assembly of prominent and familiar faces in the field of legal outsourcing including:
Mark Ross, Integreon
Richard Reade, ISS
Neil Mirchandani, Hogan Lovells
Mark Ford, Clifford Chance
Nigel Kissack, Pinsent Masons
Peter Brudenall, Hunton & Williams
Professor Mari Sako, University of Oxford
Vince Neicho, Allen & Overy
Richard Tapp, Carillion
And a number of others…
More details on the proceedings will be posted later this week.
In addition to presenting on legal outsourcing oversight and the outlook for legal outsourcing ethics, I am also invited to chair the two-day conference. Of that, I am quite honored (or rather “honoured” per the jurisdictional locale of the event).
The conference agenda includes quite an assembly of prominent and familiar faces in the field of legal outsourcing including:
Mark Ross, Integreon
Richard Reade, ISS
Neil Mirchandani, Hogan Lovells
Mark Ford, Clifford Chance
Nigel Kissack, Pinsent Masons
Peter Brudenall, Hunton & Williams
Professor Mari Sako, University of Oxford
Vince Neicho, Allen & Overy
Richard Tapp, Carillion
And a number of others…
More details on the proceedings will be posted later this week.
Thursday, June 24, 2010
Law Society Exploration
Recently, The Lawyer broke the story highlighting the first public reporting of the Law Society’s activity to address the changing legal profession, with a specific aim on outsourced legal services.
As reported, the Law Society expert panel appears to mirror a similar initiative launched by the ABA named the “ABA Commission on Ethics 20/20”.
More details on the LPO ethical developments in the UK as reported by The Lawyer are available here.
As reported, the Law Society expert panel appears to mirror a similar initiative launched by the ABA named the “ABA Commission on Ethics 20/20”.
More details on the LPO ethical developments in the UK as reported by The Lawyer are available here.
Tuesday, June 15, 2010
Growth of Onshore Legal In-Sourcing? You Decide.
The announcement by Taylor Wessing to establish a commoditized service delivery center in Cambridge reflects similar recent onshoring moves by American firms Orrick and WilmerHale, as well as Bristol-based Osborne Clarke.
The unique aspect of the announcement, making it the first of its kind in contrast to its American counter-parts, is that Taylor Wessing is actively marketing these services to clients.
Does this mark the start of the growth of onshore legal insouricng?
Should LPO’s be concerned if law firms become more efficient on their own?
The unique aspect of the announcement, making it the first of its kind in contrast to its American counter-parts, is that Taylor Wessing is actively marketing these services to clients.
Does this mark the start of the growth of onshore legal insouricng?
Should LPO’s be concerned if law firms become more efficient on their own?
Tuesday, June 8, 2010
Help Wanted
Another sign of expanding career opportunities for legal professions is exemplified by Pinsent Masons’ decision to create a new enterprise outsourcing role as they expand their outsourcing presence.
As noted in the 2010 Global Sourcing Study and the Fronterion 2010 trending report, the roles of legal professionals and opportunities are expanding considerably as a result of increased integration of outside vendors, both domestically and abroad.
More on the article is available through The Lawyer.
As noted in the 2010 Global Sourcing Study and the Fronterion 2010 trending report, the roles of legal professionals and opportunities are expanding considerably as a result of increased integration of outside vendors, both domestically and abroad.
More on the article is available through The Lawyer.
Monday, May 31, 2010
Leveraging Outside Vendors
Featured in the Spring 2010 International In-house Counsel Journal is an article titled “Leveraging Outside Vendors in a Changing Legal Landscape” authored by Richard Reade, UK General Council of ISS and me. The ten page article covers many key topics regarding the current state of the LPO industry. It’s a good read for those just getting familiar with the LPO industry or those who are already involved and need to gather more information.
The article covers these topics:
• Setting the stage (background information)
• Cost pressures
• Risk management
• Outsourcing profiles
• A structured approach to LPO
• Sourcing opportunities
• Offshoring opportunities and challenges
• ISS UK sourcing innovations
• Tips and best practices
It was my pleasure to work with Richard Reade on this article. He has been involved in legal outsourcing since early 2008 when he established an innovative outsourcing solution with a team based in India and London. Richard is also a frequent speaker on the topic and nominee for in-house legal innovation awards.
The article will be published in it’s entirety in the June addition of the International In-house Counsel Journal.
The article covers these topics:
• Setting the stage (background information)
• Cost pressures
• Risk management
• Outsourcing profiles
• A structured approach to LPO
• Sourcing opportunities
• Offshoring opportunities and challenges
• ISS UK sourcing innovations
• Tips and best practices
It was my pleasure to work with Richard Reade on this article. He has been involved in legal outsourcing since early 2008 when he established an innovative outsourcing solution with a team based in India and London. Richard is also a frequent speaker on the topic and nominee for in-house legal innovation awards.
The article will be published in it’s entirety in the June addition of the International In-house Counsel Journal.
Thursday, May 27, 2010
Legal Futures: A Shore Thing
I had the pleasure of contributing a piece for Legal Futures website. The site focuses on the leading news and trends impacting the UK legal landscape.
My piece, A Shore Thing, comments on the impact of the onshore legal outsourcing trend and how it will potentially impact the roles of legal professionals both within and outside of the traditional legal model.
The ascent of the onshore legal outsourcing industry may change the shape and structure of traditional law firms from High Street to major City firms. The onshore component also raises questions regarding the relationship dynamics between general counsel, their respective law firm(s) and outsourcing vendors.
I also noted the changing roles of legal professionals: The 2010 Global Sourcing Study also revealed that legal outsourcing has changed the roles and dynamics of domestic lawyers and legal professionals. General counsel and lawyers who remain within the traditional legal structure of law firms and corporations will increasingly find themselves acting as aggregators, aggregating and integrating legal matters delivered from sources within and outside of their organisations. Services sourced outside of the organisation can be delivered both on and offshore. This shift to the aggregation of legal services is a sharp departure from the traditional legal services model in which attorneys offer bespoke legal advice within a discrete function area.
The recent deal announcements by WilmerHale and CMS Cameron McKenna exhibit prime examples of how these trends are being integrated in landmark deals and the legal landscape.
More information is available on the Legal Futures website.
My piece, A Shore Thing, comments on the impact of the onshore legal outsourcing trend and how it will potentially impact the roles of legal professionals both within and outside of the traditional legal model.
The ascent of the onshore legal outsourcing industry may change the shape and structure of traditional law firms from High Street to major City firms. The onshore component also raises questions regarding the relationship dynamics between general counsel, their respective law firm(s) and outsourcing vendors.
I also noted the changing roles of legal professionals: The 2010 Global Sourcing Study also revealed that legal outsourcing has changed the roles and dynamics of domestic lawyers and legal professionals. General counsel and lawyers who remain within the traditional legal structure of law firms and corporations will increasingly find themselves acting as aggregators, aggregating and integrating legal matters delivered from sources within and outside of their organisations. Services sourced outside of the organisation can be delivered both on and offshore. This shift to the aggregation of legal services is a sharp departure from the traditional legal services model in which attorneys offer bespoke legal advice within a discrete function area.
The recent deal announcements by WilmerHale and CMS Cameron McKenna exhibit prime examples of how these trends are being integrated in landmark deals and the legal landscape.
More information is available on the Legal Futures website.
Tuesday, May 25, 2010
More on Minter
The Lawyer also reported additional details on the Minter Ellison outsourcing offering. It’s been announced Lewis Silken is a prominent client.
The interesting aspect to note is the high-level nature of the services performed – including the reported hands-on approach by Minter’s senior litigation partners. Perhaps it may be better to classify this as a “delegation,” such as the delegation to a regional firm opposed to a proper LPO engagement. Law firm delegation is very common for major City firms and popularized by the Lovells “Mexican Wave” approach.
LPOs work, act and perform services in a fundamentally different way than traditional law firms and thus legal outsourcing vendors create a unique value proposition.
The interesting aspect to note is the high-level nature of the services performed – including the reported hands-on approach by Minter’s senior litigation partners. Perhaps it may be better to classify this as a “delegation,” such as the delegation to a regional firm opposed to a proper LPO engagement. Law firm delegation is very common for major City firms and popularized by the Lovells “Mexican Wave” approach.
LPOs work, act and perform services in a fundamentally different way than traditional law firms and thus legal outsourcing vendors create a unique value proposition.
CMS Camerons: Act II
The Lawyer reported additional details on the CMS Cameron McKenna outsourcing arrangement with Integreon. The piece reported on some of the internal issues that are arising with such a massive outsourcing initiative that will potentially touch all aspects of Cameron’s support functions.
The article highlights the importance of change management, which is a critical component of a successful legal outsourcing engagement. While most LPO deals do not constitute such a monolithic decision and to date all LPO deals have been supporting legal professionals and rather than transferring law firm staff to an LPO vendor, proper change management functions are a must.
Key issues include engaging an appropriate number of stakeholders both within and outside of the organization as well as designating a champion role in the initiative. We do applaud Camerons, and more specifically Tony Wright, for positioning himself as a senior, respected figure within the firm to champion the engagement.
We will continue to watch this deal with interest as it goes forward through the due diligence phase. The ability to discern core from the non-core and strategic from the non-strategic issues is at the heart of every outsourcing engagement. As noted in the article, Osborne Clarke found certain functions to be better retained internally. More details are available in my book Implementing a Successful Legal Outsourcing Engagement where Osborne Clarke is featured as a case study. The core vs. non-core decisions will be unique for every organization and, undoubtedly, Camerons will come to their own conclusions.
One thing is certain, you can’t outsource change management and you can’t outsource effective governance.
The article highlights the importance of change management, which is a critical component of a successful legal outsourcing engagement. While most LPO deals do not constitute such a monolithic decision and to date all LPO deals have been supporting legal professionals and rather than transferring law firm staff to an LPO vendor, proper change management functions are a must.
Key issues include engaging an appropriate number of stakeholders both within and outside of the organization as well as designating a champion role in the initiative. We do applaud Camerons, and more specifically Tony Wright, for positioning himself as a senior, respected figure within the firm to champion the engagement.
We will continue to watch this deal with interest as it goes forward through the due diligence phase. The ability to discern core from the non-core and strategic from the non-strategic issues is at the heart of every outsourcing engagement. As noted in the article, Osborne Clarke found certain functions to be better retained internally. More details are available in my book Implementing a Successful Legal Outsourcing Engagement where Osborne Clarke is featured as a case study. The core vs. non-core decisions will be unique for every organization and, undoubtedly, Camerons will come to their own conclusions.
One thing is certain, you can’t outsource change management and you can’t outsource effective governance.
Monday, May 17, 2010
Minter Ellison's Kiwi Offering
Another significant LPO story broken by The Lawyer this week is the front-page coverage of the new offering of outsourced legal services by the Australian Minter Ellison from their New Zealand offices.
It will be interesting to follow this announcement and the uptake by UK law firms. According to people familiar with the matter, Minter has several prominent UK law firms signed up for their services.
I was also quoted in the piece about the advantages and disadvantages of law firms offering LPO services.
Michael Bell, managing principal at outsourcing consultancy Fronterion, said the firm might experience issues around the “scaleability of resources”, adding: “The unique thing about LPO specialists is that they’re process-based. Private practice has the advantage that it understands how firms work and can recruit better talent.”
More details are available at The Lawyer.
It will be interesting to follow this announcement and the uptake by UK law firms. According to people familiar with the matter, Minter has several prominent UK law firms signed up for their services.
I was also quoted in the piece about the advantages and disadvantages of law firms offering LPO services.
Michael Bell, managing principal at outsourcing consultancy Fronterion, said the firm might experience issues around the “scaleability of resources”, adding: “The unique thing about LPO specialists is that they’re process-based. Private practice has the advantage that it understands how firms work and can recruit better talent.”
More details are available at The Lawyer.
CMS Camerons News Round-up
This past Friday, The Lawyer broke the story of the largest outsourcing deal for legal support services to date with UK 20 firm CMS Camerons. While the Camerons deal is more focused on the legal support services than traditional LPO services, the deal is significant for two reasons.
The first notable aspect is the sheer size and duration of the arrangement. The details reported by The Lawyer state the contract size to be £600 million for the duration of 10 years. The scope of the outsourcing arrangement includes nearly all legal support services for the firm including “IT, HR, finance, business development, communications, knowledge management, facilities management and administration services.” It’s also reported that close to 200 current Camerons personnel will be transferred to Integreon. While Osborne Clarke made headlines with a similar deal with Integreon in early 2009, the Camerons deal is a “whole other kettle of fish” according to persons knowledgeable of the matter.
The second significant aspect of the Camerons deal is that it illustrates that when an onshore arrangement helps to clarify the outsourcing decision. When orgaizations remove the offshore component (including ethical and jurisdictional issues), firms are able to see more clearly what they are proficient in performing and what, in fact, is better performed by a third-party. Once these determinations are made, the on/offshore component is simply another step in the solution development process.
For more details on the release please see the following news round-up:
The Lawyer
LegalWeek
Bar & Bench
The first notable aspect is the sheer size and duration of the arrangement. The details reported by The Lawyer state the contract size to be £600 million for the duration of 10 years. The scope of the outsourcing arrangement includes nearly all legal support services for the firm including “IT, HR, finance, business development, communications, knowledge management, facilities management and administration services.” It’s also reported that close to 200 current Camerons personnel will be transferred to Integreon. While Osborne Clarke made headlines with a similar deal with Integreon in early 2009, the Camerons deal is a “whole other kettle of fish” according to persons knowledgeable of the matter.
The second significant aspect of the Camerons deal is that it illustrates that when an onshore arrangement helps to clarify the outsourcing decision. When orgaizations remove the offshore component (including ethical and jurisdictional issues), firms are able to see more clearly what they are proficient in performing and what, in fact, is better performed by a third-party. Once these determinations are made, the on/offshore component is simply another step in the solution development process.
For more details on the release please see the following news round-up:
The Lawyer
LegalWeek
Bar & Bench
Thursday, May 13, 2010
Recession sends onshoring up the agenda
Fronterion was also noted recently by Managing Partner magazine regarding the implications of our 2010 Global Sourcing Study. The article highlights a number of issues including the alternative career path available to UK lawyers at onshore legal outsourcing centers as well as the piqued interest in UK firms for onshore and on/offshore hybrid legal outsourcing engagements.
I was also quoted in the piece regarding the average savings differential between on and offshore legal outsourcing solutions. Here is the quote from the article:
Fronterion managing principal Michael Bell said that onshoring could reduce legal spend by up to a fifth (21 per cent) per outsourced head, compared to an average of 50 per cent in destinations such as India. However, onshoring as an alternative could effectively sidestep “many of the problems associated with sending legal week overseas”, including different regulations and negotiating time zones, he explained.
I was also quoted in the piece regarding the average savings differential between on and offshore legal outsourcing solutions. Here is the quote from the article:
Fronterion managing principal Michael Bell said that onshoring could reduce legal spend by up to a fifth (21 per cent) per outsourced head, compared to an average of 50 per cent in destinations such as India. However, onshoring as an alternative could effectively sidestep “many of the problems associated with sending legal week overseas”, including different regulations and negotiating time zones, he explained.
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