Legal process outsourcing is a buzz word that sets conversations roaring in corporate circles. Corporations all around the world have realized the value that outsourcing legal functions can bring to them.
Lawyer
Clairvolex Knowledge Processes Pvt Ltd
Pioneers like GE and Motorola have set up captive centres in India as leads for others to follow.
Others like Microsoft have successfully implemented the third party service provider approach and added value to their operations.
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What is it that compels these organizations to consider outsourcing their legal operations to an offshore destination?
Multiple reasons
The reasons primarily centre around the huge cost advantage, the 24-hour nature of many outsourcers and the ability to focus on core areas.
The legal outsourcing market, which was valued at US$146 million in 2006, is expected to grow to US$640 million by 2010 according to recent research by the National Association of Software & Service Companies (NASSCOM).
The number of professionals employed in the industry is also expected to grow by up to 32,000 by the year 2010, a significant jump from 7,500 last year.
Vendor selection and appropriate implementation of the process is a critical aspect of offshoring.
Making the right choice
There are many considerations that come into play when selecting an offshore vendor. Five in particular are worth highlighting.
The first is confidentiality and the security of information.
Legal processes essentially involve the sharing of confidential information with an outside party.
The offshore vendor needs to ensure adequate security and confidentiality of the information shared.
A check on the confidentiality measures adopted by a vendor requires study and analysis of the IT infrastructure, physical security systems and other processes of the vendor organization.
Clients may create an obligation of confidentiality on the service provider under the retainership agreement.
Quality control
The second consideration is quality control. Many corporations and firms have tried the offshore model and have been disappointed with the quality of the work.
While offshoring work, it is important to remember that the work done by any service provider needs to be strictly supervised and quality checked in the early days of a relationship.
Gradually, as the Indian personnel understand the client specific nuances, the iterations will be minimum and the quality of work will be likely to reach the standards expected by the outsourcer.
Nonetheless a client should carefully review the internal processes adopted by the vendor for review and quality control and ensure that domain experts check the quality of work before it is dispatched to the client.
Conflict of interest
A third consideration is attrition and potential conflicts of interest. The employees working with the offshore service provider may change jobs and expose the client to a conflict of interest situation.
Before offshoring their work, the client should try to understand the human resources policies of the vendor in terms of recruitment, training, employee retention and handling such conflicts if they arise.
Continuity
Fourth is the need for business continuity management. With the boom in the legal outsourcing industry, many enterprises offering all kinds of offshore legal services are springing up across the country.
While selecting an appropriate vendor, the client needs to make sure of the background, fundamentals, strength and continuity of the organization to whom the work is being sent.
Location
A final consideration is location. The location of the offshore vendor becomes important in terms of the infrastructural facilities including high speed internet connections, adequate bandwidth, power supply, political stability, etc.
Case-by-case evaluation
The above steps are only guidelines but they may help a potential client in evaluating multiple vendors and making a more informed decision when the time comes to choose the right supplier of outsourcing services.
The end result depends on a number of factors that need to be seen and evaluated on a case-by-case basis.
Nonetheless being aware and cautious always helps.
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Savi Gupta is a lawyer with Clairvolex Knowledge Processes Pvt Ltd.
3rd Floor, NDIIT Building
Kalkaji
New Delhi – 110 001, India
Tel: +91 11 2371 6565
Fax: +91 11 2371 6556
Email: mail@clairvolex.com
www.clairvolex.com
