Legal outsourcing to gain from financial downturn

The economic meltdown kicked off heated debates in US legal circles on exploring outsourcing options. With the fall of financial giants such as Lehman Brothers, Washington Mutual and Merrill Lynch in the US and the deepening of the banking crisis in Europe and other parts of the world, legal process outsourcing (LPO) firms in India have started gearing up their risk-assessment teams in anticipation of a surge in jobs related to scrutinizing US companies’ existing and prospective clients’ financial transactions and corporate governance standards.

Moreover, the meltdown seems to have taken the focus away from the recent notice by the United States Patent and Trademark Office (USPTO) which prohibits US-based companies from sending IP information overseas regarding patents and inventions, unless government clearance has been obtained.

Cost-competitive options

Companies have been forced to consider severe budgeting as a result of the economic recession in an attempt to reap the benefits of cost arbitrage. Offshore legal services in comparison to onshore legal services still remain financially attractive. Many companies in the US and in Europe are looking for high-quality legal services at lower costs from credible vendors as alternatives to using law firms onshore at exorbitant prices.

Amit Aswal is a patent engineer and leads the Patent Licensing and Infringement Unit at Clairvolex Knowledge Processes, a Delhi-based legal outsourcing firm.