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1. What is Legal Process Outsourcing?
Legal Process Outsourcing refers to the service industry wherein legal and paralegal support services of the Client firm or an individual is performed by the outsourcing party. Cost, resource and speed advantage are the levers responsible for the mushrooming of this phenomenon across the world. The common law system, huge pool of English educated attorneys, time zone advantage, quality, confidentiality and security are the factors supporting the growth of legal process outsourcing industry. There are three eminent aspects of an LPO transaction:-
The client – from where we get the outsourced work. In other words, who is the source of work.
The provider/vendor – who processes the work i.e. the organization that provides the LPO services.
The project – the work which needs to be executed.
The services provided by the LPO industry ranges from preparation of pleadings, drafting of contracts, litigation support, legal transaction, IPR, proof readings, research and due diligence. The growth and development of the legal offshoring industry in India will help bringing a change in the way legal services are delivered in the west. This will also help in improving the economies of different countries.
2. What are the benefits of outsourcing legal work?
LPO industry is mounting because of mutual benefits of clients and service providers. The increasing prominence of the LPO industry in the world today, is owing to the benefits listed below:-
Cost effectiveness:- Outsourcing legal work to India results to a cost saving of 60-70% which facilitates an organization to gain efficiency and staying profitable in the competitive world of business. Offshoring legal work is very cost effective for law firms/corporate in the UK and US.
Time zone:- The time difference and the availability of 24x7 support staff encourage outsourcing of legal work even more. By outsourcing research and paralegal tasks, the in-house counsel are able to concentrate on core legal issues. As law firm attorneys or in-house counsel in the West close their offices, their assigned work is attended to and completed in India due to the time zone advantage.
Language:- English being the language for education and business in India is an advantage. There can never be a communication gap as Indian lawyers are well versed in English and all courts in India function in English.
Eminence:- The Indians are known for their intelligence and intellect. The same may be applied to Indian legal brains. Indian legal professionals have brilliant proficiency in working with the tools and systems in the outsourcing industry. Their writing skills and legal knowledge enhancement has resulted in making them an important pillar of the outsourcing operations.
Confidentiality:- The most important factor in outsourcing legal services is the privacy of information of solicitors. The data outsourced by a solicitor firm to an LPO is always privileged information. This information has to be protected so as to maintain the confidentiality of the client. At all levels, confidentiality is being maintained.
Variety of services:- An LPO provides variety of services to its clients. Solicitors and Law firms not only cut their costs but also get various services from one service provider. Solicitors/Law firms can broaden their areas of working by relying on the back office support of LPO.
Resources: By outsourcing, the foreign law firm or the corporation frees its resources to concentrate on its core competencies thus increasing the client base and court appearances vis-a–vis the competitors
Though this list above is not mutually exhaustive but is indicative of the main triggers of the industry.
3. What is the future of the legal process outsourcing industry?
The LPO industry in India has invested significantly in systems and process to ensure data security-often to a greater degree than their overseas clients.
The legal process outsourcing has been growing at a geometric progression growth rate. has been in geometrical progression. It has reached only to the level of 3% to 5% of the total estimated market. According to one of the latest surveys, it has been predicted that about 35,000 US lawyer jobs will move to low cost countries by 2010. At present, there are more than 15,000 professionals employed in various LPOs across India and it is growing.
The LPOs which started with 4-10 professionals a year back have grown to the strength of 400. The service industry like BPO had multiplied significantly and similarly LPO industry is also passing through the same phase. The future of LPO can be visualized with the glance on the following facts:
"79,000 US lawyer jobs to be outsourced by 2015. (Source Forrester incorporation).
"LPO service providers in India likely to generate revenue of US dollar 300 million in 2010-2011. (Source Evalueserve)."
"LPO service providers in India likely to generate revenue of US dollar 960 million 2015-2016 (Source Evalueserve)."
"A US based technology and Market Research Company indicates the current value of legal outsourcing is $80m (£40m) [about 3% of the estimated market] (Source Forrester incorporation)."
"A US based technology and Market Research Company indicates the current value of legal outsourcing is $60 m more than (£30 m) in India alone (Source Forrester incorporation)."
"The total legal outsourcing market will be worth up to $4bn (£2bn) by 2015. (Source Forrester incorporation)."
4. I outsourced before but the experience was unpleasant. What difference would it make outsourcing to Draft n Craft?
You do not leave driving simply because you met with an accident, you simply become more cautious. The advantages of outsourcing are enormous. Draft n Craft has a team of immense Indian legal talent that will surely change your perception and prior outsourcing experience.
5. Why should I choose Draft n Craft as my LPO vendor?
There has to be commitment to certain factors which play vital role in functioning of an LPO. These include human and non human factors.
HUMAN FACTORS
The recruitment of staff is the most vital thing of an organization. We take all care and caution while selecting them and only well-qualified staff are employed. They are given general and client specific training before being placed on the job. Most of the working in an LPO becomes monotonous. So, we sincerely look into different factors responsible to keep staff motivated and attentive in their work. We try to provide the same staff to our clients, so that there is continuity and better and confidential services are provided to them.
NON-HUMAN FACTORS
The working of an LPO requires excellent computers, software and other programs, tools, 100% power back up and at Draft n Craft we have all these facilities. We have the facility of receiving data from our clients on our server with thin clients and have latest systems to maintain confidentiality in respect of the data and the working.
Being a growing legal process outsourcing company, we provide various types of legal support and services viz. litigation support including pleadings and deposition summary, legal research, contract drafting, intellectual property rights, document and contract review, legal transcription, document coding/indexing, paralegal services like data entry and maintenance of account books and due diligence.
6. How do I know my data is secure and confidential at Draft n Craft?
Utmost importance is given to the “attorney-client” relationships. In an LPO, security of the work outsourced is critical. Confidentiality by us is maintained at two levels. At the human level, it includes signing of non – disclosure agreements, which is of three types, one which is signed between the company and the client, second one which is between the employee and the company and third type between the employee and the client. The breach of the non-disclosure agreement by an employee could lead to his/her termination and prosecution if required.
The second level of confidentiality is that of the technology used. Hack proof servers together with best quality firewalls, secure ISP’s are used to protect data and systems from internet vulnerabilities. Apart from this electronic access control is used along with security guards to secure the premises and restrict any unauthorized entry.
HOW DO WE ENSURE HIGH CONFIDENTIALITY?
We ensure absolute confidentiality by:-
► Electronic Access Control at our work centre
► Secured employee passwords
► Non-Disclosure Agreement with employees
► Software and Hardware security
► Prevention of data pilferage
► Data locking in server
► Client password facility to access their work progress
► Client’s document and communication confidentiality
► Maintain confidentiality of your attorney – client privileges
► High End confidentiality arrangements like VPN, working on Client Server
► Dedicated Client infrastructure arrangements
► Camera and security guards available 24 x 7
7. Is it ethical to outsource legal work? Is Draft n Craft engaged in the unauthorized practice of law?
Till date there have been 4 Bar opinions. All of them are in favour of outsourcing;
the San Diego opinion is the most elaborate which states that so long as the outsourcing companies deliverables are supervised by licensed US attorney it is not unethical to outsource. Draft n Craft is not a Law Firm. No employee, Director, Agent or Officer of Draft n Craft provides legal advice in any domestic or foreign jurisdictions. Draft n Craft is not engaged in unauthorized practice of law in any jurisdiction. Draft n Craft legal services are performed exclusively at the request of qualified attorneys to assist them in representing their Clients.
8. Will my malpractice insurance cover Draft n Craft deliverables?
Draft n Craft services are no different than those provided by other vendors. Though we believe that malpractice insurance should not be an issue, we remind you that we are not in the position to give you insurance. Draft n Craft does not provide legal advice to any client in any offshore location; Draft n Craft attorneys are retained by offshore attorneys to assist them and are thus a delegate or associate thereof. Generally your malpractice insurance may cover Draft n Craft associate. Please consult with experts in insurance to determine the answers that may be relevant to your specific situation.
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