Impact of Recession on LPO business
The human psychology always guides one to allure towards bigger things before being attracted to smaller ones. Everybody tries to be instantaneous in unfurling the answers to the questions confronted. If a person is placed in a position to save different currency notes from fire, he would naturally try to save bigger currency notes before hand.
The recession has acted like a compelling force to make people save in these prime times. People have tried hard to curtail their expenses. The status of solicitors in UK and USA have always remained unblemished and at a dignified position. Their status has always been alluring and attractive because of the confidentiality and quality of services rendered by them. Many business houses started outsourcing their work but the area of outsourcing in solicitors firms remained aloof. The reason of it being so was simple. One may outsource the physical working but none may outsource the ideas, thoughts, intellect and other tactics involved in the profession of the solicitors.
The business of LPO began with the outsourcing of back office support work which primarily consisted of secretarial work. It was further noticed entering into the second category of outsourcing i.e. in respect of paralegal work. It involved working of lawyers to provide good legal research, document review, document drafting etc. It required lawyers who were trained and conversant with the working on the tools. They have been providing a junior lawyer support to the solicitors in UK and USA.
Clients of solicitors based in UK and USA in order to reduce their expenses sought their services being outsourced to some service providers. In turn, the solicitor firms started outsourcing their work to providers in countries like India. This pace of outsourcing got a major push due to recession. The evil of recession has compelled solicitor firms to cut down their cost so as to provide same services at more competitive prices. Significantly, the focus of outsourcing is now tilting towards the legal services in place of secretarial and paralegal services. Legal Process Outsourcing has attained another dimension with the increase in outsourcing of legal work. The reasons for the beginning of outsourcing may be different but the reason of outsourcing the legal services like contract drafting, document review, deposition summary are the outshoot of recession. Recession has proved to be a reason for outsourcing for bigger services from the office of solicitors. There is no doubt that the LPOs have been benefited by the extraordinary growth of software and tools. The availability of software and competent personnel in countries like India has attracted the outsourcing to greater extent. It can be easily visualized that most of the big solicitor firms will have their extended branch offices in India.