Recession and Legal Process Outsourcing
The meltdown of the economy world wide sent shocking signals to the head of states. The process of looking out for the causes of recession and measures to hold the recession began. The economists swung into action to dig the policies so as to find reasons for the recession. There have been allegations and counter allegations in ascertaining the reasons of recession. Similarly, the intellectuals started suggesting one after the other remedial measures.
The prominent result of the recession was crunch in the availability of funds with different organization and groups. This in turn, resulted into cutting of costs. Many giant companies also felt the heat. The social set up having abundance of job opportunities found themselves in dearth of the same. The government found itself trapped into a vicious circle. The sustainment of social system was the major issue to be formally dealt by the government. The capitalist government started becoming socialist. It started looking out for all those avenues whereby it could instill confidence amongst people and increase their buying power. Certain organizations required life support. The private organizations looked towards the state so as to help them survive these crises. The concept of outsourcing had born out of the formal business i.e. to increase the profit. Every organization looking for the optimization of the profit tries to reduce the cost and increase the receipts. The financial meltdown across the world gave a clear cut signal to the solicitor firms in USA and UK to cut down their costs so as to maintain their profitability while stressed to reduce the receipts.
Outsourcing was identified with BPOs but for last few years knowledge process outsourcing has found its place. The prominent amongst them being legal process outsourcing. The financial meltdown in economy in developed nations has added a growing chip in the economy of developing nations. It will not be an irony if it is taken as a balancing exercise. More solicitor firms of US and UK have been attracted to outsource their legal and paralegal works to their counterparts in developing countries like India, Philippines. The concept of legal process outsourcing has got a boom in its stage of infancy. The amplitude of growth in LPO industry well explains this. Apart from the financial angle the readily available legal eagle boosted the growth of LPO. Recession is inversely proportional to the growth of legal process outsourcing.
In view of decrease in spending power of people, the solicitors will look forward to provide same services at cheaper prices. This will in turn lead to passing off those services to LPOs. The legal process outsourcing is bound to grow by leaps and bounds. The magnetized attraction by LPOs has started attracting outsourcing of legal paralegal and back office support services. It really is a wonder that the industry is growing out of the meltdown of the financial economy of the world.