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The Impact of Outsourcing Legal Work

CultureThe Impact of Outsourcing Legal Work
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Outsourcing Legal Work

In today’s global economy, the outsourcing of legal work has become commonplace. Law firms and corporations are relying more and more on outsourcing legal work to countries such as India, the Philippines, and South Africa. Outsourcing legal work involves sending work to individuals or companies that are outside of the legal profession in a different country. This has benefits for both the firms that outsource legal work and the countries that receive the work.

Benefits for Firms

One of the primary benefits for law firms that outsource legal work is cost savings. Outsourcing legal work can be significantly cheaper than doing it in-house or hiring local legal talent. This is particularly true for large law firms that have a high volume of legal work that can be outsourced. Outsourcing legal work can also help firms to reduce the amount of time spent on routine tasks such as document review, legal research, and drafting contracts. This allows attorneys to focus on more complex legal issues that require their expertise.

Benefits for Outsourcing Countries

The outsourcing of legal work to developing countries can help to stimulate economic growth and create more jobs in those countries. The countries that receive outsourcing work for legal professionals can improve their economies by increasing the demand for services and creating new jobs. Additionally, the transfer of legal knowledge and training can also help to build up the legal profession in those countries.

Statistics on Outsourcing Legal Work

According to a report by the National Law Journal, over 80% of U.S. law firms outsource legal work, and more than 50% are outsourcing to offshore providers. The use of outsourcing legal work to offshore providers has increased significantly over the past decade. In 2019, the global market for legal process outsourcing (LPO) was valued at $3.96 billion and is expected to grow to $6.5 billion by 2026.

The most common services outsourced in the legal industry include legal research (52%), document review (51%), contract drafting (45%), and intellectual property support (26%).

Examples of Outsourcing Legal Work

One example of outsourcing legal work is Thomson Reuters’ Legal Managed Services. The company provides a range of legal services, including document review, contract analysis, and legal research. The service is based in India and employs over 1,000 legal professionals.

Another example of outsourcing legal work is UnitedLex, a company that provides legal services to corporate legal departments and law firms. The company has more than 1,000 employees who provide services such as contract management, e-discovery, and litigation support. UnitedLex’s employees are based in various countries, including India, the Philippines, and South Africa.

In conclusion, the outsourcing of legal work is a growing trend in the legal industry. Law firms and corporations are turning to offshore providers for cost savings and to free up attorneys’ time to focus on complex legal issues. Outsourcing legal work can also have significant economic benefits for the countries that receive the work. While there are concerns about the quality of outsourced legal work and data security, many law firms and corporations continue to see the benefits of outsourcing legal work and are likely to continue doing so in the foreseeable future.

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