PANGEA3 LLC

It seems the bad economy is good news for the legal process outsourcing (LPO) industry. ValueNotes, which publishes independent research on the industry, came out in June with “Outsourcing in the Changing Marketplace,” an article listing a deluge of factors that have contributed to the LPO industry’s fast assent in recent years.

ValueNotes cites “the downward pressure on costs, growing litigation, increasing compliance measures and the increasing use of technology” as the four crucial reasons companies are turning to LPO providers for legal services, and they are dead on with their analysis. As the economy improves, these forces remain prominent; both corporations and law firms continue to scramble to cut costs in order to post profits and remain competitive. LPOs allow lawyers to both lower costs and reallocate their time to high value work.

At the same time that corporations and law firms would like to use LPOs more, LPO providers are improving their technology, growing more experienced and becoming even more capable of quickly producing front office legal work. As a result, contracts with legal process outsourcing providers are expanding in number and volume, and all signs suggest that the offshoring trend will continue surging forward in the legal services market. KV8PZ7PYM73Z