Tuesday, November 9, 2010
Wednesday, November 3, 2010
Monday, November 1, 2010
Friday, October 29, 2010
Tuesday, October 26, 2010
Sunday, October 24, 2010
Friday, October 22, 2010
Wednesday, October 20, 2010
Monday, October 18, 2010
Saturday, October 16, 2010
The natural progression of a nation’s economy usually flows from agriculture to industrialization to services. The first two (agriculture and industrialization) can be affected by imports or foreign competition but realistically speaking cannot be outsourced. It is only when the economy enters into the third and definitive stage of services that the law of survival kicks in and paves way for outsourcing.
In a commercial contest of homogeneous service providers, the winner is usually the vendor with the best price. This simple economic principle gets elevated almost to law of nature in a credit starved economy. Jingoistic economic fervor apart all of us realize this simple home truth that if a law firm is able to retain a client by billing him at $X an hour because some of its back office processes have been outsourced then there is no way it can continue to service the same client at $X+10 an hour merely because it has been forced to severe its outsourcing ties given to political interests. The market would simply cease to exist at that price.
The irony of the so called debate around outsourcing is that it’s not new at all. Any time there has been a technological advancement in the forces of production, it has been stoutly met with charges of job elimination. The transition from a farm based economy to an industrialized economy wasn’t a cakewalk either. But people came around when they realized that there was a better way of doing things. That is all there is to outsourcing- it is a better way of doing things.
By mixing issues of trade with politics of nationality and unionism, we only tend to serve political interests and not economic. Outsourcing is not about transfer of jobs from one country to another. It is about creation of value. If legal services can be provided at better prices without compromising at quality then the service providers would find a way- whether outsourcing or some other method.
So this November rather than the resisting the countlessly repeated cycle of change, join us to find out how you can best adapt and grow...
Wednesday, October 13, 2010
In his Nobel Prize winning paper titled ‘The Market for Lemons: Quality Uncertainty and the Market Mechanism’ economist George Akerlof addressed the problem of information asymmetry which occurs when the seller knows more about a product than the buyer.
Akerlof analyzed the problem of information asymmetry using market for used cars as an example of the problem of quality uncertainty. Akerlof in his market analysis concludes that given to the absence of reliable information about the car condition, a buyer would only be willing to pay average price for a very well maintained used car (cherries), as he has no way of differentiating between an ordinary (lemons), an average and a good car. This in turn would drive out the sellers of good cars who would not be getting fair value for their cars. As a result of the exit of the good car owners, the average quality would come down, causing buyers to revise downward their expectations for any given car. This, in turn, motivates the owners of moderately good cars not to sell, and so on. He goes on to successfully predict that this implosion would continue till the market capsizes under its own weight as a result of unavailability of reliable information.
This problem of information asymmetry manifests itself in all the markets but it becomes more pertinent and complex in a global business scheme. Legal businesses are built upon years of practice and reputation. It is a business model essentially based on trust and the ability to deliver in crunch time. Hence when a law firm decides to outsource some of its business operations, it is not just outsourcing back office support but it is hedging its years worth of stellar reputation on the LPO vendor’s ability to deliver on deadline while maintaining highest level of professional ethics.
Since the stakes are higher in the outsourcing industry in general and in LPO industry particularly, it is of utmost importance that a law firm before deciding to outsource its office operations is able to vouch for the credibility of the LPO Vendor. The Global LPO Conference is a unique opportunity to interact with the LPO service providers, visit their operational facilities and select the business partners that can best serve your interests. So join us this November and enhance your business prospects by distinguishing between cherries and lemons...
Monday, October 11, 2010
In our last post, we tried to give you a flavor of the strategic importance of global alliances in legal industry. The undeniable rationale behind formulation of suitable and lasting alliances is also applicable to another risk mitigation plan of diversification.
It is interesting to note that while the elite law firms have forever been diversifying their practice areas to keep up with the requirements of the clients and developments in law, there is precious little that has been done in terms of diversification of back-end support and cost cutting measures.
With the coming of age of the Legal Process Outsourcing industry we are increasingly seeing diversification both on the lingual and practice front. One standard problem that the global legal players continuously face while dealing with LPO service providers is of language. The industry with its origin in the English speaking common law world has so far been of little assistance to many European nations. However, this is set for course correction. With the leaders of the industry predicting massive recruitment and 100% growth, expansion plans are in full sway. Many LPOs now aim to conquer the lingual barrier by setting up bases in civil law jurisdictions in order to provide back end support to a new range of clients.
The second diversification has quietly crept in without much ado and fan fare. As the LPO industry has steadily shown its competence from one legal arena to another, it keeps on attracting new portfolios. Beginning with document review to research to case note preparation to patent outsourcing to drafting, the LPO industry now offers a fool proof model with reliable processes to serve the needs of a diverse practice law firm.
This diversification of outsourcing of back office support serves the dual role of insuring against the cyclical nature of legal business by cutting costs; and secondly it enables the outsourcing law firm to aggressively pitch for additional business with its existing resources as a large portion of its standardized legal service is now being taken care of by reliable business processes.
Hence, come this November, it’s time to explore and diversify. We invite you to the Global LPO Conference 2010 to interact with a select group of LPO service providers and find out how the LPO industry is successfully servicing the global law firms across the lingual and practice divide. It’s time...
Friday, October 8, 2010
History bears witness that human beings tend to go tribal in the face of the unknown and find solace in similarity in crisis. However, historically the strongest and unlikeliest alliances are also formed during times of adversity. Some of the strongest military, diplomatic and trade alliances have been formed on the sidelines of the biggest crises that world has seen.
Hence as we see some signs of global economic recovery, it’s not time to adopt a protective economic model that will see short term concentrated pockets of growth at the cost of sustained economic progress. It is not time to lose out on monumental opportunities on account of constraints. It’s time to adapt and thrive.
Legal industry given to its affinity to the financial and commercial world has perennially been cyclical and prone to booms and busts. At a time when leaders of the world are repeatedly getting together in multilateral forums to revamp the global regulatory model; it is incumbent upon the global legal community to get together to set its house in order and put effective processes in place that would help reduce costs while not compromising on quality.
Legal practice with all its variety and flavours has forever been evolving from ‘Mom and Pop’ small time practices to Queen Counsels to Big Ticket Law firms to specialized boutique law firms... so on and so forth. Legal Process Outsourcing is the next and definitive step in this evolution. Legal outsourcing works not because of the vagaries of exchange rates. It works because it allows you to optimally allocate and utilize your resources by putting your best brains on the big ticket items while back office support is efficiently managed.
Globalization is not merely about migration of human labour and capital but it also represents coming together of minds in order to forge a better tomorrow. So, this November we invite you to join some of the finest minds in the legal industry to forge lasting solutions and alliances that serve you and your client’s needs better. Come find out why you should have been part of this evolution all along and why it’s not too late to ride the wave of legal change.
The Global LPO Conference is a wonderful opportunity to introspect and examine your existing business practices, inquire and investigate about business opportunities and initiate alliances that will counter act the cyclical nature of the business. It’s time...