Sharing from London- Becoming too dependant?

Law firms and Corporations in the foreign destinations are not at all comfortable about becoming too dependent on any one particular LPO.

They know it is dangerous because extreme dependency affects them with every administrative and managerial change in the LPO. The LPO’s attrition directly hits their work and they suffer. The change of TLs and Managers during the pendency of the project causes major trouble to the work-flow of the off-shoring company.

Outsiders to the deal might get the impression that a particular LPO has almost monopolized a particular UK or US law firm. But from the comments made by many real time off-shoring law firms it was unambiguously clear that they have no choice because there aren’t too may players who can handle high volume.

They would love to look at alternatives which are equally good as back up, but such equally good LPO has to exist.

It was pointed out to them in the Conference as to what stops them from looking at medium sized LPOs as a viable alternative; the answer that came was that the reason that makes the law firms look only at big ones is because of the quick scalable capacity of the big LPOs.

Hope that those who read my blog articles in the KPOC website, might recall that I had pointed out the very same thing in one of my previous blog posts.

It is a fact that scalability has got a direct connection with the availability of working capital. It is not possible for each and every medium sized LPO to pump in great amount of working capital.

So what would they do?
Keep on existing as small units which the bigger customers would not want to look to?
Be satisfied with what ever comes their way?
Do some clerical job and fancifully wish that they were running LPOs?

Is it not high time that the medium and small sized LPOs made some collaborative efforts to unite and merge rather than struggle to exist as small and minuscule units?