| Research done by KPO Consultants suggests that | | | | prospering Legal Outsourcing industry. Mysore-based |
| there are little over 100 LPO companies in India and the | | | | Software Paradigms International (SPI) India acquired |
| LPO industry is moving towards mergers, acquisitions | | | | the entire BPO/ LPO clientele of Comat Technologies |
| and consolidations. Big BPO players including Infosys, | | | | across the US and the UK, which is presently served |
| HCL, WNS, Wipro, Exl and others are seeking a | | | | by Comat's Mysore-based operations. The transaction |
| toehold in the Legal Process Outsourcing industry. | | | | transfers around 400 professionals of Comat to SPI |
| Their financial strength enables them to use multiple | | | | and will enable the company to expand into new areas |
| entry routes to the Legal Process Offshoring field. The | | | | and verticals, such as LPO and MT. |
| margins in the BPO industry are 12-15%, while LPO | | | | Market differentiation is the key for LPOs wishing to |
| offers margins as high as 40%, using fewer | | | | stand out as potential targets for BPOs. Interested |
| employees. Moreover, established India-based BPO | | | | Legal Outsourcing buyers must define their distinctive |
| firms are already serving foreign clients, including | | | | features and benefits, identify high profile customers, |
| financial institutions, insurance companies, and | | | | and create teams based in India and the US. Effective |
| corporate law departments, all of which are big users | | | | differentiation is responsive to the key buyer question: |
| of legal services. After the foreign firms develop a | | | | "Why you rather than some other LPO?" The ideal |
| level of comfort with Indian vendors, the LPO pilots are | | | | answer would address all these: |
| bound to start. | | | | • Identification of target clients - LPOs |
| Many existing BPOs have sound knowledge of foreign | | | | • Needs and opportunities that can be satisfied |
| markets, adequate infrastructure, and multinational | | | | • Unique services and product categories on offer |
| presences. Finance is not a problem for them; the only | | | | • Key benefits of association between BPO and |
| thing missing is an understanding of the nitty-gritty of | | | | LPO |
| the Legal Outsourcing business. Once they learn about | | | | • Key differences between the LPO and its |
| the Legal industry business, they will rise fast. Big BPO | | | | competitors |
| companies are scouting for small (100-seat) LPO | | | | • Availability of successful and promising marketing |
| companies to expand their reach and revenues. They | | | | tools |
| may acquire, collaborate, or simply enter into joint | | | | • Deployment of financial resources |
| venture arrangements for legal process offshoring. | | | | • Vision for the joint venture or merger |
| These companies are talking with private equity | | | | LPOs that can lure attention through sound |
| investors about buying stakes in several leading LPO | | | | differentiation of services provided, markets catered to |
| companies. | | | | and revenue and number of employees, are likely to |
| Which LPOs make attractive targets? How does a | | | | merge and grow. LPOs must understand the |
| BPO evaluate the many LPOs? Synergy requires | | | | significance of "Brand Positioning". Unambiguous |
| matched business objectives. LPOs backed by larger | | | | positioning will lead to appropriate linkages and |
| houses with robust contacts, management vision and | | | | marriages between BPOs and LPOs which benefit |
| big pockets can expand faster. Followers of LPO | | | | both. |
| know that there have been several acquisitions in the | | | | |