| Legal Process Outsourcing (LPO) refers to any | | | | go beyond the educational background of the team |
| processes or steps of work that are performed out of | | | | that supports it. A country like India could also have |
| a country to a third party that supports the delivery of | | | | people come from the educational background that |
| legal services. These processes or steps may range | | | | looks very attractive, but because of poor quality of |
| from simple steps to a highly complex delivery models. | | | | education they received, they will not be able to |
| As the modern society gets more complex with | | | | perform the requisite job. It is imperative to see on the |
| modern regulations, the requirements of such services | | | | job performance of the candidate before committing |
| may originate from law firms, corporate, individuals, | | | | to a long term work. This also brings us to the point of |
| Independent Attorneys or even Government Sector. | | | | having easy exit clauses with your Legal Process |
| One estimate puts the market of LPO currently to be | | | | Outsourcing partner, so that you are able to exit the |
| USD 250 million to grow to USD 640 million by the end | | | | arrangement as easily as possible, if required. |
| of 2010 and further annual growth of USD 146 million | | | | The other legal challenge that seems to have arisen in |
| per annum. And it seems highly predictable that | | | | outsourcing high technology patent applications have |
| majority of the share will be captured by India, having | | | | arisen due the recent USPTO circular that says it has |
| population that is generally good in English with | | | | become aware of the outsourcing of patent |
| significant costs differential as well. | | | | prosecution and therefore published a notice (Fed. Reg. |
| LPO services offer certain definite advantages. The | | | | July 23, 2008, Vol. 73, Number 124, Page 42781) in the |
| foremost of the same is costs savings. There are | | | | Federal Register, reminding patent applicants to comply |
| substantial costs differences between engaging an | | | | with the existing laws. The two primary sets of export |
| Attorney in a country like U.S., to that of country like | | | | control laws are the International Traffic in Arms |
| India. Whereas, a specialized Attorney in U.S. may | | | | Regulations (ITAR) and the Export Administration |
| charge clients up to USD 400 per hour of work, in India | | | | Regulations (EAR). While outsourcing has become |
| we will see the whole projects spreading over several | | | | somewhat of a national trend, outsourcing patent work |
| hours can be completed for the same billing amount. In | | | | has the potential for severe criminal and civil penalties |
| fact, a well educated experienced Attorney can be | | | | and the responsibility falls upon the exporter to |
| hired in India for full time for as little as USD 1200/ to | | | | determine if an export license is required under either |
| USD 1500/- per month working 45 hrs a week. When | | | | ITAR or EAR. Disclosing sensitive technology to any |
| Companies realize such a huge difference in payment, | | | | foreigner, even if within the United States, may violate |
| they are willing to take a bit of risk and start looking for | | | | federal law. A counsel experienced in export control |
| outsourcing partner. They are willing to compromise a | | | | matters can help avoid inadvertent violation and the |
| bit on quality in the beginning. They would hope that | | | | possibility of criminal and civil sanctions. The Patent |
| with training Attorneys the anticipated gap in quality of | | | | Outsourcing work (consider a big part of Legal |
| work would go down and they would be able to reap | | | | Process Outsourcing) thus may be subject to U.S. |
| substantial benefits in 6- 8 months. The Companies | | | | Export Control laws and has to be adjudged on a |
| and law firms tend to ship the work that is of less risk, | | | | case to case basis. |
| regular and repetitive in nature. In this tough economic | | | | One of the reasons, several customers / law firms are |
| environment, it makes all the sense to ship out regular, | | | | moving towards engaging law firms as their |
| repetitive work offshore. | | | | outsourcing partner is because it provides for privilege |
| The second advantage of off-shoring the work is also | | | | communications. If there happens to be clients/ |
| the timeliness and sincerity that goes into the work. An | | | | customer data that needs to be shipped to an outside |
| in-house employee is more likely to get bored doing | | | | country and it has potential of containing self |
| mundane work. Initially, an in-house employee will yield | | | | incriminating information, it gets protected under the |
| more productive, but over certain duration, it will be | | | | Attorney-Client Privilege laws of most of the countries. |
| noted that timeliness as well as commitment to work | | | | Similarly, the Attorneys and law firms need not be |
| will go down for a job that is non-challenging for an | | | | bound specially by Non Disclosure Agreements |
| employee. It has been noted that work shipped to | | | | (NDAs). There is a greater presumption of |
| offshore entity is more likely to be done in time and | | | | outsourcer’s data remaining protected and not |
| with vigor as it is not a job for an offshore entity, but is | | | | leaking out of the networks in case of law firms being |
| a business. One of the very famous off shoring LPO | | | | your outsourcing partner. |
| mentioned that they are willing to get graduates and | | | | In terms of Legal Process Outsourcing, immense |
| post-graduates do the document review (that can be | | | | opportunities and wide variety exists for solutions and |
| done by a paralegal person in U.S.), with continued | | | | cannot be enumerated in this article. However, we will |
| interest over a long period of time, whereas for their | | | | attempt to jot down certain important segments |
| head office they would hardly get legal people to | | | | where already we find commercial activities taking |
| maintain their interest. For a lawyer in India, a document | | | | place. The following are some of the segments in |
| review may be a career in itself that s/he will think of | | | | Legal Process Outsourcing (LPO) to watch for: |
| working throughout her/his life. | | | | 1. Intellectual Property Outsourcing: Drafting, Preparation |
| The other advantage of a LPO business is variety of | | | | & Filing of Patent Applications for USPTO; |
| solutions that are offered by an outsourcing partner. | | | | Preparation, Filing of Trademark Applications; Patent |
| The outsourcing partners deal with number of | | | | & Trademark searches; Preparation of Figures |
| customers and have experience in industry. They use | | | | & Drawings using advance commercial software; |
| modern IT tools and sometimes come with easy | | | | Preparation of Design Patent Application; Infringement |
| solutions in solving complex problems. For example, an | | | | Opinions; Patent proof reading. |
| outsourcer would have latest designing tools to draw | | | | 2. Litigation Support: Drafting legal suits, motions, |
| figures that go into patent applications. Or they would | | | | pleadings, reply to motions, legal notices, |
| be subscribed to latest databases that give summary | | | | C&D’s, recovery and mortgage related |
| of latest judgments on a particular subject matter. | | | | notices, Deposition and other transcriptions and |
| The formidable advantages that Legal Process | | | | E-Discovery and Document Review processes. |
| Outsourcing (LPO) offers do not come without set of | | | | 3. Contract Management: Corporate and Personal |
| its challenges and if not handled properly the LPO | | | | contract drafting, vetting and negotiations. The end |
| advantages can turn into nightmare. Therefore it is | | | | products are perfectly formatted to suit the needs of |
| very important how an outsourcer chooses it’s | | | | customers. |
| outsourcing partner. There are number of points that | | | | 4. Paralegal Support: Document /Record Archival |
| an outsourcer has to keep in mind and foremost | | | | & Retrieval, Summary writing, Case Management, |
| among them is the legal experience of the partner. We | | | | Lawyer’s calendar management, billing services, |
| should look closely at the management team and if | | | | data entry. |
| they can offer people who are good in offering legal | | | | Again to re-emphasize, the above list is not an |
| solutions and have experience in dealing with wide | | | | exhaustive one. Various new opportunities exist |
| variety of matters. It becomes imperative that people | | | | frequently. For example, one of the premier law firms |
| who handle the cases have some requisite number of | | | | based in New Delhi, India recently got an opportunity to |
| experiences in that particular field. Moreover, are they | | | | do a Real Estate/ property due-diligence work. They |
| crisp in jotting down and delivering solutions that are | | | | were trained online on how they could do a property |
| required by your customer? Do they need constant | | | | due-diligence based on 10 points on various |
| supervision or can they work independently. The | | | | Government databases available online. They started |
| integrity of Management team is another important | | | | with a modest headcount of 2 employees. The |
| aspect that need a bit of probing. What is the track | | | | contract now envisages a headcount of 50 |
| record of people on the helm of affairs in the | | | | experience lawyers over a period of 1 year. This |
| outsourcing entity? Are they committed in delivering | | | | shows the faith in the quality of output being generated |
| solutions on time? An outsourcing partner should also | | | | by Indian lawyers. |