India dominates the Legal process outsourcing market

1. Analysis & Outlook
Global Legal Process Outsourcing market crosses US$ 1 billion in revenues in 2012
According to a study by LPO program, the global legal process outsourcing market has reached
the $1 billion mark and is continuing its growth at an annual growth rate of 32 per
cent.According to Global Outsourcing Association of Lawyers blog post on
www.kpoconsultants.com, the global spending on legal services is estimated to be around $250
billion. United States alone contributes about two-thirds ($167 billion) in terms of legal services.
For law firms and organizations outsourcing of legal services to India can be considered to be a
lucrative option but it is not feasible to outsource every type of legal service, hence the market
for legal services outsourcing stands at around $111.2 billion. Out of which India can only target
only 3.6% ($4 billion) and in reality only 2% ($80 million) has been outsourced till now. This
highlights the fact there is a relatively big untapped market available for the Indian LPO vendors
and other global LPO vendors to exploit which also helped the industry to cross the billion-dollar
mark in 2012.According to a Nasscom market intelligence report, the LPO segment is expected
to touch $15 billion by 2015.
The Indian LPO space is dominated by pure play LPO vendors such as Pangea3, CPA Global,
Unitedlex, Integreon, Intellevateand
Evalueserve. In 2010, Pangea3 became part
of Thomson Reuters, the world’s leading
provider of intelligent information to legal
and business professionals. In the initial
days of Legal Process Outsourcing (LPO) to
India most of the work used to be backend
processing like transcription but the high
end work like IP processes, legal research,
pre-litigation documentation, document
analysis, preparing software licensing
agreements is presently being outsourced to
India along with the low end work as the
Indian LPO vendors have matured and have built the capabilities in terms of skills and hired
talented lawyers. One of the important process for companies is the patent filing which is also
being outsourced to India which is known as Patent Process Outsourcing (PPO and the process
has more than 900 professionals who are qualified and trained to provide patent related services
at a cost of $2,500 compared to $8,000-$12,000 charged by U.S. firms.Currently, the entire
Indian LPO sector only employs some 50,000 people, according to Sanjay Kamlani, the co-CEO
of New York-based Pangea3.
India already has more than a million practicing lawyers, and another 70,000 new graduates are
added every year as they pass out from various law colleges across India and these lawyers are
educated in English medium, similarities between Indian Legal System and U.K., U.S., Canada,
and parts of Europe, labour cost arbitrage, time zone advantage, experience in providing various
Rajesh Prabhakar Analyst Bio @http://itbizcharts.blogspot.com/

2. Analysis & Outlook
types of outsourcing services, and the clear edge that Indian LPO vendors have in terms of cost,
quality and turnaround time. Along with the pure play players Indian Outsourcing giants like
TCS, Infosys, Wipro all offer LPO services and they work with very prominent US
clients.Despite the hype in the past years the Indian LPO industry had been growing steadily but
far slower than the other types of outsourcing which are Information technology, Business
process, and Knowledge process.Most of the time the high end work cannot be outsourced and
the reliance on the low end work is not highly profitable and to increase the high end work
Indian LPO vendors are also setting up onshore centers in United States and United
Kingdom.According to ValueNotes, market intelligence and consulting firm the large pure play
LPO players are financially strong and they can survive in the industry and grow but smaller
pure play LPO players will struggle due to their inability to maintain consistent operating profits,
resulting in rising debt levels. Overall Indian LPO vendors majorly the pure play vendors will
dominate the Global Legal Process Outsourcing Market and will see steady growth in the next
few years.
Table of various services provides by Legal Process Outsourcing Vendors
Low skilled quantitative tasks consist of: High end qualitative tasks include:
Paralegal Services & Legal Coding Intellectual Property Rights & IPR
Corporate Secretarial Services Portfolio Management
Legal Memo Development Patent Search & Application drafting
Medical & Legal Transcription TM and Copyright Registration
Document Management Legal Research/Opinion work
Litigation Support Document Review and Analysis
Data entry Intelligence Services
Immigration data analysis and working on Contracting and Administration
labor relations
Source: http://www.kpoconsultants.com/resources/blogs/2012/08/12/12-legal-process-
outsourcing-to-move-beyond-mere-billion-dollar-status.html
Rajesh Prabhakar Analyst Bio @http://itbizcharts.blogspot.com/