How can law firms benefit from LPO
As the demand for more competitive fees and access to advanced communication and information technologies increased, so did the need for innovative and creative solutions to deliver legal services
Legal Process Outsourcing (LPO) is one of the fastest growing markets in the outsourcing industry. It has a nearly 29% annual average growth rate. Also, it is already common practice for law firms to outsource part of their legal processes. This is mainly due to the many benefits LPO provides legal practitioners. However, what exactly is LPO and how can law firms benefit from it?
What is LPO?
LPO is the transfer of both non-core and core legal tasks and activities to external vendors. Law firms and in-house legal departments outsource a wide range of legal services. This includes recurring and high-volume tasks to more complex tasks. For example, corporate forms and litigation document review, research, contract negotiation, intellectual property services and due diligence.
Law firms looking to increase efficiency and profitability engage with an LPO partner to help scale their business. Qualified LPO partners can help law firms implement process innovations and transformation to deliver more efficient work.
In addition, having an LPO partner gives law firms more time to focus on higher value work and client-facing activities. Further, law firms and in-house corporate legal departments outsource legal services to improve delivery, making their clients happier.
What are the benefits of LPO?
In Australia, LPO has been a thriving business model for over 10 years. Law firms are taking advantage of the many benefits LPO can provide to increase their scalability. Some benefits are:
- Cost savings
Outsourcing legal functions help law firms and businesses to save on costs. Law firms and in-house corporate legal departments can save up to 70% of costs when they leverage LPO. In addition, LPO can reduce administrative and training costs since the outsourcing services provider will shoulder this.
Furthermore, offshore LPO services providers offer more cost-effective legal services across a wide range of tasks. Thus, LPO is a brilliant way for law firms to become more competitive.
- Access to expert talent
LPO allows law firms and in-house corporate legal departments to access high-level talent and niche experts. Outsourcing legal services allows law firms to access experts that do not exist within their firm.
Hence, law firms can fill gaps in internal competencies and increase their capabilities, allowing for better client delivery.
- Faster turnaround time
Partnering with an LPO service provider can help law firms expand their capacity. In addition, having an external team can reduce turnaround times for legal projects or case completion.
Moreover, LPO services can give law firms access to more experts and experienced staff who can complete specific tasks faster.
- Flexible staffing
Outsourcing legal services allows law firms to tailor their capabilities. Law firms can easily upscale their teams to handle significant volumes of work in response to time-constrained regulatory inquiries. Likewise, they can down scale their teams on short notice after a project or case has been completed.
Hence, law firms can scale when necessary without the added overhead and administrative costs.
What are the disadvantages of LPO?
Indeed, the many benefits LPO can provide law firms and organisations prove to be quite advantageous. However, some law firms believe that LPO can create potential risks to the legal profession. Since outsourcing legal work is unique, legal practitioners are concerned about possible disadvantages of LPO, such as:
- Ethical issues
Outsourcing legal work requires legal thinking skills and knowledge on legal standards and best practices. It also involves in-depth understanding and knowledge of law systems and ethical rules that apply to lawyers.
Hence, LPO services providers must have qualified legal staff to oversee and perform the outsourced legal tasks. In addition, legal support staff must have sufficient legal training to ensure that they understand the requirements of a project.
- Confidentiality concerns
The level of confidentiality involved in legal processes is relatively high. Hence, the threat of leaking sensitive information is one factor why legal practitioners are hesitant to outsource legal tasks.
LPO services providers must ensure that they can provide complete data security and privacy. This is not only to protect their clients, but also their clients’ clients.
- Quality control
The fear of a decline in quality is not uncommon in outsourcing any type of service. Moreover, law firms believe that outsourcing to professionals who may not be qualified will lead to poor quality.
In addition, legal work requires accuracy, great attention to detail, and timing. Hence, it is important that qualified and trained professionals perform the legal tasks. LPO services providers must ensure that they do not compromise the quality of work.
- Communication and cultural barriers
Good communication and full understanding of expectations are vital to the success of any legal project or case. Hence, LPO services providers must maintain regular communication with clients. This is to make sure that they understand their client’s goals and expectations of the project or case.
LPO services providers must also ensure that they understand the culture of their clients to be more efficient and cost-effective.
How can DBA help legal firms benefit from LPO?
DBA Legal Outsourcing Pty Ltd is an incorporated legal practice in New South Wales, Australia. We provide of legal and paralegal services to Australia and the United States.
Our in-house solicitors overseeing all legal processes and training of our paralegals and document specialists. Hence, we guarantee that all documents meet the standard legal requirement. Moreover, we ensure accomplish all tasks according to your firm’s standard of service.
We have invested in the latest technology and software to give the highest level of data security and privacy. Hence, we guarantee that all legal information is safe and secured from any form of breach or attack.
We provide legal services in the areas of property law and conveyancing, commercial, technology, wills and estates, and litigation support. Our experience allows us to address issues across various jurisdictions. Thus, we can help you guide your clients in choosing the best legal option, with the highest benefit.
We are also PEXA certified. Our team have advanced technical skills in electronic exchanges and settlements of property transactions. Moreover, our deep understanding of innovations in technology allow us to provide end-to-end solutions to solicitors.
Indeed, the LPO services DBA provides can help law firms benefit from outsourcing legal work. Moreover, the value-added services that DBA offer is guaranteed to help law firms pivot and scale in a shorter amount of time.
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