Quality of Deliverables - LPOs follow QA and QC procedures
Legal process outsourcing (LPO) is not a new phenomenon and off-shoring is just one aspect of outsourcing. Lawyers and law firms have appointed individuals or firms perform legal research, pleadings, and memoranda long before outsourcing became so popular. Lately, many US and UK law firms and corporate bodies have realized that off-shoring is a great way to cut costs without compromising on quality. The rates charged by LPOs look miraculously low when they are compared to the rates charged by US lawyers. For example, US lawyers charge at least $200 per hour while LPOs charge not more than $70 per hour. Depending on the complexity of the work, the rate may go down to even $20 per hour.
Some people think that the quality of work is bound to be adversely affected just because LPOs charge less. However, this is not true. The lower costs are a result of specialization, distribution of overheads among various clients, and lower wage rates in developing countries. None of these can be linked to low quality.
Since LPOs have personnel who are trained to perform only certain tasks, it is only natural that they accomplish more than what a person can achieve when he or she handles diverse tasks at the same time. Moreover, these trained personnel are supported by adequate IT facilities. Consequently, their productivity is naturally higher. This specialization also enables LPOs to have quality control and quality assurance mechanisms. Most of the LPOs follow a two-tier review process whereby the work of the First Line Reviewer (FLR) is reviewed by a Quality Control Reviewer (QC). This process helps in minimizing the error rates thereby ensuring best quality work-product.
In India, the National Association of Legal Process Off-shoring Companies (NALPOC) is standardizing the training procedures of lawyers in LPOs and setting standards and benchmarks for legal services, thereby ensuring that all work go through quality check processes.
LPOs acquire infrastructure and set up offices to cater to a number of clients. Since these firms do not depend on the success or failure of one firm, their investments involve a lesser degree of risk. This also reduces the costs of operation.
Apart from the cost factor, another reason why LPOs are becoming popular is the time zone difference. When documents have to be processed fast, round the clock processing can be achieved without compromising quality of work if legal work is outsourced to a country like India. If a lawyer in USA is asked to work all day and night regularly, the chances of error and burnout are bound to increase. However, the same work can be done properly by people working during day shifts by LPOs.
Another advantage of off-shoring work is that the corporate body or law firm can allocate more resources to its core operational fields. Tasks like data management, book-keeping and reconciliations, reviewing legal documents and agreements, summary preparation, patent and trademark research, and drafting motions, contracts, pleadings, or briefs can be passed on to specialists working in LPOs.
Off-shoring is based on the principle of 'work shall go where the worker is'. The world has become a smaller place long ago and companies that refuse to tap international talent will naturally fall behind.
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