Legal Process Outsourcing ? What are Pros and Cons?

Posted by Neha Gupta on March 6th, 2019

What is LPO?

The legal industry surge to the outsourcing of complex tasks these days. The concept of Legal Process Outsourcing (LPO) includes research, intellectual property services, contract negotiation, and due diligence. Today, more and more companies are believing that outsourcing legal processes with expert knowledge is hassle-free and good for their business. But, what is the LPO?… The legal process outsourcing or most commonly known as LPO is an outside legal support service obtaining by any law firm or corporation offshore/ onshore for their legal solutions.

How Does it Work?

Setting up an LPO and working with freshers in not as easy as other outsourcing businesses. The complexity of terms, time management, and team alignment may hassle up the lawyers with no knowledge. So, a deep study is must to work like a pro. It is the process where in-house legal departments, private law firms, and organizations from different geographical areas outsource their work to lessen the burden.

Legal Process Outsourcing works with a skillful blend of forensic, technical and legal expertise. It requires deep confidentiality in nature so that the sensitive information of the client must not leak on any grounds. The main cause for outsourcing legal work is the convenience and efficiency of the expert service provider. Technology has shrunk the time and distance of different geographical boundaries which realize the legal firms to develop strategies to provide efficient support systems at a global level.

What are the Pros of LPO?

Cost Saving:- LPOs lessen the burden of spent cost on areas like legal research, skilled labor, document review, due diligence, contract management, infrastructure, and equipment. Outsourcing drastically cut down the operating cost by half. Thus, the reduction of cost help to invest more revenue in the core areas of your law firm.

Round-the-Clock Services:- Outsourcing the legal process offer 24/7 availability of customer support. This help to increase your business with maximum customer satisfaction. With high client satisfaction ratio, you can also stay ahead of your competitors.

Flexible Staffing Models and Scalability:- The latest staffing trends are more important for boosting your business growth. LPOs offers flexible staffing and scalability that developed your client base and recruit top talents to enhance business.

Focus on Core Business Operations:- LPOs decreased the load of recruiting staff and providing facilities to them. Thus, you can focus on the other core business operations that are more important to grow your business.

Latest Technology and Changing Trends:- No doubt, outsourcing to any law firm means to be occupied with the latest technologies. In this day to day changing tech era, the trends also change rapidly. So, it can be troublesome for small businesses to let go with all changing routines. LPOs help them in this matter as they are well versed with all the latest ongoing innovations.

What are the Cons of LPOs?

Communication Gaps:- Offshore outsourcing entails a lot of management to cover the communication gap between the client and firm. Communications between the service provider and its customer must be clear and continuous. Lack of communication generally considered the lack of caliber which may hamper the business. Outsource offshore legal processes feel critics over clients’ expectations either because of cultural barriers or ineffective governance.

Hidden Costs:- LPO’s may lessen the costs of services but there are some hidden costs that affect customer ethics. Hidden prices are added to the overall pricing of outsourcing service that includes employee turnover, rising operating costs, profit margins, and quality control. In such case, you can ask your service provider to provide detailed price list to avoid hidden costs.

Confidentiality Breaches and Complexity of Work:- Law firms tend to maintain the confidentiality of cases and information. This is the most important thing for customer relationship. The threat of leaking information often stops clients from outsourcing legal processes.

The Decline in Quality:- Legal work is not limited to reviewing documents and accounting. It all depends upon the deep analytics of case information and it’s related casualties. This required a skillful team which provides quality results. The decline of quality hampers your business.


Every industry have some advantages and some disadvantages, so the LPOs has pros and cons. Despite the cons of the LPO industry, there is a significant rise in the number of legal processes where third-party service providers have taken the lead. The cost-effective legal services provided by these third-party vendors with expert knowledge are result oriented and help to reach your business goals. With LPOs, business owners can attentively focus on the core business valuables.

Advancement in technology, low-cost workforce and quality results anywhere around the globe allows business owners to opt outsourcing agency for their complex legal tasks. It becomes the mainstream occupation of offshore as well as onshore attorneys, lawyers and law firms. Moreover, the high-quality English speaking lawyers, fast research and managerial tasks have proved more advantageous for legal outsourcing community.

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Neha Gupta

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Neha Gupta
Joined: July 30th, 2016
Articles Posted: 40

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