Richard Susskind, author of “The End of Lawyers?”, in his article “Turning to India at break-neck speed” talks about the research conducted by RSG Consulting and the reasons behind increasing business diverted to LPOs.
The report makes the following points:
1. 10 of England’s top 30 law firms have outsourced back office functions or legal work to India.
2. Although the legal market is evolving at break-neck speed there is a dearth of experience and attrition rates are high.
3. Purchasing power of general counsel in India has increased.
4. Shift in the attitude of top English firms with respect to outsourcing – resistance weakening considerably.
5. Huge difference in salaries meted out to Indian legal graduates by Indian LPO companies and to qualified associates by Wall Street firms.
6. Not only law firms but also the clients that they used to serve are outsourcing legal work.
At the end of the day, cost is the dominating factor.