What is Legal Outsourcing? How Your Business Can Benefit from LPO

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What is Legal Outsourcing? How Your Business Can Benefit from LPO

What is Legal Process Outsourcing (LPO)?

Outsourcing is now an accepted fact of business life, and with good reason—it can bring many benefits to a company. One area that is gaining popularity among businesses is legal process outsourcing (LPO), which is essentially outsourcing the management of your legal procedures to a third party.


Did you know that the legal process outsourcing (LPO) market is predicted to be worth almost $36 billion four years from now? That’s exponential growth!


The legal industry landscape is changing, and with it, businesses are beginning to realize they no longer have to conduct legal work in-house. In fact, the attractive cost savings benefit of outsourcing has many reconsidering whether they need an in-house legal department in the first place.


LPO refers to contracting out legal tasks previously done in-house to an external service provider. Depending on the region and outsourcing services you are considering, LPO can be split into three different branches:


  • Offshore outsourcing involves working with an LPO provider outside of the country your company is in.
  • Onshore outsourcing involves sourcing contractors in the same country but might be located in a different state or city.
  • Nearshore outsourcing comprises outsourcing legal work to countries or regions neighboring the company’s home country.


Depending on a company’s personal needs, offshoring may be more favorable than onshoring. This is entirely up to the firm in question and the type of support services and legal process outsourcing companies you’re looking at.


What kind of legal processes/tasks can be outsourced?


LPO services and the nature of the outsourced work itself can vary greatly depending on the legal support you’re looking for.


Through LPO, you no longer have to retain full-time staffing to manage your legal functions and workflows. Out of the various legal tasks a company may do, they can choose to streamline the ones most critical to their operations (or least!)


These include, but aren’t limited to, the following examples:

  • Paralegal services
  • Secretarial support
  • Contract drafting
  • Contract management/document management
  • Document review
  • Intellectual property, patents, and trademark support
  • Word processing and data entry
  • Legal research
  • E-discovery
  • Litigation support
  • Due diligence
  • Legal staffing


Key Advantages of Outsourcing Your Legal Processes

Your business processes can benefit significantly by opting for outsourced legal services. Here’s how.


Reduce employee stress

Your employees can benefit from a better work-life balance if you lessen the load and outsource some of their legal tasks to external law firms and outsourcing companies. The last thing you want is to be dealing with a burnt-out workforce. LPO can help with that within your legal department.


Access to professionals and subject matter experts

24% of small firms and businesses outsource their operations to achieve better efficiency. How so? By gaining access to professionals who can provide legal solutions at a lower cost. The legal support accessed through LPOs generally is high-caliber experts in their niche.


Increase revenue or save money by freeing up internal resources

Many businesses are still struggling to survive in today's challenging economic climate, and any opportunity to save costs is likely to be welcomed. Outsourcing some or all of your legal obligations to an LPO provider can result in significant cost savings.

This is especially seen in back-office outsourcing but can also apply to LPO. In the long run, LPO can help boost your revenue and operational efficiency as you redirect your best internal resources to value-add activities directly linked to your bottom line.


Quicker turnaround times

When you work with professionals in the field, chances are they’ll deliver the results you want faster than a non-lawyer or in-house counsel whose experience may be limited. For corporate legal affairs that are sensitive (such as litigation or dispute management), this can make all the difference. Time-consuming issues can lead to operational bottlenecks, slowing up your business progress.


Provide high-quality work in other value-add business areas

You might be pleasantly surprised by the range of legal activities that LPO covers. While approaching an LPO firm, you could have one thing in mind and, after a consultation, realize they can provide more support than you initially thought. How does this help? It’ll produce high-quality results in your legal areas while giving your business the chance to flourish in other core areas.

For example, if you have an upcoming product launch, chances are your focus would be more on customer support than the legal specifics.  


Focus on and prioritize what you do best

Through LPO, firms get to make the best of both worlds. They can outsource the secondary functions (non-value-add activities) and choose to keep the core legal functions that are more sensitive in-house.

Enabling this flexibility gives your business the chance to “breathe,” and this isn’t a benefit that is purely reserved for bigger businesses. While it’s true that 66% of companies with over 50 employees outsource, the fact that 29% of small firms also outsource is encouraging.

Suffice to say: The size of the business is not a relevant factor to gain the benefit of flexibility and optimization!


Legal Process Outsourcing Made Simple with STAFFVIRTUAL

With the rise of outsourcing services in general, be it IT or even payroll management, more and more businesses are beginning to see the significant benefits external providers can bring.


Outsourcing law has grown in popularity since the rise of corporate attorneys and legal firms alike and can be an excellent solution for your business. It allows you to focus on your core activities while delegating time and labor-intensive legal tasks to an external provider, easing the burden on your firm or business.


There are many considerations you should make when it comes to legal process outsourcing.


The decision to outsource any facet of your firm's work is an important one, and you'll want to ensure you're choosing a reliable provider.


At STAFFVIRTUAL, we put this notion into practice by providing outsourcing services tailored to the needs of different types of firms. Regardless of whether you are looking to cut costs or produce better results, our highly skilled professionals can ensure you are able to meet your individual needs.


legal-process-outsourcingThis is just a snippet of the clients we cater to. Click here to learn more!


Are you excited to take your business to the next level?


Get your free outsourcing plan with STAFFVIRTUAL today!

Ike Stranathan

Ike Stranathan

Ike Stranathan founded STAFFVIRTUAL in 2009 after moving to the Philippines from California. Ike lives just a block from his offices in Makati, Philippines, and is passionate about helping companies achieve dynamic growth by outsourcing.

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