LPO_India

8/6/2019 LPO_India

http://slidepdf.com/reader/full/lpoindia 1/5

760 The Chartered Accountant November 2006

i n f o r m a t i o n t e c h n o l o g y

Legal Process Outsourcing Industry – An Analysis

Question1. Where does the business o legal

process outsourcing emanate rom?

Answer: The legal process emanates rom theollowing entities:

l Several MNCs (in-house legal departments)

l Legal research rms

l International law rms

l Legal publishing companies

l Solo attorneys

l Attorneys-at-law

Question 2. What are the key compellingreasons or outsourcing by law rms basedin UK & US?

Answer: The ollowing are the compellingreasons or outsourcing:

l To adapt themselves to meet changingopportunities

l To ocus on broader business issues

l Cost eectiveness

l Increased external ocus o the employees

l Access to world-class talent

l 24/7 working

Question 3. What about the market size andgrowth prospects?

Answer: Table 1 illustrates the market size withthe growth.

Global spending on legal services is estimatedto be at least over US$ 250 billion, with the USaccounting or more than two-thirds o themarket.

Question 4. What is the break-up o totalspending by the top US based law rms?

Answer: The ollowing table shows the annualspending break up:

According to Forrester Inc., though there islittle hard data available to quantiy the legaloshoring segment o the Indian BPO industry,it is estimated that only about 2-3% (US$ 60-80million) o the potential market has been tapped

so ar. Reports indicate that billing by Indianlawyers to US rms or in-house work aloneranged rom US$5 million to US$15 million in

(The author is Director & CEO Acclivant Out-

sourcing Services Pvt. Ltd, New Delhi. Hecan be reached at [email protected])

— Pankaj Parnami

Table - 1

Market Size or Legal Services in 2003

Country Amount(US $ Billion)

Growth over theprevious year (%)

Australia 6.9 11.6

China 1.6 7.0

France 18.4 14.0

Japan 1.09 8.0

South Korea 1.61 -3.3

UK 34.2 3.6

USA 166.8 5.6

Category Annual spend(US$ billion)

Share o total spend

(%)

Ofce operations 6.2 31.1

Litigation support 4.9 24.6

Word processing andsecretarial

2.9 14.6

Inormation systems 2.5 12.6

Marketing 0.85 4.3

Legal research 0.62 3.1

Finance and accounting 0.50 2.5

Library 0.50 2.5

Legal recruiting 0.35 1.8

Human resources 0.20 1.0Patent & trademark prosecution

0.40 2.0

Total 19.92 100

8/6/2019 LPO_India


8/6/2019 LPO_India




And Indian share is expected to be – 60%

Market tapped so ar by existing LPO serviceproviders till date – 3%.

Source: The Management Accountant

Question 9. Why is India in the lead in thelegal outsourcing industry?

Answer: The ollowing advantages make Indiathe leader in the legal process outsourcingindustry:

Demonstrated Advantages:

l Vast resource o talented English speakinglawyers

l Pay rate between 10 to 15% o that o USlawyers

l Helping US law rms operate 24x7

l Friendly Government policies or IT and ITESexports

Country Specic Advantages:

l India, like the US, is a common-law jurisdiction rooted in the British legal

traditionl Appellate and Supreme Court proceedings

in India takes place exclusively in English

l Indian legal opinions are written exclusivelyin English

Question 10. What type o governmentsupport is available or the LPO players inIndia?

Answer: Government has provided various

supports, which are as ollows:

100% Income tax exemption or export o services:

According to CBDT, the exemption wouldembrace the ollowing (ew) services:

Back-ofce Operations + ContentDevelopment or Animation + Engineering &Design services + Human Resource Services +Insurance Claim Processing + Legal Databases

Other support:

l Duty-ree imports o capital goods (under

the Export Promotion o Capital Goodsscheme)

l Foreign Direct Investment (FDI) or 100percent o the equity in BPO companies

l Promotions o STPs which provide ready-to-plug IT and telecom inrastructure

l National Venture Fund or the Sotware andIT Industry with a corpus o Rs. 100 crore

Question 11. What are the spheres o businesses which can be covered in the LPObusiness?

Answer: The spheres o business which can be

covered, are:

Question 12. What is the supply source o

legal outsourcing services rom India?

Answer: The diagram shows the supply sourceo legal outsourcing services rom India:

Question 13. What are the billing charges inthe outsourcing industry?

Answer: The billing charges are as ollows:

• Appeals• Arbitration & Mediation• Banking and Lending• Corporate and Securities• Broker/Dealer (Finance)• Commercial Litigation

• Mergers and Acquisitions• Real Estate• Taxation• Insurance• Intellectual Property• Business Advisory Services

8/6/2019 LPO_India


The Chartered Accountant 763November 2006


Question 14. What is the channel structureor the fow o inormation?

Answer: The channel structure is given in thechart exhibited below:

Question 15. What types o services arecovered in the legal research and inormationarea?

Answer: The services covered are:

l Drat research memoranda, law surveysand comparisons o the laws o various

jurisdictions with respect to US ederaland state case laws, statutory laws andregulations

l Collection, organising, reviewing data andpreparation o the due diligence reportspursuant to a due diligence investigation,

including M&A due diligence and due

Area Amount(US$ per hour)

Telemarketing 5-12

Transaction Processing 10-14

Tech Support (inbound) 11-12

Printing Support Services 15-25

Basic Back Ofce 15-25

F&A 15-35

Document Management Services 30-50

Research & Analysis 40-90

Patent Drating & Legal Research 150

diligence related to SEC lings andnancings

l Review documents or transactions andlitigation and preparing appropriatereports

l Preparation o legal opinions or all practiceareas and o bries and acts at all levels o courts

Question 16. What about patent orientedservices?

Answer: Following are the patent orientedservices:

l Patent Portolio Analysisl End-To-End Patent Application Drating and

Filing

l Patent Mining and Administration

l Competitor Analysis

l Patentability Assessment

l Licensing Support

l IP Monitoring

l Patent Claims Mapping

l Patent and Technology Landscaping

Question 17. What is the LPO businessprocess in brie?

Answer: The diagram represents the LPOworking process in brie:

Question 18. What about the IP prosecutionwork in the LPO industry?

Answer: The ollowing chart explains the IP

prosecution work:

8/6/2019 LPO_India




Question 19. What is the data extractionservice in the LPO business?

Answer: The data extraction service iselaborated below:

Question 20. What are the necessaryrequirements to target a UK based client?

Answer: The vendors based in India mustimperatively get well-versed with the Lexis Nexis

sotware workings (to target a UK based client)encompassing the ollowing vital aspects:

Question 21. What are the ew onlineresources available or research purposes?

Answer: The available online resources are:

Legislation • UK Act Summaries• UK Bill Summaries• UK Parliament Acts• UK Parliament Statutory

Instruments

All England &Case Search

• All England AnnualReview

• All England European Cases

• All England Law Reports• All England Reporter• Case Search

Companies &CommercialLaw

• Buckley on theCompanies Act

• Bulletins Index• Companies House Forms• Corporate Law Update• General Case Digests

FinancialRegulations

• Butterworths BankingLaw Handbook

• Butterworths CompanyLaw Handbook

• EU Materials• UK Legal News Analysis• UK Legal Newspaper

Index

IntellectualProperty &Inormation

Technology

• Domain Name Decisionswith Case Comment

• General Case Digests• Intellectual Property &

Technology Cases• IP Decisions• IP Newsletter

Tax Reerence • Simon’s Direct Tax Service• Simon’s Tax Cases• Simon’s Tax Intelligence• Simon’s Tax Planning

Executionresource

Legal orms http://secure.uslegalorms.comDiscussion orum http://www.outsourcingorum.net/Find articles http://www.ndarticles.com/

Legal Search law.com http://www.law.comFindlaw http://www.ndlaw.comHieros Gamos http://www.hg.orgABA Factbooks http://www.abanet.org/media/actbooks/home.htmlABA Lawlink http://www.abanet.org/lawlink

Law-RelatedAssociations

National Association o Legal Assistantshttp://www.nala.orgAssociation o Legal Administrators http://www.alanet.orgAmerican Association o Law Librarieshttp://www.aallnet.org

Marketing,Sales andBusinessNetworking

Business development in UShttp://www.legalsales.org/eatures/index.cmWebsite making or lawyers in UShttp://www.abanet.org/tech/ltrc/npbars.html

American Marketing Association http://www.marketingpower.com/content753.php

Source: LexisNexis

LPO_India

Documents