In the current context of the market, one of the main concerns of companies is to reduce costs while maintaining efficiency, quality, and profitability activity. In this way, companies can choose to turn to outsourcing one or more departments. Among the most frequently outsourced services are accounting and especially legal department.

The legal industry has experienced a global paradigm shift in recent years in the delivery model for legal services. This new model, known as legal process outsourcing or LPO, involves transferring the work of attorneys, legal advisers and other legal professionals to external vendors located domestically and overseas. Legal outsourcing is growing in popularity as law firms and corporate legal departments seek to minimize costs, increase flexibility and expand their in-house capabilities.

1. Cost Savings

One of the most significant advantages of outsourcing legal functions is cost savings. Organizations can reduce their cost structures through labor arbitrage – the wage differential between in-house legal personnel and outside vendors – to reap tremendous cost benefits.

2. Access to external talents

Outsourcing legal work to external vendors allows organizations to access high level talent and niche expertise that does not exist within the firm. For example, lot of companies lacking litigation support expertise may outsource certain aspects of litigation support such as coding and document review to niche providers. Access to external talent is particularly useful for every type of companies to fill gaps in internal competencies. LPO also allows domestic firms to tap into global expertise much easily.

3. Reduced Turnaround Time

The use of external personnel can expand internal bandwidth to reduce turnaround time for pressing legal projects. The use of a combination of LPO teams can also allow organizations to complete a project in a shorter time frame. For example, what internal is solved within at least one month, by outsourcing the legal department, the terms of completion can be shortened considerably. LPO teams can work continuously to your request to complete your project faster knowing in advance the estimated working time and delivery time.

4. Flexibility

Employing a combination of in-house and external talent allows law firms and organizations to tailor their capabilities in response to workload and client demands. Workflow challenges are particularly prevalent for small and mid-size firms. These firms may find it more difficult to spread variability due to a smaller number of attorneys, support staff and clients. Outsourcing legal work allows firms to quickly scale up for a case or project, leveling the playing field with larger firms. Flexible staffing also reduces firm overhead.