Legal Process Outsourcing provides a way to put more hours into a day without investing any more personal time, and a way to reduce billable rates to become more competitive in a frighteningly competitive market.
Lawyers have used outsourcing for certain types of projects—think appellate printing services—for decades. Now think bigger. Much, much bigger. Think: let someone else research and write that brief, because it is cost effective and leaves your time to be better spent elsewhere, like developing the strategy for the negotiations.
Free yourself to focus on what you are really paid to do: think strategically.
With client pressure to reduce legal fees unlikely to reduce any time soon, practitioners need to remain competitive by cutting their time investment in tasks that can be performed more efficiently by others. The law firm model has traditionally used the time of more junior lawyers at the firm to achieve this. But that doesn't cut overheads, or manage the problem of less than 100% utilisation of those lawyers, as we've written about in a previous blog.
Using LPOs provides a solution to both problems. Not one cent is wasted on paying for time the LPO does not invest in the project. When the project is finished, there is no further obligation to the LPO until you need their services again. The firm or lawyer might still pass on the cost to the client at a higher (yet of course reasonable) rate, making further profit on the investment. Many clients have twigged to the law firm as LPO / client intermediary, and are in fact suggesting that firms use LPOs to efficiently manage their legal costs. And as we've seen, many firms are aggressively marketing their LPO relatives as a value add for clients.
Legal Process Outsourcing does not end with mere “lawyering” tasks. Billing, bookkeeping, secretarial, paralegal, reception, marketing and almost everything bar putting your thumb on your smart phone can be outsourced. Outsourcing provides the benefits of adding additional “staff” with no overheads of equipment, office space, supplies, health insurance or many taxes. Someone in South Africa, India or indeed Australia can be answering telephones and drafting your correspondence at a rate far less than for the same tasks undertaken by internal resources.
At Crowd & Co, we’re focused on providing our marketplace members with resources to work more efficiently. Some of you may have read in last week's Australian Financial Review, we have formed an alliance with Exigent to bring these services to you. For those of you with an AFR subscription, you can read the article here.
What to know more about our arrangement with Exigent? Drop the team an email at email@example.com