Thursday, April 27, 2006

Legal Outsourcing story in the Deccan Herald featuring LegalEase Solutions

Legal outsourcing
Currently legal work outsourced from the US is said to provide 12,000 jobs but by 2008, the sector is likely to require 29,000 lawyers, most of them in India with its tradition of English medium law education.

 
People donning the black coat need no longer sweat it out in the noisy corridors of Indian courts in summers any more. For, a lot of jobs are awaiting them in the cool, chrome glass-panelled ITES offices in Indian metropolises. As legal outsourcing is just about wriggling out of the clutches of the aggressive anti-outsourcing rabble rousers in the West, students trained in the Indian law schools can justifiably aspire to be counted among the white-collared workers with attractive pay packets. The budding sector is all poised to free several legal brains from legal sweatshops dotting the environs of the courts that do hone their legal skills but yield little by way of wages.

Demand for legal skills

Legal skills of Indians are now up for uploading. The law firms in the United States are getting increasingly aware that they could maximise their efficiency by sending the back office work to India. It would thus not only cut expenses, but possibly save on time which could thereby be utilised for actual court appearances, face-to-face negotiations or development of clientele.

Gradually, American law firms are discovering the worth of outsourcing work to firms in Mumbai, Delhi, Bangalore and Hyderabad. Leading firms like Pangea3, LegalEase and Evalueserve are employing a battery of lawyers in India. Currently legal work outsourced from the US is said to provide 12,000 jobs but by 2008, the sector is likely to require 29,000 lawyers, most of them in India with its tradition of English medium law education. Indian lawyers are seen capable of servicing for the US legal firms without any additional training as the judicial system on either end is rooted in British common law. Law firms here are found eminently suitable in handling documents pertaining to scrutiny of contracts, sale deeds, patent registration etc. Even in civil matters, lawyers can execute divorce suits, property related litigation, write business contracts, prepare pleadings etc.

Just look at the following sampling:

Roamware Inc., in San Jose, California, engaged Indian software professionals and lawyers to prepare a database of key terms in nearly 200 legal documents of the company for monitoring contract compliance. Bill was just around $ 5000 while it might have been called to shell down $ 60,000 by an US based legal/IT firm.

DirectoryM, an online marketing firm based in Cambridge, Massachusetts, uses Indian lawyers for research in litigation. David Kahan, General Counsel for the company says the cost gets reduced by about 90 per cent.

QuisLex employs 12 lawyers in Hyderabad which analysis state to state Insurance regulations. Solan Schwab, a solo practitioner, feels that by outsourcing the work, he spends merely a third of what he would spend on hiring a full-time legal attorney.

The legal outsourcing made a very small beginning in 1995 when I&A International started an office in Hyderabad merely to digitise legal documents and create search databases. Strictly speaking, it was a techno-coolie job, even less arduous than a clerk’s assignment. But now it has begun hiring lawyers to review documents stemming from lawsuits. Now major firms such as Du Pont Co. use the Indian law firms to draft patent applications. And Du Pont makes no bones about saying that, although not all firms would declare that their documents undergo scrutiny in various Indian firms, given the negative connotation the word has in the US.

It’s about saving time

But for American firms it is not saving the money alone. It also saves on time. What a law firm would require a day for review of a legal document, a Bangalore or Hyderabad firm would do all through the night and present the vendor in Chicago or New Jersey a neat file the next morning. Says Tariq Akbar, CEO of LegalEase Solutions LLC, based in Canton, Michigan: We, while offshoring two-thirds of work to Chennai or Cochin work virtually 24 hours. It enables us to take large projects. Hiring also enables to cope up with temporarily increased load of work’.

Legal outsourcing liberates them from desk work. It will thus enable even the small firms to take up large amount of actual litigational assignments. Companies like Lawyers.com and Lexadigm depend exclusively on Indian lawyers to do legal analysis. Others use them for conflict management cases and reviewing legal databases. Intellevate, which has offices in Bangalore and Noida receive invention description. The employees here research if the invention can be patented by going into databases of proprietary rights. Law firms here scan and upload a document on an intranet site which is downloaded in India. Patent application investigation services carry a premium. Indian lawyers can comb through American patent databases to find evidences and documents.

Be it lawsuits or patent registration, confidentiality of the work and the document are key elements in the assignments. When papers are outsourced, companies risk letting out the secrets. But advocates of outsourcing dispel such apprehensions and maintain that such risks are associated with even coding, photocopying of the documents within the United States.

M A Siraj

Tuesday, April 25, 2006

Legal Services-The Mass-piloting Stage

Legal Services - The Mass-piloting Stage

The concept of global services delivery is high among multinational law firms. Even smaller firms are trying it out. But for the time being, everyone seems to be doing just that - trying it out

by Shyamanuja Das

Global Services

Liberal democracies are obsessed with fairness and justice. As societies evolve, the challenge to ensure justice becomes more and more complex. In a few countries, that challenge is tackled by newer legislations, and implemented by the judiciary, making the judicial system less flexible but simple. But in many others, judiciary evolves independently, drawing on opinion and historical precedents, and is only supported by legislature. While that makes the system respond to the changing needs of the society more effectively, the delivery of justice becomes far more complicated. This system, popularly called the English Common Law System, owing to its origin, is followed by many larger democracies such as the U.S.A., India and U.K.
In countries such as India, that complexity has resulted in delays in judicial processes. In fast-moving nations like the U.S.A, where delay is not an option, it has led to steep rise in cost of legal services. In 2005, of the total $250 billion spent on legal services globally, the U.S.A. alone accounted for $170 billion, according to Forrester Research.
The $170 billion U.S. legal-services industry employed 1.5 million people in 2004, according to calculations based on information available from the U.S. Bureau of Labor Statistics (BLS). Two-thirds of these jobs were in the private sector.

Getting the Numbers Right

Since almost all global-delivery initiatives are driven primarily by labor arbitrage, at least initially, and since many of these services are priced on a time-and-materials basis, quite a few legal job functions are eligible.

Of course, not all jobs can be executed offshore. The category of jobs (See Table 1) that can theoretically be offshored directly include law clerks, paralegal and legal assistants and part of the legal secretaries. Components of some other jobs — including that of researchers and lawyers — can also be done offshore, but that requires careful separation of activities.
According to Forrester, the “offshoreable” legal-services market is about 65% of the total market in revenue terms. According to the firm, the market potential for globally-delivered legal services is $111 billion, out of the total of $170 billion.

That is a theoretical number, however. In practice, a small fraction of that number has actually gone offshore. According to a recent report by ValueNotes, an India-based research firm, the current market size of legal offshoring to India — which, together with the Philippines, accounts for a major chunk of offshored legal services — is $61 million. And the total number of employees engaged in delivering the services is not more than 1,000. NASSCOM — the India’s software and services association — is even more conservative and puts the number at 600–700 workers.

A study of 20 legal services providers by Global Services suggests that the previous estimates are low — there are approximately 2,000 legal-services delivery workers.

And Getting the Definitions Right

Legal Process Outsourcing (LPO) is a vague phrase. Coined primarily by the supplier community, it includes everything from highly specialized legal work such as draft patent filings to highly repetitive, mechanical work like coding of legal documents for electronic storage.
While most larger service providers do include legal-applications coding as part of legal BPO, a significant part of that work performed by smaller companies based largely in the southern Indian cities of Chennai and Coimbatore (that combine it with other similar work in healthcare and insurance domain) never get captured in market studies due to them being at the two extremes of the offshore BPO price band. While the coding type of work fetches an average of $7–$8 and can go down to even four U.S. dollar per hour, a high-end patent research and drafting may be billed at anywhere between $80–$120 per hour, or for full-time employee-based pricing anywhere between $30,000–$90,000.

Making a Market

Many legal service providers consider their clients — the law firms — to be “extremely conservative.” The figures, though, suggest another story. The combined client base (law firms only) of all the legal-services providers that responded to our questionnaire stands close to 400. Even assuming an overlap on the higher side of 50%, that is still a large number.
For an industry that is just about three years old, that number is unusually high; more so, if you consider the small size of the industry and relatively smaller employment levels. “It just proves that law firms of all size have taken the plunge,” says the CEO of a company, which has one of the top American law firms among its clients.


Job Categories

  • Number ofJobs in 2004
    Median AnnualSalary ($)
    Arbitrators, mediators, conciliators
    5,200
    54,760
    Administration law judges, adjudicators, hearing officers
    16,000
    68,930
    Court reporters
    18,000
    42,920
    Judges, magistrates and magistrate judges
    27,000
    93,070
    Law clerks
    51,000
    NA
    Paralegal and legal assistants
    224,000
    37,870(Private only)
    Lawyers
    735,000
    126,250(Corporations)


    99,580(Law firms/private)
    Law clerks
    51,000
    NA
    Title examiners, abstractors and searchers
    61,000
    NA
    Legal secretaries
    272,000
    36,270
    TOTAL
    1,460,200

    SOURCE: U.S. BUREAU OF LABOR STATISTICS





    What is being Offshored?

Drafting of legal documents



Reviewing of drafts



Preparing summaries of case histories



Preparation of trials



Legal research



Litigation support



Patent research



Drafting of contracts, agreements, briefs



Drafting Wills, immigration law



Corporate transactional services



Legal coding (Objective, subjective)



Review, proof reading



Document management



Legal transcription.

While on one end, top law firms like Milbank, Tweed, Hadley & McCloy; Baker & McKenzie; Allen & Overy; and patent firm Finnegan Henderson have offshored part of their legal and paralegal work to India, many smaller firms have followed suit. “All our clients are medium and small law firms,” says Gururaj Potnis, Head, Legal Services, Manthan Services, Bangalore.
“Despite perceived challenges such as quality, confidentiality and security, law firms have offshored primarily to take advantage of diversity in talent base, time difference and ability to scale up and down as required,” says Puneet Mohey, CEO, Lexadigm Solutions LLC, a legal-services firm headquartered in Grandville, Michigan with delivery facilities in Gurgaon, near New Delhi.

The field has momentum. “This is anything but conservative, considering the fact that the real cost pressure that has acted as the major catalyst for offshoring in most industries is still not there in legal services,” adds Manthan’s Potnis.

Most service providers who complain that their clients are conservative, however, agree that the conservatism in this industry is not because of the usual reasons — ignorance, unwillingness to change and fear of backlash that marks many other industries. It is due to extraordinary levels of concerns about security, and a stricter due diligence process about protecting clients’ data.

While some of the work is fairly high value, a large percentage of the work is still in or just beyond the pilot stage. This explains why an industry serving so many customers employs so few people and garners modest revenue. The industry is still largely in a testing or mass-piloting stage.

Legal BPO Vendors
Company, HQ(Website)

Service Areas

Total Clients(Law firms)

Total Employees(Lawyers)

DeliveryFacilities
Atlas Legal Research, Dallas (www.atlaslegal.com)

Legal research

120 (95)

15 (14)

Bangalore, India
Brickwork Consultancy Services Bangalore, India (www.brickworkindia.com)

Litigation support and electronic discovery, legal drafting/revising of documents, legal research

6 (4)

5 (3)

Bangalore, India
eCase Solutions, Ridgewood (www.ecaseinc.com)

Litigation support and electronic discovery, corporate legal function, legal drafting/revising of documents, legal research and patent research

10 (4)

12 (5)

Gurgaon, India
Genpact, Gurgaon, India (www.genpact.com)

Paralegal, litigation support and electronic discovery, corporate legal function, legal drafting/revising of documents, legal research and patent research

6 (NA)

25 (10)

Gurgaon and Hyderabad, India
Integreon, New York (www.integreon.com)

Paralegal, litigation support and electronic discovery, corporate legal function, legal drafting/revising of documents, legal research and patent research

23 (18)

105 (30)

New York and Los Angeles, Mumbai, India
Intellevate*, Minneapolis (www.intellevate.com)

Paralegal and patent research

87 (62)

127 (22)

Minneapolis, Minnesota and Noida, India
Lawwave, New York City (www.lawwave.com)

Paralegal, litigation support and electronic discovery, corporate legal function, legal drafting/revising of documents, legal research and patent research

10 (6)

25 (10)

New York and Chennai, India
LegalEase Solutions, Detroit (www.lgles.com)



33 (30)

14 (12)

Detroit and Cochin, India
Lexadigm Solutions, Grandville (www.lexadigm.com)

Litigation support and electronic discovery, corporate legal function, legal drafting/revising legal function, legal drafting/revising of documents, legal research and patent research

250 (200)

20 (15)

Gurgaon, India, Grandville, Philadelphia, Columbus
Lexwerx*, London (www.lexwerx.com)

Paralegal, litigation support and electronic discovery, corporate legal function and legal drafting

1 (1)

2 (2)


Manthan Services, Bangalore, India (www.manthanservices.com)

Paralegal, litigation support and electronic discovery, legal drafting/revising of documents, legal research and patent research

22 (18)

120 (80)

Bangalore, India
Mindcrest, Chicago (www.mindcrest.com)

Litigation support and electronic discovery, corporate legal function, legal drafting

15 (4)

45 (43)


OfficeTiger, New York (www.officetiger.com)

Paralegal, legal transaction support services, legal drafting/revising of documents, legal research and patent research

9 (5)

550 (60)

Chennai, India and Manila
Prolifus, New Delhi, India (www.prolifus.com)

Paralegal, litigation support and electronic discovery, legal drafting/revising of documents, legal research and patent research

12 (8)

28 (10)

New Delhi, India
Quislex, New York (www.quislex.com)

Litigation support and electronic discovery, corporate legal function, legal drafting/revising of documents and legal research

18 (8)

35 (32)

Hyderabad, India
SPI, New York(www.spi-bpo.com)

Paralegal, litigation support and electronic discovery

105 (50)

700+ (15)

Texas, Metro Manila and Pondicherry, India
Variante Global, New York (www.varianteglobal.com)

Paralegal, litigation support and electronic discovery, corporate legal function, legal drafting/revising of documents, legal research and patent research

30+(around 20)

40 (20)

Gurgaon, India
* Captive operations

Note: Total clients include corporate legal departments

SOURCE: COMPANIES



Some Law Firms that have Offshored


Finnegan Henderson



Milbank, Tweed, Hadley & McCloy



Allen & Overy (My source)



Schwegman, Lundberg, Woessner and Kluth



Kelley Drye & Warren



Eversheds



Baker & McKenzie



Hammonds Direct



Stites & Harbison


BJ Macfaralne & Co



Bickel & Brewer.


This path of evolution is characteristic of the risk-averse legal-services industry. Most other industries have seen a few champions that have pioneered the model while others have followed. In legal services, even smaller firms, that have vague ideas about global services delivery, do not want to miss the bus. “Some customers think that these complex processes can be performed offshore with minimal investment in training and selection of staff,” says Liam Brown, CEO, Integreon, NY, one of the biggest offshore legal-services firms with delivery facilities at Mumbai, India. “There are others who are too conservative with an it-can-never-be-done-in-India attitude. You try to find customers somewhere in the middle, who are open to leveraging India and who also take the time to really understand what can be done, how quickly and what investment needs to be made in process mapping, selecting the right staff and training to get there.”


Some law firms have understood these realities a lot better than others. The small and nascent legal-services market has its own captives. In fact, Dallas, Texas-based Bickel & Brewer, that is widely acknowledged to have pioneered the India-offshoring model way back in 1995, had started as a captive. Since then, it has spun off that subsidiary to an independent company called Imaging & Abstract International, based in Hyderabad, India. Others who have followed this model include London-based BJ Macfarlane & Co, which has a subsidiary called Lexwerx Ltd. in New Delhi; and Schwegman, Lundberg, Woessner and Kluth, PA, a Minneapolis, Minnesota-based patent firm that has a subsidiary called Intellevate in Noida near New Delhi. Today, Intellevate is clearly the leader among offshore-services firms providing patent research. This model has its own challenges. Most law firms, unlike other companies in different industries, still do not know how to do business in India, as foreign law firms are not allowed to operate directly in India. “The challenges of starting and operating a business in India can be a challenge,” says Steve Schley, VP, Sales and Marketing, Intellevate.

While all the vendors serve both law firms as well as corporations, law firms clearly lead, both in terms of actual work offshored and mindshare, though there are companies like Genpact, the erstwhile GE subsidiary, that does work on behalf of corporate legal clients. Many technology companies like Microsoft and Cisco work with Indian firms to do patent research — so do some pharma companies.

Half-filled or Half-empty?

With merely 1,000–2,000 workers and modest revenues between $60–$70 million, is legal-services offshoring a classic case of much ado about nothing? Or is it that with 200 odd law firms trying it out, offshoring could change the way the domestic legal-services industry operates forever?

Unlike many other industries — like technology— legal services is still way behind what the analysts like to call the “threshold.” Offshoring in legal services is astonishingly widespread; but it is not even knee-deep.

Tuesday, April 18, 2006

Legal Outsourcing firm comes to Livonia, Michigan

Legal outsourcing firm comes to LivoniaBY DAN WEST STAFF WRITER

A new Livonia company is using resources in India and the United States to help lawyers write briefs and conduct legal research.

LegalEase Solutions is an attorney-support enterprise that enables lawyers to outsource time-consuming tasks. Partners Tariq Hafeez, an attorney, and Tariq Akbar, with an engineering and business background, hope their business will flourish with the forecasted growth of such legal services.

"We're not competition for attorneys, we're a support system for attorneys and work only for them," said Hafeez, who once worked for Michigan Attorney General Mike Cox.

"I know outsourcing is a bad word to some, especially here in Michigan, but legal outsourcing is different," Hafeez, 28, added. "We're helping attorneys in this country do more, increase their client capacity and increase their business."

The one-year-old company relocated from their homes in Canton to a Livonia office three months ago in the Five Mile-Farmington area.

The duo, who have been friends for 15 years and both have family in India, coordinate a team of seven full-time, India-based attorneys and six contracted U.S.-based attorneys for the outsourced legal tasks. With their staffs on opposite ends of the planet, this enables LegalEase Solutions to staff a 24-hour work force. So far, the company has handled tasks for 33 clients in 12 states.

The company's primary services include legal research and writing, pre-litigation support, preparation of trial and appellate-level pleadings and briefs, documentary review, discovery and patent services.

"We have bright attorneys who offer convenience and quality," Akbar, 30, said. "We can hit the ground running, with little direction, and turnaround these tasks in a short period of time and save our clients hundreds of hours of work."

So far, LegalEase Solutions primarily works with small law offices. The company's contract work enables these firms to save on the expense of hiring a full-time associate.

"We just help them out as they need us," Hafeez said. "They only have to pay for services as they need them."

The duo hopes to grow their business by networking at attorney conferences across the country, contacts via their Web site (www.lgles.com) and by advertising in legal publications.
They also lean on their clients to promote them through word of mouth.

"We have to nurture these relationships to grow," Akbar said. "Building that trust with our clients will help us do that."

Thursday, April 06, 2006

Deposition Summaries: LegalEase meets an almost impossible deadline

LegalEase was recently asked to summarize over 4500 pages of deposition summaries relating to an upcoming trial in a matter of 3 days. The case, involving a breach of contract between an automotive supplier and a solvent company, included depositions of over 30 witnesses.

LegalEase quickly assembled a 24-hour workforce to complete the summarization project within the client’s time frame. The deposition summaries were delivered to the client on time, and the client realized a cost savings of over $10,000.

Do you have an E-Discovery and Document Review Plan?

Do you have an E-Discovery and Document Review plan? Let LegalEase help formulate and implement a customized E-discovery plan for you.

The combination of using offshore discovery attorneys and the ability to work around the clock, gives LegalEase the advantage at delivering high quality review services in a fraction of the time and at a much lower cost than standard review methods.

Today companies are faced with a new world of discoverable information – email messages, word processing documents, portable devices, spreadsheets, and a multitude of other types of electronic data and media. 10 years ago, the practice of electronic discovery was uncommon. Nowadays, electronic discovery takes place in all forms of litigation and business matters.

LegalEase specializes in electronic and paper discovery, assisting attorneys and businesses with the collection, organization and preparation of data for review and analysis in legal matters, regulatory filings, and government investigations. LegalEase leverages the most powerful document suppression software with the cost-savings of outsourced professional document review. The result is an accurate, lean and efficient review of electronic information.

LegalEase delivers efficient and cost-effective electronic review, production and litigation support without the expensive overhead of large law firms. Our business model is focused on providing an efficient and dependable service to the client using cutting-edge technology, well trained staff and the proven benefit of a joint onshore/offshore discovery attorney team.

With the joint team, we are able to have experienced discovery attorneys working in India and the U.S. The joint team gives clients a 24 hour work force to meet even the toughest deadlines. Moreover the combination of using offshore discovery attorneys and the ability to work around the clock, gives LegalEase the advantage at delivering high quality review services in a fraction of the time and at a much lower cost than standard review methods.