LegalEase is pleased to introduce our Legal Process Outsourcing Handbook, free for viewing and/or downloading here.
As increasing numbers of both in-house and firm-based counsel adopt new strategies to respond to the evolving legal marketplace, The LPO Handbook provides a one-stop resource to help you evaluate whether strategic use of LPO is an efficient addition to your business initiatives.
Showing posts with label LPO. Show all posts
Showing posts with label LPO. Show all posts
Monday, August 17, 2009
Saturday, June 06, 2009
Legal Information vs. Legal Advice
The unbundling of traditional legal offerings -- which is an emerging trend central to Richard Susskind's recent book The End of Lawyers -- has been a hot topic in these parts lately.
The idea of different legal services becoming available in new venues and formats is one that we're seeing manifest itself in a number of ways from web-based companies offering legal forms, legal facts, entreprenuerial start-up guidance, copyright filing, and more.
And it's happening in both the U.S. and the U.K.
In fact, the U.K.'s Legal Services Act 2007 is a national initiative providing a legislative framework to actually reform the way legal services in England and Wales are regulated and delivered.
The Act specifically allows legal services "to be provided under new business structures" with a stated goal of promoting "competition and innovation".
The BBC recently reported on this, highlighting that "future providers, including large retail brands, could seek a license to offer legal services."
The article includes opposing views, including an attorney who says the move "demonstrates utter contempt for the consumer of legal services. The solicitor profession faces being all but wiped out by a government seemingly intent on robbing the public of access to good quality, local legal advice."
Ah, but here is something to keep in mind: As we talk about the fragmenting of legal offerings, it's important to be consistent in distinguishing between legal information and legal advice.
In fact, it could be argued that the BBC's reporting fails to do this. Or, at the least, it allows for the interchanging of the terms.
The American Bar Association distinguishes between legal information and legal advice. Legal information is general, non case specific, and can be provided by anyone. Legal advice, on the other hand, is "provided by a trained lawyer who uses his or her knowledge of the law to tell you how the law applies to your specific circumstances."
When listening to all the voices on both sides of the conversation, it's important to keep the distinction in mind and remember that legal advice isn't going anywhere.
Legal experience, insight, and strategy aimed at an outcome will always be in demand. What is evolving, and will continue to evolve, is how the more rudimentary and "commoditizable" aspects of the law will be unbundled and delivered.
The idea of different legal services becoming available in new venues and formats is one that we're seeing manifest itself in a number of ways from web-based companies offering legal forms, legal facts, entreprenuerial start-up guidance, copyright filing, and more.
And it's happening in both the U.S. and the U.K.
In fact, the U.K.'s Legal Services Act 2007 is a national initiative providing a legislative framework to actually reform the way legal services in England and Wales are regulated and delivered.
The Act specifically allows legal services "to be provided under new business structures" with a stated goal of promoting "competition and innovation".
The BBC recently reported on this, highlighting that "future providers, including large retail brands, could seek a license to offer legal services."
The article includes opposing views, including an attorney who says the move "demonstrates utter contempt for the consumer of legal services. The solicitor profession faces being all but wiped out by a government seemingly intent on robbing the public of access to good quality, local legal advice."
Ah, but here is something to keep in mind: As we talk about the fragmenting of legal offerings, it's important to be consistent in distinguishing between legal information and legal advice.
In fact, it could be argued that the BBC's reporting fails to do this. Or, at the least, it allows for the interchanging of the terms.
The American Bar Association distinguishes between legal information and legal advice. Legal information is general, non case specific, and can be provided by anyone. Legal advice, on the other hand, is "provided by a trained lawyer who uses his or her knowledge of the law to tell you how the law applies to your specific circumstances."
When listening to all the voices on both sides of the conversation, it's important to keep the distinction in mind and remember that legal advice isn't going anywhere.
Legal experience, insight, and strategy aimed at an outcome will always be in demand. What is evolving, and will continue to evolve, is how the more rudimentary and "commoditizable" aspects of the law will be unbundled and delivered.
Friday, May 29, 2009
The Managing Onshore Attorney - Part II
Law.com's Legal Blog Watch summarizes a recent study of emerging trends for contract lawyers conducted by The Posse List. In regards to Legal Process Outsourcing, they write:
You can read the first part of our conversation here.
"Though firms are under pressure to cut costs, data security and quality of work are two key deterrents to sending projects to India. Still, Bufithis notes that "off-shoring is not going away." It's moving toward a blended approach, with a first pass at review in India followed by second review in the United States."Here is another acknowledgment that the blended onshore/offshore model provides the benefit of a second layer of quality control and oversight from the onshore attorneys, and it dovetails nicely with the second part of our conversation with Managing Onshore Attorney, Chris Crawford.
Q: Generally, what is the breakdown in terms of the percentage of work executed by the offshore attorneys and the percentage executed by the onshore staff?
A: “It can really vary. Depending on the complexity of the work, it ranges from 10% onshore to 90% onshore. The benefit to the client is that the cost does not change whether the work is performed by a
Q: What are the types of work that you have seen translate successfully to being outsourced?
Q: What are the educational backgrounds of the offshore attorneys?
A: “All Indian attorneys have graduated from an accredited Indian law school, which requires either three or five years of schooling, depending on the law degree obtained. We only hire those that have graduated within the top 10% of their class.”
Q: How are the attorneys trained once they join LegalEase?
A: “LegalEase has its own six month training program, designed by a
Q: How do you address ethical concerns, e.g. how do the off-shore attorneys ensure confidentiality and conflict checking?
A: “All attorneys working for LegalEase sign confidentiality agreements. In addition, most clients require that LegalEase employees sign confidentiality agreements before commencing work on a project. Regarding conflicts of interest, we have an internal conflict checking system to ensure that we do not undertake work that would present a potential conflict of interest with another client.”
Q: How do you guarantee client satisfaction?
A: “We have always provided our clients with a 100% satisfaction guarantee. If the client is for some reason dissatisfied, we only ask that they provide the reason for the dissatisfaction and give
You can read the first part of our conversation here.
Friday, May 22, 2009
The World Gets Flatter -- Virtual Law Firms
Another dispatch from the front line of the rapidly shifting landscape of legal outsourcing and offshoring.
Virtual law firms are not a new or particularly cutting-edge idea. A wikipedia page on virtual law firms notes that they have been around since 2004. And, if you think about it, even having a wikipedia page probably precludes any sort of "underground" status.
The ABA's Law Practice Today generally characterizes virtual law firms as having the following traits:
Some virtual law firms employ attorneys scattered throughout the U.S.. Other virtual law firms, like Rimon Law Group (a firm with a very creative and intriguing billing model that factors client satisfaction), manages to reduce overhead even further by including attorneys who live in locations with lower costs of living -- areas in the United States as well as other countries.
And this makes perfect sense as a business model.
Because virtual law firms employing U.S. attorneys located outside the U.S. are leveraging the exact same dynamic as Legal Process Outsourcing: Work is completed by qualified colleagues who live in areas with lower costs of living, and those savings in overhead translate to lower costs to the client.
An interesting element at play here is the distinction in terminology.
Whereas a network of U.S. attorneys living in different countries is a "virtual law firm", a network combining U.S. attorneys with attorneys trained and accredited in other countries is thought of as "offshoring".
As the lines between old guard legal paradigms and new, global legal paradigms blur, it is likely that the terminology will, too. So, when an LPO engages offshore attorneys to perform some of the more redundant legal processes (litigation support, legal research/writing, contract/document review, etc.), couldn't we just call them "virtual associates"?
Virtual law firms are not a new or particularly cutting-edge idea. A wikipedia page on virtual law firms notes that they have been around since 2004. And, if you think about it, even having a wikipedia page probably precludes any sort of "underground" status.
The ABA's Law Practice Today generally characterizes virtual law firms as having the following traits:
- A stable core group of attorneys
- Established collaborative relationships with other specialized law firms that possess expertise that’s occasionally needed
- Technologically linked infrastructure via appropriate computer and telecommunications systems
- Ability to expand and reduce personnel as needed
Some virtual law firms employ attorneys scattered throughout the U.S.. Other virtual law firms, like Rimon Law Group (a firm with a very creative and intriguing billing model that factors client satisfaction), manages to reduce overhead even further by including attorneys who live in locations with lower costs of living -- areas in the United States as well as other countries.
And this makes perfect sense as a business model.
Because virtual law firms employing U.S. attorneys located outside the U.S. are leveraging the exact same dynamic as Legal Process Outsourcing: Work is completed by qualified colleagues who live in areas with lower costs of living, and those savings in overhead translate to lower costs to the client.
An interesting element at play here is the distinction in terminology.
Whereas a network of U.S. attorneys living in different countries is a "virtual law firm", a network combining U.S. attorneys with attorneys trained and accredited in other countries is thought of as "offshoring".
As the lines between old guard legal paradigms and new, global legal paradigms blur, it is likely that the terminology will, too. So, when an LPO engages offshore attorneys to perform some of the more redundant legal processes (litigation support, legal research/writing, contract/document review, etc.), couldn't we just call them "virtual associates"?
Friday, May 15, 2009
The Onshore Attorney's Role in the Review Process
When United States attorneys evaluate the efficiencies and savings of outsourcing certain legal tasks, they find themselves weighing the merits of two different LPO business models: The entirely offshore model versus the blended onshore/offshore model.
While an entirely offshore model connects the client directly with the offshore office, the blended onshore/offshore model inserts a layer of United States based attorneys to work with the client and shepherd each project.
This layer of onshore managing attorneys serves a number of crucial functions, including project management, quality control, and as a liaison directly from one U.S. attorney to another.
LegalEase's managing onshore attorney, Chris Crawford, recently explained the organizational structure and the managing attorneys role in the workflow and review process. Here's an excerpt from that article.
When a client approaches an LPO with a blended onshore/offshore model, how is the work organized and what is the workflow process?
What is the review process?
While an entirely offshore model connects the client directly with the offshore office, the blended onshore/offshore model inserts a layer of United States based attorneys to work with the client and shepherd each project.
This layer of onshore managing attorneys serves a number of crucial functions, including project management, quality control, and as a liaison directly from one U.S. attorney to another.
LegalEase's managing onshore attorney, Chris Crawford, recently explained the organizational structure and the managing attorneys role in the workflow and review process. Here's an excerpt from that article.
When a client approaches an LPO with a blended onshore/offshore model, how is the work organized and what is the workflow process?
“Initially, the client will contact the U.S. office about a project. A U.S. based attorney will then get the client specifications for the project, including all facts, documents and directions needed to complete the project. The U.S. based attorney then reviews the project, doing preliminary research and drafting as necessary. He/she then assigns components of the project to the offshore attorneys with specific instructions for the completion of the project.”
What is the review process?
“The U.S. and offshore team work together to complete the project, much the same way an associate and a partner would work to complete a project at a law firm. There is a constant, open line of communication between the two offices for feedback and to answer any questions that may arise. Once the project is complete, a U.S. attorney gives it final review and approval for delivery.”
Friday, April 03, 2009
India Business Law Journal
There was a very comprehensive overview on the state of the Legal Process Outsourcing market in the March issue of the India Business Law Journal. Industry leaders from top LPO's were interviewed, including LegalEase Solution's CEO Tariq Akbar. Here are some of the highlights of the subjects addressed, as well as observations about the industry quoted from the article:
- The cost factor. "Corporations are no longer willing to pay the high fees that are traditionally associated with the review process,which accounts for around 60% of litigation costs."
- Process efficiencies. "Once a project is underway, clients see other benefits like process efficiencies, quality improvements."
- Climbing up the value chain. "Once clients are comfortable that the quality of outsourced work is not compromised, it allows them to transition significantly more work both in terms of value and quantity."
- Crisis-driven demand. "The events occurring in the global economy are unprecedented … they are forcing companies of all sizes in all industries to ensure that they are spending every penny wisely."
- Outsourcing decision makers. "The major decision makers are the end clients of the law firms – the corporate legal departments who now want a lesser burden on their resources."
Friday, March 20, 2009
Protecting Client Confidentialy through Personnel Management
We've discussed the tangible, hard-wired aspects of protecting client confidentiality through data security -- the systems an LPO needs to have in place to control data collection, as well as access and utilization.
The other aspect of protecting client confidentiality is a bit, well, squishier. It's not the binary, flow-chart dictated, password protected black and white of data systems. Instead, it is the softer science of personnel management and all that it entails -- personalities, histories, and motivations.
Softer, yes, but no less demanding and integral to the ethical obligation of ensuring confidentiality. So, to fully realize the duty of confidentiality, an LPO needs to compliment data integrity with a multi-faceted approach to personnel management.
Employee Vetting - The first step, clearly, is the completion of a thorough background and reference checks, as well as confirmation of professional standing.
Contractual Provisions - Each employee - onshore and offshore - must be subject to Confidentiality and Non-Disclosure Agreements.
Education and Training - Admission to the Bar in most jurisdictions is contingent on passing the Multistate Professional Responsibility Examination, so it reasons to follow that offshore attorneys should be proficient in the same model rules.
Business to Business - An additional mechanism that can be employed is an individual confidentiality agreement between the LPO and counsel.The ABA strongly advises these agreements, and the Association of the Bar of the City of New York (Ethics Opinion 2006-3) recommends “contractual provisions addressing confidentiality and remedies in the event of breach, and periodic reminders regarding confidentiality.”
Corporate Culture - Another consideration for an LPO is cultivating a corporate culture that puts a premium on low attrition. A stable work force to some degree reflects company loyalty, and it can mitigate confidentiality risks by minimizing the number of former employees in circulation
Just like data systems need ongoing QA efforts, personnel protocols also need periodic reinforcement to be maximized. Personnel management within an LPO -- in the service of protecting client confidentiality -- must be understood to be an continual process.
The other aspect of protecting client confidentiality is a bit, well, squishier. It's not the binary, flow-chart dictated, password protected black and white of data systems. Instead, it is the softer science of personnel management and all that it entails -- personalities, histories, and motivations.
Softer, yes, but no less demanding and integral to the ethical obligation of ensuring confidentiality. So, to fully realize the duty of confidentiality, an LPO needs to compliment data integrity with a multi-faceted approach to personnel management.
Employee Vetting - The first step, clearly, is the completion of a thorough background and reference checks, as well as confirmation of professional standing.
Contractual Provisions - Each employee - onshore and offshore - must be subject to Confidentiality and Non-Disclosure Agreements.
Education and Training - Admission to the Bar in most jurisdictions is contingent on passing the Multistate Professional Responsibility Examination, so it reasons to follow that offshore attorneys should be proficient in the same model rules.
Business to Business - An additional mechanism that can be employed is an individual confidentiality agreement between the LPO and counsel.The ABA strongly advises these agreements, and the Association of the Bar of the City of New York (Ethics Opinion 2006-3) recommends “contractual provisions addressing confidentiality and remedies in the event of breach, and periodic reminders regarding confidentiality.”
Corporate Culture - Another consideration for an LPO is cultivating a corporate culture that puts a premium on low attrition. A stable work force to some degree reflects company loyalty, and it can mitigate confidentiality risks by minimizing the number of former employees in circulation
Just like data systems need ongoing QA efforts, personnel protocols also need periodic reinforcement to be maximized. Personnel management within an LPO -- in the service of protecting client confidentiality -- must be understood to be an continual process.
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