The global market of Legal Process Outsourcing (LPO) was estimated to be USD 13.2 Bn in 2022. And the expectations are to reach USD 134.7 Bn by 2032, growing at a CAGR of 29.6% from 2023 to 2032, according to a report published by Market.us. Legal firms in Asia may have a significant role to play in the matter.
The value proposition of LPO service providers:
Legal process outsourcing (LPO) is the practice of sourcing legal functions to a third-party service provider. LPO can do this to save money and share knowledge. According to the report, “Legal process outsourcing is the practice of outsourcing legal functions to a third-party service provider. The main purpose of this is to save money and share knowledge.
This is where legal firms in Asia come into existence. It may transfer several legal services from internal departments to external firms, local lawyers, or paraprofessionals. Asia Pacific influences the market with more than half of the market share, as LPO is a popular option for countries like the Philippines and India, and they are one of the best off-shore LPO destinations. A significant portion of the business generated off-shore in India, South Africa, and the Philippines comes from law firms in the developed markets of the US or UK. Due to the increasing legal industry in North America, many US firms prefer outsourcing constant legal activities.”
The report also outlines, “It is possible to save a lot of money by outsourcing legal processes. Instead of using corporate resources, they can expand certain legal services to local lawyers or paralegals. The economic environment, increased urbanization, and better use of technology are some of the reasons for the rapid rise in legal process outsourcing. In addition, infrastructure costs in countries such as South Africa, the Philippines, and India are much lower. It is in comparison to those in developed countries such as the US and the UK. The chances may impact the market growth firmly. However, in the past few years, many legal process outsourcing companies discovered that their infrastructure needs access or better equipment to shift to work-from-home.
Over the next few years, cost-saving, scalability, and flexibility will drive the market provided by outsourced legal services by legal firms in Asia. The type of service and the degree of it are what determine how much savings you make. The market is creating new opportunities due to expanding demand for contracts, letters, meeting minutes, and agreements. Companies must adhere to industry standards. It is due to strict cyber, tax, and thoughtful property laws in many countries, which is driving the market’s growth. The legal industry has been profoundly transformed by technology. It also includes live streaming of court proceedings and advance client management systems. Rapid technological advances have made it possible for the legal profession to change the way they operate entire court systems.”
According to the report details, ” Cost saving and changes in service levels are the key drivers of the LPO market. LPO also allows legal firms in Asia to outsource lower-value activities while focusing their internal manpower on high-value activities. This allows clients to serve their ad-hoc needs better. LPO frees the in-house legal department from constant legal work and allows them to concentrate on providing strategic and smart advice.”
Key LPO service providers:
Companies that are dominating the market are Clairvolex, Clutch Group, Cobra Legal Solutions LLC, CPA Global Ltd., Evalueserve, Exigent, Infosys Ltd., Integreon Managed Solutions Inc., Legal Advantage LLC, Lex Outsourcing, Lexplosion Solutions Pvt. Ltd., Lexsphere Pvt. Ltd., Mindcrest Inc., Pangea3, QuisLex Inc., UnitedLex, etc. However, industry players often have a physical presence in the US and delivery centers in countries like India and the Philippines. LPO providers can be classified based on the services they offer. All in all, this includes full spectrum LPO providers, KPO providers, and legal support service providers.
The synopsis and link to the full study can be accessed here.