Legal Process Outsourcing (LPO) Market Size By Service (Contract Drafting, Compliance Assistance, E-Discovery, Review & Management, Patent Support, Litigation Support), By Location (Offshore, Onshore), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, Italy, France, Spain, Poland, Czech Republic, China, India, Japan, South Korea, Australia, Philippines, Brazil, Mexico, South Africa), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: Apr 2017 | Report ID: GMI179 | Authors: Ankita Bhutani, Pallavi Bhardwaj Report Format: PDF
(LPO) Legal Process Outsourcing Market size exceeded USD 3 billion in 2016 with over 35% CAGR estimation from 2017 to 2024.
U.S. LPO market size, by location, 2016 & 2024 (USD Million)
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The legal process outsourcing market is growing at a rapid rate due to the growing demand to minimize costs by law firms and corporate legal departments to increase flexibility and expand their in-house capabilities. With the rising concerns related to legal expenses in countries such as the U.S. and UK, corporate firms seek to outsource certain legal proceedings through their legal representatives to cut costs. In addition, cost saving is the major attraction for western firms outsourcing their legal work to countries such as India owing to the affordability, efficiency and availability of skilled personnel.
The LPO market size has gained significance in large enterprises, which have their own inhouse counsel and legal departments and is not only limited to law firms. These companies are seeking opportunities to secure their back-end services to provision their internal operations. This is a remarkable shift in the legal process outsourcing market, and determines how essential it is for organizations to evaluate their business processes, and recognize areas they need to outsource operations to confirm costs are minimized and process efficiencies are maximized.
Security concerns and breech of ethical codes are the major challenges which will hinder the LPO market growth. This is due to the concern of the companies regarding the transfer of confidential information while sending it to the providers. Furthermore, the hazards associated with the illegal practice of law has made various consumers uncomfortable about using LPO providers.
LPO Market, By Service
The e-discovery services market will grow significantly over the forecast timeline due to the rising demand from law firms to outsource activities which are less in value, in order to target tasks such as delivering tactical legal advice. Organizations are more inclined towards managing core responsibilities, and outsource transactional operations that do not necessitate high degree of expert knowledge.
Patent support service segment is anticipated to witness growing demand in the legal process outsourcing market due to the need to outsource qualitative tasks, such as IP litigation and proof-reading, which aids large organizations by releasing up their employees from such tedious tasks so that they can concentrate on high-value tasks.
LPO Market, By Location
The onshore legal process outsourcing market is anticipated to witness high growth over the future, as it is considered a comparatively safer alternative in comparison to outsourcing offshore. It offers benefits such as shared regulatory framework, which streamlines the business processes. It is a profitable option for organizations that desire working together with companies within the same country. Furthermore, subcontracting in the same country also delivers advantages such as shared regulatory framework.
The offshore LPO market will witness growth owing to the need to outsource legal activities to countries such as India, Philippines, and South Africa. This outsourcing is done due to the presence of large number of efficient lawyers whose pay scales are much lower than the ones in countries such as the U.S.
LPO Market, By Region
India legal process outsourcing market size will grow significantly from 2016 to 2024 due to the presence of numerous English speaking lawyers whose incomes are lesser than those of their U.S. based counterparts. Indian service providers have also worked to address the necessary requirements to target UK and U.S. based clients. Favorable government initiatives associated with the LPO market such as Foreign Direct Investment in 100% equity of the firm in LPO / BPO enables foreign companies to establish their subsidiaries as private limited companies with minimum liability over shared investment.
Competitive Market Share
Industry participants in legal process outsourcing (LPO) market include Integreon, Inc., UnitedLex Corporation, Elevate Services Inc., Pangea3 LLC, Axiom Law, etc. The players are focusing on offering higher-value services such as supporting compliance management. They are expanding their offerings beyond litigation and regulatory investigation support services to contract management to offer varied services to their customers. In addition, these industry participants concentrate on process, people and geographic capability and strategic alliances to gain prominence.
LPO Industry Background
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Several players are participating in frequent mergers and acquisitions and expanding their service offerings. The high cost associated with the carrying out of legal tasks is the prime factor propelling the legal process outsourcing market growth. Security concerns regarding the transfer of the information to the providers may inhibit the industry growth. The organizations are considering the risks associated with the transfer of information to offshore companies. The service providers are delivering personalized and flexible costs based on the size and type of legal engagement.
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