Legal Process Outsourcing (LPO) Market size is set to surpass USD 30 billion by 2027, according to a new research report by Global Market Insights Inc.
The constantly changing global regulatory landscape is boosting the legal process outsourcing services industry growth. Rising number of organizations outsourcing their legal work to acquire professional services offered by dedicated law firms is likely to boost the market demand. The frequently changing laws and international trade regulations encourage organizations to outsource their legal tasks to ensure compliance with the laws. Outsourcing also relieves excess stress on in-house legal departments, enabling the company to focus on core strategies and business operations. With legal process outsourcing service providers offering expert solutions, law firms and organizations are assured of high-quality services at affordable rates.
The coronavirus (COVID-19) pandemic hindered the legal process outsourcing market growth in 2020 owing to the lockdowns imposed by government organizations globally. International businesses halted their expansion plans due to restrictions imposed on travel. The industry also witnessed a temporary dip propelled by low demand from corporate organizations, which attributed to the stagnancy in new product launches and international trade. The market growth was also hindered by a decline in the number of new recruitments coupled with a reduced number of mergers & acquisitions.
The resumption of industrial activities following relaxations in the lockdowns will support the market revenue in 2021. Changing regulations in the wake of the pandemic is poised to drive the demand for legal process outsourcing services.
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The high demand for patent support services to launch innovative products
Growing concerns over patent infringement over recent years is boosting the legal process outsourcing market growth. Organizations will outsource their legal work concerning patent drafting, filing & prosecution to third-party LPO firms to ensure accuracy and avoid unnecessary litigations over IP rights. Several laws associated with patent infringement are passed to protect inventor or organization rights. Legal process outsourcing providers focus on hiring lawyers specializing in patent-related issues to offer high-quality services to large multinational organizations. An increasing number of organizations across several industry verticals are focusing on launching innovative solutions to sustain the growing competition. This factor will increase the demand for patent support services, in turn, propelling the market growth.
Browse key industry insights spread across 230 pages with 174 market data tables and 34 figures & charts from the report, “Legal Process Outsourcing (LPO) Market Size By Service (Contract Drafting, Compliance Assistance, E-Discovery, Review & Management, Patent Support, Litigation Support), By Location (Offshore, Onshore), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The high cost of hiring legal services in several countries is supporting the offshore legal process outsourcing market demand
Several organizations and law firms in countries including the UK and the U.S. are outsourcing their legal work to LPO service providers in countries such as India and the Philippines led by the high cost of legal services charged by onshore firms. Outsourcing helps them to procure high-quality legal process outsourcing services offered by renowned companies at extremely low costs compared to native law firms. This enables considerable cost savings while also allowing companies to function round the clock impelled by the significant difference in the time zones.
The use of external staff also expands internal bandwidth to reduce turnaround time for demanding legal projects. The large population in countries such as India and the Philippines that possess fluent English language skills ensures that high-quality legal services are offered.
The rising number of SMEs in Europe to propel the demand for LPO services
The Europe legal process outsourcing market size will expand at more than 16% CAGR through 2027 driven by the sharp rise in the number of SMEs backed by favorable government initiatives in several countries including Germany, the UK, and France. SMEs form around 99.8% of all non-financial companies in the EU, generating 56.4% of the added value and providing 66.6% of the jobs. The market will witness an increasing demand for LPO services to help SMEs comply with the stringent regulatory landscape in Europe. SMEs will outsource their legal work to avoid unnecessary litigations and heavy fines. Although offshore outsourcing is popular on account of budgetary advantages, several companies will prefer onshore legal process outsourcing services due to language barriers and risks associated with cross-border data transfer.
Focus on integrating advanced technologies forms a key strategy amongst players
Players operating in the market are focusing on incorporating advanced digital technologies to offer enhanced and more precise legal service offerings. For instance, in March 2020, Exigent updated its contract management software to include AI-based contextual search and auto-extraction for increased accuracy, speed to data, and business impact. The company’s AI auto-extraction tool is powered by a machine learning engine set up and trained by legal professionals, data scientists & financial experts, creating faster and more precise outcomes.
Prominent legal process outsourcing market players include Acumen Legal Services Pvt. Ltd., Clairvolex Knowledge Processes Pvt. Ltd., ADEC Innovation, BODHI Global Solutions, Amstar Litigation Support, Cobra Legal Solutions, LLC, Elevate Services Inc., Evalueserve SEZ, Infosys Limited, Kensium BPO, Datascribe Technologies Inc., LawScribe, Inc., Morae Global Corporation, Pangea3, Lexplosion Solutions Pvt. Ltd., and Wipro Limited.