The Global Market for Legal Process Outsourcing is Projected to Reach US$8.7 Billion by 2022

Focus on Cost Reduction & Supplementary Capacity for Unanticipated Legal Needs Drives Adoption of Legal Process Outsourcing, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Legal Process Outsourcing (LPO) market. The global market for Legal Process Outsourcing is projected to reach US$8.7 billion by 2022, driven by the growing need among enterprises to increase operational efficiency, reduce costs, and increase flexibility and scalability.

The legal process outsourcing (LPO) phenomenon, which gained momentum towards the end of the twentieth century, transformed the way of conducting legal businesses. Also referred to as legal services off-shoring and legal process off-shoring, LPO is the practice of outsourcing paralegal, administration and basic legal support services to a vendor that holds expertise in the field. LPOs generally involve relocation of legal services to cost-effective markets with skilled and specialized work force in order to reduce costs and minimize losses. Companies are leveraging LPO to achieve cost savings, enhance service levels, focus in-house workforce on core workloads, and create supplementary capacity for unanticipated legal needs. Besides cost reduction, outsourcing legal processes enable organization to maintain a lean workforce and have access to advanced technology and local expertise in other nations.

Currently, LPO is the fastest growing sub-sector under the Knowledge Process Outsourcing category. The concept of LPO is gaining momentum due to instability in global economy and the resulting need to reduce costs along with government-driven market liberalization and increasing pricing pressure from clients. Apart from supportive government policies, growth in the LPO market is also propelled by increasing awareness among general public and counsels. In addition, technology applications like offering secure enterprise-class software with features including collaboration, document management and portal website present new opportunities for vendors. One of the latest trends in the LPO market is increasing focus on predictive coding that is used in document review and e-discovery. The integration of the technique allows companies to reduce costs related to e-discovery as well as identify and produce electronically-stored information. E-Discovery and patent support are the most widely outsourced legal processes. Also growing in popularity is outsourcing of other legal services such as contract drafting/review and litigation support.

As stated by the new market research report on Legal Process Outsourcing, India represents the largest market worldwide. The country is also forecast to emerge as the fastest growing market with a CAGR of 25.9% over the analysis period, led by skilled and cheap labor as evidenced by the presence of a large pool of English speaking, U.S. and U.K-graduated lawyers working at relatively lower wages; technological capability; flexibility in working hours; robust infrastructure; and faster time-to-market. In addition, the legal system in India is based on the English common law, like legislative frameworks in the U.S., the U.K and Australia. The Philippines ranks as another major market for LPO. E-Discovery represents the largest service market in terms of revenue. Patent support is forecast to emerge as the fastest growing service category with a CAGR of 27.6% over the analysis period given the growing focus on disruptive innovation and the ensuing emphasis on protecting intellectual property rights.

Major players covered in the report include American Discovery, Amstar Litigation Support, Clutch Group, Cobra Legal Solutions LLC, CPA Global Limited, Evalueserve Ltd., HCL Technologies Limited, Infosys BPO Ltd., Integreon Inc., Lex Outsourcing, Mindcrest Inc., QuisLex, SmithDehn India, Thomson Reuters Corporation, UnitedLex Corporation, and Wipro Limited, among others.

The research report titled “Legal Process Outsourcing (LPO): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, strategic industry activities of major companies worldwide. The report provides market estimates and projections in US$ Million at the Service Provider’s levels for major geographic markets – India, the Philippines and Rest of World. The global market for Legal Process Outsourcing is also analyzed by service type – Litigation Support, Contract Drafting, E-Discovery, Patent Support, and Other LPO Services.

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