Is It A Good Idea for Law Firms to Outsource Legal Work?

1
Is It A Good Idea for Law Firms to Outsource
Legal Work?

• In its basic form outsourcing merely means using
  an outside contractor to complete a process that
  could or even used to be undertaken by the
  firm.  Outsource legal work is generally seen as
  a way to reduce overheads and improve
  efficiency.  However, this does not always mean
  it is the best solution for a business.

2
The Evolution of Ways to Outsource Legal Work

• Initially legal firms would handle everything on
  your behalf.  If they did not have enough staff
  or other resources to cope with your demands then
  they would gain more.  This is the natural way
  that many firms grow bigger and expand their
  expertise.
• However, with the advancement of the internet and
  digital communication it has become easier for
  legal firms to operate online and reduce
  overheads.  This makes it very difficult for
  traditional firms to compete.  The solution is to
  look at the costs and overheads and make savings
  where possible.
• One way in which this has become possible is to
  take the more mundane tasks and send them to
  lawyers who live in other countries such as
  India.  In these places the rates of pay are
  dramatically lower which means the law firm can
  get far more work accomplished for much less
  expenditure.

3
The Issue When They Outsource Legal Work

• If a firm chooses to, outsource legal work then
  they may be using lawyers which offer an inferior
  service to the one that they are striving to
  achieve.  Lawyers based in other countries may be
  cheaper but they may not have such a detailed
  grasp of the complexities of the law at home. 
  This could cause a serious issue when you are
  preparing a case.
• When you outsource legal work you are also
  highlighting the fact that this is an option. 
  Many large businesses have seen the advantages of
  using foreign lawyers and will start to use them
  directly for the majority of their needs.  This
  will leave the home country lawyer completely out
  of the loop.  Instead of cost saving they will be
  left looking for work, or even disappearing. 
  Unfortunately many American law firms can simply
  not compete with the charges incurred when a firm
  outsources legal work.  This can quickly spell
  the end for many small legal firms and even put
  larger ones at risk.

4
Contd

• Another issue which is often overlooked is the
  ability to get information quickly when
  required.  Many other countries, such as India,
  are not working at the same time as your local
  law firm.  This means that an email must be sent
  and then replied to before you can deal with the
  issue.  IN many cases this is not an issue. 
  However, if you are in the middle of a deal then
  the additional advice can be invaluable and you
  will not want to wait!
• There is no doubt that outsource legal work will
  reduce the overheads for legal firms.  These
  savings should be passed onto the customer. 
  However, is the reduced bill worth the potential
  lower quality service and the increase in
  unemployment in American lawyers?
• Source http//www.b2bfairtradedirect.com/is-it-a-
  good-idea-for-law-firms-to-outsource-legal-work/