The current global recession, business mergers and acquisition, and bankruptcy filings have accelerated the growth of LPO (Legal Process Outsourcing) in India. There has been a sizeable uptrend in the LPO industry since the downfall of the US economy. In particular, the vendors providing support functions such as Documentation Review and Legal Research have grown immensely. Currently Indian Legal services industry is growing at a rate of about 40% per annum.
A number of Law Firms and Corporations including Baker and McKenzie, Allen and Overy, Venable LLP, Arnold and Porter LLP, Eversheds, Clifford Chance, and UBS have set up their captive centers in India for supporting their legal services. Further, the number of LPO vendors has increased with the emergence of new LPOs. Currently, India is a home of more than 200 Legal process outsourcing vendors. Additionally, a number of companies presently operating in the BPO (Business Process Outsourcing), IT/ITES industry have also expanded their footholds in the LPO industry. Some of the most notable names include Infosys, HCL, Patni, EXL and Wipro. Further, a number of existing LPOs such as Pangea3, Quislex, and Mindcrest have seen a significant increase in the number of outsourced projects in the last few months.
In a recent interview, Mr. Sanjay Kamlani, Co-Founder and Co-CEO, Pangea 3 stated that there has been a sharp rise in the LPO business with revenues increasing by over 100%. Further, the US Companies and Law Firms are concentrating to outsource their work in areas of Electronic Discovery and Bankruptcy Litigations. Pangea 3 has also increased its headcount by 50%. Similarly, SDD Global Solution, another LPO based out in the Mysore location reported 50% increase in revenue. Another existing LPO Company Mindcrest, has now almost doubled its staff to 450 employees in 2008 as compared to 200 in 2007, and is expecting to increase its staff by 800 employees in 2009.
Currently, the Indian LPO industry provides services in different categories, including low-end services like Legal Transcription, Legal Coding, and Data Entry or Record Keeping; middle level services like Legal Advice and HR mobility; and high-end services like Legal Advisory services. As per the current and future expectations of Indian LPO industry, key growth areas in Indian LPO industry remain in the high-end services including Document Review, Intellectual Property (IP) Review, and Contract Management. The industry also expects to conceive growth in areas of Risk Management and Corporate Compliance with increasing demand for transparency in the US Corporate structure.
Finally, according to the Industry Experts, Indian LPO industry is expected to grow by $950 million in 2010. The primary motive of outsourcing for Corporations and Law Firms remains cost efficiency. Undoubtedly, these arduous times in the US economy are providing a tremendous opportunity to Indian LPOs to make merry and achieve substantial growth.