Archive for the ‘ Legal Process Outsourcing (LPO) ’ Category

Precisely How Staffing Works Best For Offshore Companies

Because of the last economic downturn, many companies continue to seek an outsourcing company that will meet their requirements,  flexibility and cost effective. The choices have expanded to consist of many procedures that have not previously been off-site, including staffing offshore. Most of these opportunities will potentially lead to discipline in just a matter of years. They certainly can and will be valuable for small businesses desperate  for fulfillment in the modern economic system. In the Philippines,  outsourcing is not really new. Corporate customer call center have been established here through the back of the past decade and earlier years of this century. The outsourcing of customer support functions led to growth in other areas such as business process outsourcing and site maintenance.

Offshore Staff Leasing

Offshore staffing appears as hiring someone locally, except that the service provider will bring off the selection procedure, setting up, and the particular procedures on behalf of a typical company customer. Employee leasing is the one and only outsourcing resolution if ever the workload is accommodated for full time staff and if ever the requirement is on a regular need.

Offshore staffing can give give companies approach into an athletic manpower resource, and for countries like the Philippines, these talents come at a lower labor costs when compared to workforce in first world countries. With the results of recession experienced by the global economy, and while earnings follow through up for their very limited manpower pool, cost reductions that offshore staffing can offer is extremely a motivation generally in most business owners.

Although hourly billing is still being practiced by many lawyers, its fate remains appears to be limited at best.  In turn, value-based, flat-fee billing as a result of legal process outsourcing providers in the Philippines has increasingly become an alternative mode of billing by lawyers.  In fact, according to American Lawyer magazine, 91 percent of all U.S. law firms agreed to flat billing for at least some or all legal matters in 2010.

According to Susan Hackett, Senior Vice President and General Counsel of the Association of Corporate Counsel, “value-based billing options are becoming institutionalized and will likely increase steadily year over year.”  While skeptics may argue that value-based billing as a result of offshore legal outsourcing to the Philippines may end up decreasing the overall revenue of law firms, other see value-based billing their offshore legal outsourcing as an opportunity to increase revenue.  For example, Morgan Lewis & Bockius, a firm that handles Cisco’s commercial litigation nationwide reports that 40 percent of its revenues are billed through alternative fee arrangements as a result of offshore legal outsourcing.

Legal Process Outsourcing is Here to Stay

Its a known fact that today, legal service providers can no longer rely on an unwavering acceptance of the old model which according to Cisco General Counsel Mark Chandler describes as “the last vestige of medieval guild system to survive into the 21st century.”  Instead, lawyers and law firms must deliver value and thus, this is one of the primary reasons why legal process outsourcing (LPO) to the Philippines is likely to prosper throughout the incoming years. 

Not too long ago, there appeared to be a general conscious that clients would simply bow down and accept the overall “pyramid structure” of large law firms which generally required clients to pay a king’s ransom for massive hourly billing by a large team of junior associates at the bottom who had no idea of what they were doing and as result, purposely bill more hours than what was required.  These junior associates were made up of fresh law graduates but thanks in part to the recession, clients have started to rebel against these steep rates and refuse to be billed by beginner lawyers.