Wednesday, September 28, 2005

Fed Rate Hikes and Offshoring of Legal Work

Terry Corbell, a Seattle area management consultant writes about the impact of fed rate hikes on expensive services, such as legal work. To be able to operate comfortably in the event of a recession caused by the hikes, offshoring of legal work would be inevitable. Terry thus advocates acquiring skills that may help law firms in pulling a successful offshoring arrangement:

Making economic forecasts can be tricky. A lot depends on unanticipated events and human behavior. There are limitless variables to consider and all of them aren’t publicized in government reports.

For example, what will be the impact of legal offshoring? Yes, you read right. Legal offshoring. The U.S. has nearly 900,000 attorneys and paralegals, according to the U.S. Bureau of Labor, but are you aware that your legal fees might be kept low because of law firm outsourcing?

That’s right, according to a published report quoting Evalueserve. The Indian business and legal research firm believes 1,300 Indians now perform legal research for U.S. law firms to the tune of $52 million. Exponentially, that means in 10 years, U.S. law firms will outsource $970 million of work – just another example of why it’s important to develop management skills and become the chief decision-maker.