Sunday, September 30, 2007

LPO: More Monies Pour In!

It may have seemed in recent times that the star of LPO is shining but only for a particular Legal Outsourcing company but I have some good news from the grounds. Even though there is a worrying increase in the number of "tiny to small" self styled LPO companies, credible companies in the space are working diligently and seeing impressive growth. One such company, SDD Global Solutions, with operations in the erstwhile princely state of Mysore, recently reported on new funding they have secured. Here's the press release:


"SDD Global Solutions Private Limited, the only legal services outsourcing company in India managed by a U.S. law firm, announced on Tuesday that it has entered into a comprehensive funding arrangement with SFP Priority Co., Ltd., a member of the SFP group, a leading Asia-based investor. The arrangement underscores the significant demand for, and growth potential of, SDD Global's high-end legal services offshoring business.

This multi-faceted arrangement provides for a first round of US$2mn, to be followed by subsequent rounds on an as-needed basis. It is believed that this funding, combined with the investments that SDD Global raised previously, amount to the largest foreign direct investment made in any company in Mysore. SFP Priority will have two representatives join SDD Global's board of directors.

"We are very pleased with this tremendous vote of confidence in both our Company and Indian legal services outsourcing generally,” said Russell Smith, Chairman of SDD Global. “This will help us to more rapidly expand our business and to play an even larger role in the paradigm shift in the way legal services are delivered in the West," said Smith.

This arrangement is a key component of Mysore-based SDD Global's strategic plan to expand and consolidate its position as one of the industry’s leading players. The funding will be used primarily to (a) hire additional Western-licensed attorneys to augment both the Company’s extensive employee training program in India and its range of services offered, (b) expand its global marketing efforts, and (c) step up its ongoing recruitment drive for the best and brightest law graduates in India.

Established in April 2006, SDD Global has previously received equity funding from investors from organizations including Merrill Lynch, Cisco Systems, Goldman Sachs, and Barclays Capital, as well as a debt facility from State Bank of India. The Company’s roster of clients includes companies such as HBO, Calvin Klein, Sony Pictures, John Wiley & Sons, 20th Century Fox, Channel 4 Television, as well as multiple US-based law firms."