Thursday, January 08, 2009

India - answer to woes of corporate America

In response to the article “Analysis: Legal Process Outsourcing: just hot air?”, posted by the ALB Legal News, The Posse list has written a write-up that speaks in detail the extent of legal outsourcing business as well as the money involved in the Indian legal outsourcing market.

U.S. MNCs constitute the biggest slice of the clientele for Indian LPOs. Conglomerates such as Microsoft, Dupont, General Motors, FMC Technologies, Philips etc. are all doing direct LPO business in India. In other words, these companies are directly involved with their respective vendors without the involvement of the law firms. Cost savings seems to be the main instigator for driving the interest in the Indian market. According to the Fullbright & Jaworski client study, 90% of the U.S. companies are involved in some or the other form of litigation with the average of 37 lawsuits at any given time. About 10% of study participants said that legal spending amounts to approximately 5% of the company’s revenues. Thus the companies with a turnover of $1bn will have their legal fees as $50mn. Thereby, no rocket science is needed to understand the fact that a market which can provide services of the same quality and in a cost-effective manner will be a gold mine for them. India with its young, dynamic and diligent workforce trained in the common law is undoubtedly the best outsourcing option.

Corporate America in the present scenario is seeking for ways to put a check on its incurred costs without compromising on the quality as well as the security of the information. Both these aspects can be achieved by Indian LPOs using some ingenuity and an understanding of their client concerns. Certifications such as ISO and Six Sigma can help in fostering trust among the clients with respect to our way of operations and our comprehensibility of the seriousness of the situation. India is the store house of human capital, what is needed is the right direction for utilizing it.