Written Communication...

... is among the most important parameters tested in potential recruits in LPO companies. The reason is not difficult to understand, most of the deliverables are written (with the exception of a few "verbal reports" - requested by clients looking to avoid an "electronic trail").

Economic Times carries an article, titled, "Training in technical language must for KPO services", talking about just that - written communication.

Here, fluency in communication, especially written communication, becomes imperative as employees are essentially using judgement to interpret data in areas like research; or case law in the field of legal outsourcing. “With no clear definition of right or wrong, the manner in which a sentence is constructed, the nature of language used may play a critical role in overall perceptions of quality of service delivered,” he says.

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Training in technical language is considered an essential part of KPO services, since the industry recruits both professionally-trained and mainstream graduates who, often under the guidance of US-trained experts, undertake specialised high-end work.

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Communication is, therefore, an area that is being tested at the recruitment stage and then fine-tuned through on-the-job soft skills training sessions. “When the candidates come in for an interview, they are given written tests to check their skills in this area. There is a common training programme and in this too, there is a provision for written communication skills,” says Kishore Mirchandani, president, Outsource Partners International, New York, US, which is an accounting and tax process outsourcing firm.

Goes without saying, efforts must be expended on conducting a training on written communication for people who can articulate!

LPO aka High End Outsourcing!

If billing rates are any metric for where in the spectrum of outsourced services, does a particular service lie, LPO related work is right on the top. Financial Express article at the link,
http://www.financialexpress.com/fe_full_story.php?content_id=106310, mentions going rates of $30-70 for legal outsourcing related services and as high as $125 for patent research related work!

Whoa!

Move over SENSEX, LPO is here!

Let's begin by asking a simple question: Which Asset Management Company (AMC) in India (heck, anywhere in the world) can give you 500% returns? None? What about 1000%? None? Now, what about 2000%? Well, not an AMC but LPO business can yield that kind of profits!

Don't take my word for it, quoting from this article, titled "Legal outsourcing: the next big thing", that appeared in The Economic Times:

The legal outsourcing opportunity, never mind its size, is one that could be extremely profitable. Consider this — even if one pays a good lawyer up to Rs 40,000-50,000 per month, which would translate to a mere $5 per hour cost; at a billing rate of $100 per hour, that translates into 2000% profits.

And, we are also talking about volumes:

Mr Natarajan agrees that for some jobs, the billing rate could be as high as $100 per hour. Presuming 100,000 legal jobs coming to India by 2015, this translates into a potential $20bn opportunity for India by 2015.

Mr Natarjan doubts that figure, giving his own estimate of $5bn. Sunil Mehta, VP —research, Nasscom, admits cautiously that huge opportunity could potentially exist but, he adds, that India needs to open up its legal services and amend its Partnership Act.

Well, both $5bn or $20bn, or anywhere in between, is a large opportunity! The article further talks about legislative changes for which the NASSCOM needs the government's help:

Nasscom, on its part, is lobbying with government to argue for reciprocal opening up of the services sector at the WTO. Mr Mehta says there are opportunities not only in the legal sector, but other services areas, such as accounting.

I hope and wish this were to be true. Are you also wondering if there are any LPO company stocks that you could buy? I am!