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Legal Processing Outsourcing – A Gnat in Elephant’s Ear?
By A.S. Pradhan


At least one law firm is not afraid of the competition from LPOs. The firm is K&L Gates. Managing partner Peter Kalis has compared the LPO industry to being a gnat in an elephant’s ear as far as his firm is concerned. For those who have been living under a rock, LPO means legal processing outsourcing. That’s right. Indian “call centers” are even doing legal work right now and not just selling cheesy novelties.

Newsflash: NBC’s Outsourced is five years behind in its portrayal of the Indian outsourcing industry.

Is that a big threat? It depends on who you ask. Most people think that foreign lawyers from developing countries will never be given important work and will only be doing document review. Then there are people who think that even this work cannot be done properly by foreigners who can mess up and cost the firm the case. So this enthusiasm for outsourcing will not last long.

But outsourcing in the computer industry started the same way. It started from low-cost and low-skilled work and moved up the chain. Of course, the legal profession is very different. It depends upon extensive knowledge of the local jurisdiction’s laws, strong language skills and being present in court. It’s doubtful if foreigners, whether living outside the country or coming here on work visas can meet all these requirements and of course be admitted to the bar. So there is another way this outsourcing could play out.

Peter Kalis has hinted in the usual confusing lawyer talk that his firm could move legal work to smaller American cities to take advantage of the low cost of living (Read : cheaper labor costs). This way the firm’s clients need not be worried about their data being compromised in some foreign country. So who’s planning to move to Cheyenne?




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