Author: Claire Ruckin
05 Nov 2009 | 00:55
Travers Smith, Hammonds and Halliwells look to LPOs to cut costs
Travers Smith, Hammonds and Halliwells are considering a range of outsourcing measures.
The trio are the latest firms interested in cutting costs by sending either legal or back office support work to outsourcing companies.
Travers is considering offshoring some legal work, with the top 50 firm set to go to India later this month to speak to several legal process outsourcers (LPOs) after seeing a pick-up in corporate activity levels.
If it decides to go ahead with the plans, it is intending to carry out a pilot that will initially see both the firm and the outsourcer carry out due diligence on the same projects to compare standards. It will then consider using the outsourcer if it is happy with the standards.
National duo Hammonds and Halliwells are at an earlier stage of debate but both firms are considering outsourcing options for both legal and back office functions, although they have yet to make any decisions about which work, if any, they will eventually send out. Hammonds expects to make a decision within the next year.
Hammonds managing partner Peter Crossley commented: “We are considering outsourcing and are speaking to various people. One has to look at these things across the board. It is about asking how you can provide for your clients in the best possible, most cost-effective way, taking into account technological advances.”
The news comes as growing numbers of leading UK firms look at either legal or business process outsourcing. Pinsent Masons has a litigation support service in co-operation with LPO Exigent in South Africa. Eversheds, meanwhile, is to save up to £2m a year through an outsourcing deal with Exigent, which is expected to lead to the loss of some 95 secretarial jobs in the UK.
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COMMENTS (TOTAL 4 COMMENTS)
Quality Controllers!?
Does this mean fee earners become glorified quality control checkers, carrying out non-chargeable admin work fixing the errors and inaccuracies in whatever comes back from the LPOs?
Anonymous -05 Nov 2009 | 10:03
What comes around, goes around.
I see, we've offshored many fields and the ones who are complicit in this are lawyers...
Now the shoe is on the other foot, prepare to see your salaries dip.
John Parker -05 Nov 2009 | 13:54
Yes John - in the same way as the existence of trainees and paralegals makes salaries fall.
Are we really so insecure as to think that this will be a credible threat? If firms need to cut costs and think this is the best way to do it, good for them.
SicTransitGloriaLegis -10 Nov 2009 | 08:59
Outsourcing for legal projects is an explored tool
Most firms in UK and US have tried giving projects to third party companies within their homeland. Now their initial decision to move the work out of their offices was pretty hard to make, as they realized the benefits of moving the work out - they realized the ways such tools can be used effectively and above all outsourcing could be good as it would free the time of high cost resources - who then can be deployed in more meaningful ways for the betterment of the bottom line of the business.
Sundeep Malhotra -19 Nov 2009 | 04:02
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