Eight more UK top 30 firms size up legal outsourcing moves

Linklaters, SJ Berwin and Freshfields look at outsourcing options

Some of the City's leading law firms are considering outsourcing legal work as increasing numbers of firms look to cut costs by using external providers for both legal and business support.

Linklaters, SJ Berwin, Freshfields Bruckhaus Deringer and CMS Cameron McKenna are among eight firms within the top 30 currently looking at introducing some aspects of legal process outsourcing (LPO).

Camerons and SJ Berwin have yet to identify which areas they would like to outsource, while Linklaters is considering sending some document review, due diligence, contract development and legal research functions to an outside provider.

Research by Legal Week shows that a further eight firms within the top 30 already carry out some form of LPO, including the likes of Allen & Overy (A&O), Eversheds, Lovells, Pinsent Masons, Wragge & Co and Simmons & Simmons.

A&O, for example, uses a network of alumni for work such as first drafts of banking documents, as well as outsourcing some litigation document review to India through outsourcing company Integreon. The Integreon deal followed a pilot in March this year and comes as A&O has also outsourced some document review work to companies Pangea3 and QuisLex in response to client demand.

Eleven top 30 firms said they had no plans to carry out any legal process outsourcing. However, some of these had looked at it and discounted it as an option.

Linklaters chief operating officer Simon Thompson (pictured) said: "Our clients are under increasing financial pressure and clearly want to achieve the best value they can for their legal spend. This has led them to seek new and alternative ways to source their legal services. This includes LPO. As such, we are keen to develop effective ways in which we can work in tandem with LPOs in support of our clients' requirements."

The trend comes as firms also look at increasing the amount of business process outsourcing (BPO) they carry out.

More than half of the firms in the top 30 already outsource some back office functions, with the number of firms interested in outsourcing and the range of functions being outsourced both set to increase.

SJ Berwin chief executive Keith Wood said: "Although we have nothing in place, we are looking at legal and business process outsourcing as possible opportunities to improve further our efficiency levels. Law firms are going to feel a squeeze by clients seeking more for less and if partners don't want to take a hit, they'll have to reduce overhead costs."

Clyde & Co, Irwin Mitchell and Withers did not respond to the survey.

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