Legal Process Outsourcing Market to Cross $30 Bn by 2027; Global Market Insights, Inc.

Some of the major legal process outsourcing (LPO) market participants are Acumen Legal Services, Clairvolex Knowledge Processes, ADEC Innovation, BODHI Global Solutions, Amstar Litigation Support, Cobra Legal Solutions, Elevate Services, Evalueserve SEZ, Infosys, Kensium BPO, Datascribe Technologies, LawScribe, Morae Global Corporation, Pangea3, Lexplosion Solutions, and Wipro.

Global Market Insights Inc. has recently added a new report on the legal process outsourcing market, which estimates the market valuation for LPO will cross US$ 30 billion by 2027. The high demand for specialized legal services to ensure compliance with the changing regulations is likely to drive the industry’s growth.

Drafting accurate and precise contracts is an integral part of a company that enables it to avoid redundant litigations caused due to minute mistakes by amateur contracts. LPO service providers ensure that they offer high-quality precise contracts that cover all the important and necessary points without any errors.

Contract drafting service providers also focus on offering contract review & renewal process to capture a large market share and attract more consumers. There will be an increasing demand for contract drafting services including development, licensing, procurement, distribution or transfer, financing, review & comment against client form or standard positions, and review & comment against client parameters. With legal process outsourcing service providers drafting precise contracts that specify the obligations and rights of different parties, the market will witness increasing demand.

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The high cost of legal services in developed countries, such as the U.S. and UK, is supporting the trend of outsourcing legal activities to countries such as South Africa, the Philippines, and India. Outsourcing legal process outsourcing services to these countries enables them to gain access to high-quality legal professionals with technical expertise in specific market fields. Outsourcing also helps them to realize significant monetary benefits by reducing the expenses of expanding in-house legal teams. Offshore outsourcing also helps them to work post office hours due to differences in the time zones across different regions. For instance, a 12-hour difference between India the U.S. helps law firms in the U.S. to complete projects overnight after work hours by outsourcing their legal work to a law firm in India.

The Middle East & Africa will emerge as an expanding LPO market through 2027 due to rising number of law firms coupled with improving literacy rates in countries such as the UAE and Saudi Arabia. The government focus on digitalization technologies will support internet penetration, in turn, boosting the LPO market growth. South Africa is emerging as a lucrative market with several law firms in Europe outsourcing their legal activities to the region. The similarities with the regulatory and legislative framework in the UK make it a preferable destination for legal process outsourcing.

South Africa is becoming one of the most preferred offshore destinations for law firms and organizations situated in Australia, Europe, the UK, and the U.S. due to the similarities in the legal system, advantageous time zone, and varied selection of qualified lawyers.

Some major findings of the LPO market report are:

  • The high rates of hiring legal services in developed countries, such as the U.S. and the UK, have boosted the legal process outsourcing market growth. Law firms and organizations in the region are focusing on outsourcing their legal work to countries that serve their requirements at affordable costs.
  • The rising number of corporate organizations, coupled with changes in the regulatory landscape, has boosted the demand for LPO services. Organizations seek help from third-party legal process outsourcing service providers to ensure strict compliance with changing regulations.
  • Large multinational organizations expanding their market presence globally will outsource their legal work to ensure compliance with laws. With an increasing number of organizations focusing on global expansion, they will outsource their legal activities to LPO providers for contract drafting, litigation support, patent support, and compliance assistance.
  • The rising number of SMEs over recent years will spur the demand for LPO services. SMEs will rely on LPO service providers for legal assistance due to budgetary constraints. Partnering with a legal process outsourcing service provider enables them to relieve the stress on the company’s legal department.
  • The growing need for accurate compliance with both regional and international laws is compelling organizations to outsource their legal works. By outsourcing, they gain the advantage of legal help provided by experienced lawyers working in an LPO firm. This ensures that the organization is protected from unnecessary litigations.
  • India and the Philippines have emerged as leading LPO service providers due to the availability of highly skilled personnel and a large English-speaking population. The Asia-Pacific market will witness growth, which is attributed to the increasing number of professional legal process outsourcing service providers hiring lawyers with specific legal expertise.

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Partial chapters of the report’s table of contents (TOC):

Chapter 3   Legal Process Outsourcing Industry Insights

3.1    Industry segmentation

3.2    Impact of coronavirus (COVID-19) pandemic

3.2.1    Global outlook

3.2.2    Regional outlook    North America    Europe    Asia Pacific    Latin America    MEA

3.2.3    Industry value chain

3.2.4    Competitive landscape

3.3    Industry ecosystem analysis

3.3.1    Hardware suppliers

3.3.2    Technology/software providers

3.3.3    Cloud service providers

3.3.4    Service providers

3.3.5    Telecom operators

3.3.6    End-use landscape

3.3.7    Vendor matrix

3.4    Technology & innovation landscape

3.4.1    Evolution of LPO

3.4.2    LPO vs BPO

3.4.3    Technology Assisted Review (TAR)

3.4.4    Artificial Intelligence (AI)

3.4.5    Automated Meta-Data Contract Abstraction

3.5    Regulatory landscape

3.5.1    SRA Code of Conduct 2011

3.5.2    The Limited Liability Partnership Act, 2008

3.5.3    Data Protection Act 1998 (DPA)

3.5.4    EU Data Protection Directive (Directive 95/46/EC)

3.5.5    Information Technology Act, 2000

3.5.6    ISO 9001 Certification Achieved for Quality Management System

3.6    Outsourcing industry landscape

3.6.1    North America

3.6.2    Europe

3.6.3    Asia Pacific

3.6.4    Latin America

3.6.5    MEA

3.7    Cost savings overview

3.8    Industry impact forces

3.8.1    Growth drivers    Cost savings to companies in North America    Focus on core competencies in Europe    Growth of the outsourcing and offshoring services in Asia Pacific countries    Development of broadband and communication infrastructure in Latin America    Rise in number of SMEs in the MEA

3.8.2    Industry pitfalls and challenges    Potential security breaches    Lack of quality and supervision

3.9    Growth potential analysis

3.10    Porter’s analysis

3.10.1    Supplier power

3.10.2    Buyer power

3.10.3    Threat of new entrants

3.10.4    Threat of substitutes

3.10.5    Internal rivalry

3.11    PESTEL analysis

3.11.1    Political

3.11.2    Economic

3.11.3    Social

3.11.4    Technological

3.11.5    Environmental

3.11.6    Legal

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Source: Global Market Insights Inc.