Tag Archives: legal process outsourcing


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Outsourcing is a business practice where a particular company will hire someone who does not work for their company such as another company or a freelancer to do particular tasks for them. Typically, tasks outsourced will be highly repetitive or specialized tasks such as calling long lists of names with a particular call script, accounting, programming, data entry, technical support, payment processing, or some other specialized task.


The reason companies outsource work to other companies are multi-fold. One reason could be to:

Save Time — so that employees and management can focus more on the core competencies of the company such as selling widgets while outsourcing bookeeping and reminder calls to companies who specialize in those particular tasks. Another reason could be:

Cost Cutting — Many outsource companies are located in India, The Philippines, or Eastern Europe where labor costs are lower than the United States, hence, creating an opportunity to capitalize on less expensive labor.

Skill Optimization — is yet another reason to outsource work as outsourced companies specialize in particular tasks such as blog set up, eCommerce site creation or XML conversion while your company specializes in widgets.

Eliminating Uneven Schedules — if you have a job to be done that will take only 10-15 hours a week on some weeks and more or less hours on other weeks, hiring a full-time or even part-time employee is a commitment that you will have trouble keeping. If that employee quits in the middle of a project, you’ll have another problem. It might be easier to outsource the project to a company who specializes in that task and has dozens of people who know exactly how to do it rather than hire your own staff.

Reducing Hiring — hiring and firing is expensive and is an art form that you might not have time to master. If you have a particular job that people are always quitting every two months, it might be easier to have the job outsourced to Manila where they have full-time HR managers to handle the hiring and firing for you! That way you can focus on widgets instead of dealing with people who quit on a whim leaving you high and dry. The outsourced company you hire will have plenty of backups all in the same specialty when the employee assigned to you quits.



Freelancers — Some companies hire freelancers which is a type of outsourcing.

Fixed Schedule — Others hire another company for a particular schedule with a contract which extends for a particular number of months or years such as 40 hours a week for two years.

Employee Leasing — Some companies hire a team of workers from an agency which is sometimes called “employee leasing.” Other companies pay for results in specialties like lead generation rather than paying for particular hours of work.

Assignment Based — Programming or software development outsourcing often has a company pay for a completed product or for a particular number of hours to do a particular job although there is very rarely a deadline.

On Call — Some outsourcing is on an on call basis. Programmers might be hire to fix code only when it breaks or to do programming work as needed. Call centers might have a small assignment from time to time only when needed.


Outsourcing jobs are sometimes categorized using particular terms such as:

ITES — Information Technology Enabled Services which could include data entry using computers, web design, technical support, or other tasks which involve technology to facilitate the task in some type of a way.

KPO — Knowledge Process Outsourcing is also a bype of Business Process Outsourcing that includes tasks that require a higher level of education, knowledge or skills such as Accounting, Software Development, Research, etc.

LPO — Legal Process Outsourcing focuses primarily on legal research, patent research, contract drafting and legal support services, but rarely involves actually going to court.

RPO — Research Process Outsourcing or Recruitment Process Outsourcing. Research outsourcing is popular in Bangalore, India as there are many companies that offer market research, web research, and Pharmaceutical research. RPO could also be a form of human resources outsourcing where an outside company will help you find employees or leased agents. This is by far the least popular form of international outsourcing as there are few providers who offer overseas assistance with recruitment.

HRO — Human Resources Outsourcing as mentioned above is the least popular form of international outsourcing as there are very few overseas companies who offer competent service in this industry. However, there are a few companies in India and the Philippines that allow you to lease call center agents and programmers at low rates. However, the quality of such help is dubious and not guaranteed in any way by the provider company.

MBPO — Medical Business Process Outsourcing includes outsourcing of Medical Billing, coding and Medical Transcription. Quality standards and billing in these fields is a lot more uniform than in other BPO tasks as companies can charge a percentage in Medical Billing and can offer rates per number of characters or words (or lines) in Medical Transcriptions. Quality standards are also easy to measure as there are international standards for Medical Billing and Medical Transcription. You can measure errors as a percentage rate. If a company makes more than a particular fraction of a percent of errors, they generally go out of business or get fired.


Commonly outsourced jobs might include: Accounting, Bookkeeping, Call Center, Data Entry, ePublishing, Legal Research, Market Research, Medical Billing, Medical Transcriptions, Social Media, Software Development, and Web Design. However, there are many specialties in most of these types of outsourcing jobs.

Accounting Specialties — Bookkeeping, Tax Preparation, Payroll, Bank Reconcilliation

Call Center Specialties — Appointment Setting, Chat Support, Collections, Customer Help Desk, Data Verification, Email Support, Inbound Customer Care, Lead Generation, Order Taking, Outbound, Survey Taking, Technical Support, Telemarketing, Ticket Sales,

Data Entry Specialties — Data Capture, Data Cleansing, Data Conversion, Data Entry, Data Mining, Data Processing, Data Quality, Data Security, Data Transcription, eCommerce Data Entry, Forms Filling, Forms Processing, Image Processing, Product Data Entry, Scanning, etc. Data Conversion includes XML, SGML, HTML5 conversion, PDF or JPG conversion, and conversion from one language or format to another.

Social Media tasks might include article writing, proofreading, posting on Facebook, managing a Twitter account, LinkedIn, Instagram, Pinterest, or any of the other common social media platforms. Most companies specialize in several social media platforms, but cannot provide service for ones they are not familiar with or don’t have sufficient staff for.

Software Development Specialties — Blog Set up, eCommerce Set up, Software Testing, Web Design, Employee Leasing, etc.

Common software languages include: C, C#, C++, ERP, J2ME, Java, jQuery, LAMP, MySQL, .Net, OpenSource, PHP, Ruby on Rails, SAP, SQL, XML, and more.


You might also like:

Wikepedia’s article on — outsourcing

Investopedia’s article on — outsourcing

Entrepreneur’s article on — outsourcing

See our informational page on the term — outsourced.

See 123outsource’s compilation on best articles about outsourcing.

What countries are best to outsource a particular task to?

Six problems that only individuals working in a BPO industry would understand.


Which countries are the best to outsource particular tasks to?

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When you boil it down, is it about the individual company, its boss or its workers? Or is it more about the available labor pool in that particular country, and its cultural tendencies? The answer is that it is a little of both. Each country has different attributes. Thank god the world has so many countries, because to get anything done you need them. Can you imagine Danish pastries made by Americans? Or French Croissants made by Germans? What about Chinese food made by Koreans? It just doesn’t taste the same.

IT Outsourcing / Software Development Outsourcing
There are several countries that are good for this type of work. Keep in mind that the market can change abruptly if a single large company like Google decides to hire or fire in mass! Americans are the smartest at programming. We invented the computer and the internet in my state of residence here in California. But, due to market conditions, people are far too busy to be able to get anything done in a reasonable timeframe. Belarus, Ukraine, Romania and India are my best picks for getting outsourced software work done. These countries need more hours to do the same work that an American could do in fewer hours. But, at least they HAVE those hours. The

Europeans are reputed to be more careful about following directions than Indians, but there are companies (if you search hard enough) who are very nitpicky as well. If you plan on visiting these companies, the weather is nicer in India, especially during the winter. Shop around and test these guys out.

Call Center Outsourcing
India has a reputation of being big in this business. But, the sad reality is that they lack the social graces to maintain a client base. The Philippines, Kenya, South Africa, Costa Rica, Jamaica, and other Central American destinations are now popular picks for outsourced call center work. They have better accents, more graceful social skills, and the prices are reasonable as well. Indians might have an edge at technical support since they are stronger at IT tasks as a culture in India. India might be a good destination for Telemarketing since they are more aggressive than Filipinos. Once again, shop around and compare. Pick your agents by hand as well.

Data Entry Outsourcing
India leads the pack in this type of work, but I have not found so many companies that seem meticulous enough to do data entry outsourcing. I have no recommendations here other than to be careful.

Medical Transcription & Billing
It might be a better idea to find a US based provider that has staff members throughout the world. This practice is already commonplace. So, you can get the price benefits of outsourcing — without outsourcing, at least not outsourcing yourself! There are a few good medical transcription companies in India an the Philippines who I spoke to who gave a good impression so far in these industries.

Web Design
India once again has many Web Design companies with charismatic bosses who communicate well. Prices are low as well. But, don’t overlook Argentina. Please understand that the Argentinians culturally are great artists, and their web designers are no exception. My staff learned that they lack a business mentality in South America. The work is good, but quotas, schedules, deadlines, websites that actually have phone numbers, and other “being businesslike” characteristics are lacking down there! No country has it all, but the South Americans have great art skills and the warmest personalities in any hemisphere. Worth a try!

Accounting, Finance & Legal
India, in particular Delhi has many companies with very educated people engaged in Accounting outsourcing Finance outsourcing as well as LPO or Legal Process Outsourcing. Please keep in mind that the LPO companies cannot do all of the tasks that an American law firm can do, but they can do many support tasks at 30% of cost while you sleep.

(1) Finding the right country to outsource to is a combination of culture & cost effectiveness.

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Delhi LPO in the news

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Delhi LPO in  the News
Delhi is the capital of the Indian LPO industry.  Legal Process Outsourcing is one of the fastest growing outsourcing specialties in India.  The growth rate is so phenonimal, that American attorneys with many levels of experience are applying for jobs in epic proportions to Delhi LPO companies. The majority of American attorneys applying for work in Delhi are less experienced ones who would be functioning as Junior Attorneys
LPO Watch
There is a new online magazine that converns itself with the LPO industry called LPO Watch. This new publication will have articles about the LPOs in Delhi and other parts of India.  This magazine is available from kpoconsultants.com.
High End LPO Services
Intellextra is unique in its offering of higher end Delhi LPO services while most other LPOs focus on work typically done by junior attorneys in U.S. law firms.  They specialize in legal drafting and research among other things.  But, now, they are also offering specialized KPO services such as accounting, finance, Legal Process Outsourcing training, HR, and web development.  
Global LPO conference
On November 13th and 14th, 2010 there was a global LPO conference held in Delhi, India. 150-200 key execusives from around the world came together to network and discuss ways to enhance the legal outsourcing industry and keep competitive on a global level.

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LPO India in the News

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 LPO India News Issues
Pangea3, an India LPO company, has been sold to Thomson Reuters. Employees with stock options might be compensated well. The sale price is only known to be US$35-40 million, but no exact figure is available. Pangea3 has a US presence for marketing, but is now planning on building onshore delivery centers to emulate the Indian LPO centers.  The ability to offer 24 hour service was one factor.
LPOs and the Music Industry
An India LPO company in Mysore SDD Global Solutions has been able to participate in helping a non-profit organization called Fight The Power Foundation.  Fight The Power is an organization that represents music artists who claim they have been cheated out of royalties owed to them by large record companies.  Many record companies believe that the artists don’t have the resources to sue them.  SDD has also represented Ali G and Borat (Sacha Baron Cohen).  Fight the Power Foundation is being incorporated by rapper Chuck D.
Another buyout of an LPO in India
UnitedLex, founded in 2006 in the U.S. has purchased LawScribe, a Legal Process Outsourcing company.  Lawscribe has its main office in Los Angeles, CA with additional offices in New York and Gurgaon which is near Delhi. Lawscribe focused mainly on document review, intellectual property, corporate transactions and legal research.
Growth in the India LPO Industry
The Indian LPO industry grew by around 40%  during the global economic downturn, and is expected to grow around 26% per year for the next few years.

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An LPO company comes to visit me!

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A Legal Processing Outsourcing company came to visit me!

It was an exciting moment in my life as the manager of an outsourcing directory.  I had spoken to many companies in India and the Philippines on the phone, but I had only met a few programming and web design companies who I had used for my own business needs.  This was a first — a meeting — and an exciting one.  A Legal Process Outsourcing company boss from India took a tour of the United States meeting with their business contacts in various parts of the United States.  There were two gentlemen, both very well spoken. We discussed marketing strategies for their business.  I will omit their names and locations for their privacy.

In any case, we discussed ways to improve their site which looks really nice.  Also, I came up with many ways to promote their overall web presence using SEO techniques. I might be able to find them clients from the U.S. over time as I develop my business presence. I hope that I develop a great relationship with this company.

It is my dream to have a close relationship with many BPO and outsourcing companies in the future. I might pay India a visit in 2013 and visit several different cities. I might visit the Philippines and the United Arab Emirates as well.  It is hard to handle my workload and travel too, but I will find a way once I make many of my processes more streamlined.  Every month I find a new way to make one of my processes just a little bit more effective or efficient, and over time the results are phenominal!

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