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When done correctly, legal outsourcing can work wonders for your firm.
This can potentially increase your income, customer trust, and efficiency. It can even let you expand and save money. However, outsourcing comes with risks that you must consider first.
Businesses jump into hiring a legal outsourcing partner without considering all aspects of it, such as its compatibility with the overall procedure and relevance to the goal and vision of the firm. That is only one of the many mistakes people make before getting a BPO partner.
In this article, we will discuss the different blunders and miscalculations businesses are making. We will also provide solutions and tips on how to overcome them.
What is LPO or Legal Process Outsourcing?
Legal process outsourcing, or LPO, is a well-known business strategy. It is a small but growing segment of the global legal industry.
With LPO, you are hiring a third party to handle some tasks for your firm. And these tasks are exclusive to legal practices.
However, not all services outsourced by a legal firm are LPO. For example, they can get a customer service BPO. However, that is not automatically part of the legal process of outsourcing services. Not unless you hire a team of agents to transcribe court recordings.
LPO is the answer to the growing cost of operation and shortage of skilled labor. Even more so, many firms agree that working with one provider for legal resources improves efficiency and reliability, allowing them to cut their overheads.
Types of LPO
The significant advantages it has in allowing firms to develop their in-house capabilities and overcome problems connected with alternative forms of delivering legal services might be credited to the tremendous increase in legal outsourcing.
It’s one of the world’s fastest-growing businesses, with tremendous potential for the coming years, and its popularity among corporate legal departments and law firms is expanding by the day.
Here are the different types of LPO:
- Secretarial services, including presentations
- Drafting and reviewing contracts
- Legal publishing services
- Market and business research
- Reviewing documents, including e-discovery
- Form completion and information population like tax forms
- Administrative services like billing and accounting
- Litigation support
Pros of Getting a Legal Process Outsourcing
Before anything else, let us discuss the importance of recognizing the difference between legal outsourcing and insourcing.
In simpler terms, insourcing means employing local lawyers to handle specific tasks, such as documentation and court appearance. On the other hand, outsourcing means hiring affordable overseas labor to complete tasks remotely.
Usually, insourcing involves the firm assigning a project to a person within the company instead of hiring an outside employee. It also means utilizing developed resources within the organization to perform tasks or achieve a goal.
Moreover, outsourcing uses the developed workforce of an outside organization to perform the work given to them. Legal practitioner avail of their services for the following reasons:
- Affordable
- Increased business network
- Flexibility
- Access to a talented workforce
- Faster in-hand dates
- Safe and secure data protection
- Better client relation
It is vital to know about these approaches before getting an LPO partner to assess which strategy works better for you.
Do you want to save money and hire an outside employee? Or do you trust your people enough to create a new line of work? These are the things you need to ponder.
Legal Process Outsourcing or LPO
Here are the most common services under LPO:
- Legal Transcription Services
- Legal Collection Services
- Legal Research Support Services
- Legal Appointment Setting Services
- Legal Research Services
- Legal Intake Answering Services
Some LPO services may also fall under BPO or KPO. For example, a legal intake answering service is both a BPO and an LPO service. And legal research or e-discovery is also a KPO service.
6 Legal Process Outsourcing Mistakes Businesses are Making
We already know what LPO means and how it deviates from other outsourcing services. We will now discuss why people fail to utilize their full potential.
Legal Process Outsourcing is a powerful tool. But businesses make miscalculations before getting it. So here are six common Legal Process Outsourcing mistakes and some quick tips on overcoming them.
MISTAKES |
WHY? |
HOW TO FIX IT? |
1. Not evaluating the quality and reliability of the company. |
An unreliable LPO partner may cause more harm to your company.
Just imagine them blundering and misleading your top clients. Why do you even need to hire them if they are not trustworthy enough to take calls? |
A good outsourcing firm must have a good track record. Check for their credentials and certificates. If a company is ISO 27001:2013-certified and HIPAA-compliant, it is a good sign that they can give you what you want and more. |
2. Ignoring the hiring and training policies |
Ignoring how your LPO partner conducts training and hiring is a mistake that big and small companies often make.
It is because your agents are your front liners. If they fail, you fail as a business as well. |
The best way to fix this is to overlook their training. You can also test them from time to time. Or you can set a KPI to measure the acceptable performance benchmark. |
3. Disregarding the LPO’s Financial Health |
LPO is not a band-aid solution.
You must commit to it in the long term to utilize its full potential. That is why you must consider the company’s financial health. How can it help you in the long run if it is not doing well? |
Get a firm that has been in the industry for a long time. Also, look for firms like Magellan Solutions that will give you a free 60-minute consultation that you can use to check the company out. It is an easy and fast way to assess the financial health of your outsourcing partner. |
4. Not outsourcing to the Philippines |
e-businesses do not even consider where they are outsourcing.
They do not know that most clients prefer neutral accents, professionals, and Filipinos. |
The Philippines is one of the best LPO centers all over the world. Filipinos pride themselves as flexible, literate, and fluent individuals who can help you achieve your business goals. Plus, it also helps you save money since outsourcing is affordable in the country. |
5. Getting an unrecognizable LPO firm |
Why settle for businesses that people are not familiar with?
It will only spell trouble, as searchability is essential in establishing trust with your client. If they cannot ascertain that your partner is legit, they might lose confidence in your law firm. |
An easy fix is not to think twice about getting a well-known LPO firm. By searching “legal process outsourcing” or “legal outsourcing services,” you will find the best BPO and LPO firms. |
6. Disregarding LPO’s flexibility |
refers to the ways you can serve your clients.
Some businesses can cater to inquiries 24/7, while others offer various services. That is why disregarding your partner’s flexibility is a huge mistake, as it takes away growth opportunities. |
Choose an LPO partner that can give you the flexibility you need. A good LPO can offer all kinds of services, from after-hours services to lead generation. Flexibility allows you to level the playing field with larger companies. So, utilizing it as much as possible is a must. |
The Best LPO in the Philippines
Embracing legal outsourcing with Magellan Solutions can transform the efficiency and effectiveness of your legal operations.
Magellan Solutions has a proven track record, with over 17 years of industry experience in Legal Process Outsourcing. Our company is ISO 27001:2013-certified and HIPAA-compliant, so we guarantee high-quality service and expertise.
At Magellan Solutions, we make sure that our agents have the necessary tools, equipment, and knowledge to serve clients efficiently.
Contact us now, and we shall discuss how our company can help your business.
Complete the contact form below and get your 60-minute free business consultation with us today!
