legal outsourcing - alm webinar - may

7/29/2019 Legal Outsourcing - ALM Webinar - May

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Legal Outsourcing

Opportunities and IssuesALM Web Audio Conference May 16, 2007

Ron Friedmann

Prism Legal Consulting, Inc.

[email protected] 703.527.2381
mailto:[email protected]:[email protected]


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Agenda

Why Outsource? Delegation v. Outsourcing

Legal Outsourcing Today

Guidelines for Success

The Future


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Why Outsource

Cost Skills availability

Quality

Turnaround


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Delegation v. Outsourcing


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How Lawyers Work

Specialization (Adam Smith) Efficiency, effectiveness

Domain expertise

Delegation Common once a firm has more than a

few lawyers

Legal and non-legal tasks


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Administrative Delegation

Secretaries Landlord

Facilities

Copy center, mail room, food service

Payroll service

Benefits administration

Secretarial


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Substantive Delegation

Finders, Minders, Grinders Find business

Mind relations

Grind out work Lawyers already delegate

In larger firms Granular specialization

Cross-office work

Human resources may be far away


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Delegation v. Outsourcing

Admin The line has been crossed long ago

Substantive

Delegation outside the firm is not sodifferent than in the firm

Both require process, control, and QC


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Legal Outsourcing Today


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Administrative Outsourcing

Payroll Insurance and benefits

Document keying

Facilities

Travel

Catering

IT

Secretarial


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Substantive Outsourcing

Objective coding Legal research

E-discovery

Collection

Processing

Hosting

IP support

Contract lawyers


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Domestic Locations

Big cities Small cities

Nearshoring

CBF in Fargo

Orrick operations in WV (insourcing)


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Offshore Locations

Chile Hong Kong

India

Mauritius New Zealand + Australia

Phillipines

Sri Lanka

Source: Outsourced Legal Services, Prism Legal
http://www.prismlegal.com/index.php?option=content&task=view&id=88&Itemid=70http://www.prismlegal.com/index.php?option=content&task=view&id=88&Itemid=70


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Why Offshore?

Talent Availability

Cost

Turnaround


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Offshore Examples

Contracts Dictation + transcription

Document review

Due diligence

IP

Legal research

Litigation support

Secretarial


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Whos Offshoring

Corporations Law firms

Owned, captive, vendor


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Examples

Corporations Accenture, American Express, General

Electric, Microsoft, Morgan Stanley,

Motorola, and Oracle Law firms

Allen & Overy, Clifford Chance, Bickel &Brewer, Milbank, Orrick

Vendors

70 vendors at Prism list
http://www.prismlegal.com/index.php?option=content&task=view&id=88&Itemid=70http://www.prismlegal.com/index.php?option=content&task=view&id=88&Itemid=70


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Guidelines for Success


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Guidelines - 1

Document your requirements Specify deliverables carefully

Fix process before outsourcing

Consider need for SLA Screen and vet suppliers

Processes

Management Reputation + references


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Guidelines - 2

Ramp up slowly Test, test, test

Verify deliverables

Metrics and feedback loops Change management


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Risks

Performance Quality

But compare to alternatives!

Your own lawyers and staff

Domestic providers


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The Future


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Tasks Most Likely to Move

Document review Simple to moderate drafting

Due diligence

More IP


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Limitations

What limits? Talent

Transaction costs


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Indias Edge Goes Beyond Outsourcing

Headline: NY Times, 4/4/07increasingly the jobs of Western white-collar elitesin fields as diverse as investment banking, aircraftengineering and pharmaceutical research have

begun flowing to India and a few other developingcountries

As Indian back offices become more sophisticated,Western companies are finding that large parts of

their work, even high-end tasks, can also be donefrom India.


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Issues

Ethics QC

Marking-up rates

Where is the line?

legal outsourcing - alm webinar - may

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