America faces economic challenges unimagined even a few months ago during the last quarter of 2008. How will enterprises manage and survive the credit, demand and growth constraints? How does the downturn affect lawyers and law firms that serve the business community? Have a look at law firm.
It is an obvious fact that companies can only look to modify two revenue streams, income and expenditure, in order to increase profitability. If revenue is down and not expected to rise sharply in the near term, law firms’ clients will take the hatchet to expenses to survive. Legal fees are being subject to extreme scrutiny. Legal outsourcing is gaining momentum while still a nascent industry, and is being considered in more corporate boardrooms. As the pressure to outsource builds, lawyers are pondering whether to embrace or resist outsourcing of legal work offshore. Faced with global economic challenges coupled with the increasing loss of American jobs, why would a U.S. law firm even want to consider outsourcing legislation? Are there valid reasons why every US law firm should consider targeted legal outsourcing?
Several weeks ago, I got an email from an attorney who was considering outsourcing some of his law firm’s legal work. Faced with the resistance and challenges of many in his law firm who wanted to maintain the status quo, he asked my advice on what to tell his partners about. Why should the firm outsource legal work offshore, a practise some see as adventurous and risky, rather than staying the course, doing it “the way we’ve always done it.” I answered him with the top ten reasons why each law firm should consider selective legal outsourcing:
Outsourcing certain legal work to qualified providers in India will result in significantly lower overhead for the law firm that outsources. The law firm will be wise to carefully calculate the actual costs of employing one lawyer or paralegal when assessing the comparative costs. These costs include salaries and bonuses, health insurance, holiday and holiday pay, sick time expenses, FICA, lawyer’s office space and equipment, paralegal and secretarial staff assigned to that lawyer, pension and profit sharing, car and parking expenses, CLE seminar costs, and other employment benefits such as disability and life insurance.
40 N Center St #200, Mesa, AZ 85201, United States