Indian Lpos Simplifying Us Business Complexities

MUMBAI, INDIA: When you lose something on one hand you are destined to get something else on the other. This simple law of nature seems to be relevant in the case of the impact of the US recession on Indian industries. Though the disaster in the US economy has badly hit the Indian IT sector, it is also giving ample business scope for the Legal Processing Outsourcing (LPOs) segment in the country. With many top monetary firms, investment banks and enterprises declared bankrupt and many more to do same in near future, there's a huge rise in demand for legal expertise and law consultancy services in US. According to a survey conducted by law department consultant Rees Morrison and American Lawyer editor Aric Press, the US law departments will spend about US$ 2 billion on legal outsourcing by 2013. Further, it says, US corporate law departments will spend about 3 per cent of their budget on legal outsourcing, including the LPO. In this context, Indian LPO industry will play a major role in fulfilling this legal outsourcing demand, and already it is witnessing rise in the work flow amount in past few months. The LPO scope According to Delhi-based UnitedLex's CEO, Anup Bhasin, any financial downturn offers scope for legal consulting services and expertise. "In such situation, most companies irrespective of size, at first checks and reviews its risk factors, contracts, project terms and conditions. The same trend is seen in US too," says Bhasin. Bhasin points that checks are vital to re-evaluate or re-assess the corporate risks affecting businesses. H "It's a key factor behind the legal services demand surge, leading to Indian LPOs' growth. Other factors include the foreclosure procedures, mortgage and bankruptcy suits along with the compliance norms." Economic brain power In the US, hiring of any sort of legal consultancy and services such as foreclosures, mortgages suits and legal documentations, still is an expensive affair. The law firms and attorneys bill the legal services on timely basis. "While businesses getting slow and revenues slumping, the US companies are scouting for cost efficient legal services without compromising on quality," comments Sanjay Kamlani, co-founder and co-CEO, Pangea3. Further he says, "Law firms abroad bill their clients on hourly basis, while in India, the offering is differently packaged, hence more business-friendly as the LPOs work around fixed billing rates or rate per project or per document." Hence outsourcing legal services remains the best option for foreign companies in terms of saving cost to the tune of 50 to 90 per cent. LPOs' banking areas While, mortgages, bad debts, personal and home loans were the main culprits in busting the fiscal crisis, its consequences led companies' mergers and acquisitions, followed by government bailouts. Though it might sound simple, it involves highly complex legal procedures. With downturn causing enormous losses, firms, organizations and even individual are on spree of filing litigation. "The Share Holder Derivate Litigation and US government's Trouble Asset Relief Proposal (TARP) are the new areas, where Indian LPOs can focus more and expect new business," Bhasin explains. Mergers and acquisitions, now becoming a key business survival rule, work related to due-diligence is on high demand. Also with the more litigation against banks and financial firms, all correspondence, documentations and marketing transactions undergoes scan for e-recovery. Even due-diligence and e-recovery works are charged heftily on hourly basis in US and now 'cost' being sensitive issue, "Indian LPOs can bank on this high legal services demand and expect more business ahead," Kamlani concludes.

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