In the last quarter of 2008 America faces economic challenges never imagined even a few months ago. How will businesses manage and survive the limitations on credit, demand and growth? How does the economic downturn impact lawyers and law firms which service the business community?
It is an obvious fact that businesses can only look at modifying two revenue streams, income and expenses, in order to increase profitability. If income is down and not expected to increase markedly in the near term, clients of law firms will take the hatchet to expenses in order to survive. Legal fees will be under extreme scrutiny. Legal outsourcing, while still a nascent industry, is gaining momentum, being considered in more corporate boardrooms best staffing agency in India. As the pressures to outsource build, lawyers ponder whether they should embrace outsourcing legal work offshore or resist it. In the face of global economic challenges coupled with the increasing loss of American jobs why would a U. S. law firm want to even consider legal outsourcing? Are there valid reasons why targeted legal outsourcing should be considered by every U. S. law firm?
Several weeks ago I received an email from a lawyer who was considering outsourcing some of the legal work of his law firm. Facing resistance and challenges from many in his law firm who wanted to maintain the status quo, he asked for my advice as to what he should tell his partners. Why should the firm outsource legal work offshore, a practice seen by some as adventuresome and risky, instead of staying the course, doing it “the way we have always done it. ” I answered him with the top ten reasons why every law firm should consider selective legal outsourcing:
Outsourcing some legal work to qualified providers in India will result in significantly lower overhead to the outsourcing law firm. In assessing the comparative costs the law firm will be wise to carefully calculate the real costs of employing one lawyer or paralegal. Those costs include salary and bonus, health insurance, vacation and holiday pay, sick time expense, FICA, office space and equipment for the lawyer, paralegal and secretarial staff assigned to that lawyer, pension and profit sharing, auto and parking expense, CLE seminar costs, and other employment benefits such as disability and life insurance. The real annual cost of one lawyer earning a base annual salary of $150, 000-$175, 000 is more likely in the range of $250, 000 to $300, 000 per year. NONE of these customary expenses accrue to a law firm utilizing supplemental offshore legal providers. Indian BPO growth has stood strong through two decades. Since the genesis of the business process outsourcing industry, India ranks as one leading destination engaged in offering a range of customized solutions to several companies based worldwide. Keep an eye on the next few lines to learn about the benefits of BPO outsourcing in India.
First, India possesses an advanced and well-developed higher education system. This accounts for well-educated human resources to meet the diverse industrial requirements. Each year 85, 000 graduates pass out and they can boast of gaining a solid reputation in the global business community.
When it is about benefits, business process outsourcing to this Asian sub-continent can bring you a reduction in your operational costs. By availing services, the American firms will be able to reduce costs up to 40 to 50%. This offers a great opportunity for business organizations to stand out in the on-going market competition.
The third major benefit of outsourcing to India is the quality and meticulous work. Employees of the Indian companies strive for quality and ensure proper maintenance of the customer data. This also ensures maintaining the accuracy level at all times.
The fourth benefit of BPO outsourcing to India is that the European nations will be able to avail computer literate workers who speak English. The educated and computer literate workers make them a viable resource to carry out different business services. This also makes Indian workers the most cost-effective labor force compared to the other outsourcing countries.
BPO outsourcing in India can help to run a business effectively. The time difference between India and the united states offers a good opportunity for the Indian companies to carry out business smoothly. The quick turnaround time is obviously a clear advantage for companies based in the united states.
Outsourcing is a favorable option as India includes the largest telecommunication network in Asia. The telecommunication network of India counts around 25 million of the telephone cables that is expanding constantly. Most companies, government agencies and private owners in India have already installed around 8500 VSATs all over India. This makes them easier to collect all kinds of essential information or data.
Sharing of business risks also stands as another major reason for hiring the outsourcing staff from the Indian sub continent. If you choose to delegate tasks to the Indian partners, then you can minimize staffing problems. You will not have to appoint people on your own. Your Indian outsourcing partner will be present for you 24/7 to ensure continuous support for the growth and prosperity of your business.