The Top Eight Reasons for Outsourcing

"Outsourcing” is the latest buzzword in global economy today, but it also makes good business sense for a lot of law firms. A lot is being written on the subject but the benefits of outsourcing far outweigh the reasons why the law firms should not opt for it. The top 8 reasons for outsourcing are:

1. Savings in Labor Cost - This is perhaps the most important reason why law firms should opt for outsourcing some of their activities. The cost of labor is extremely high and creates a huge expense for the law firms. If the same jobs were to be done at a far lower price by equally skilled personnel then it is definitely advantageous.

2. Communications - With the improvement in telecommunication networks and lowering of telecom costs across the world, outsourcing as an option provides round the clock services to law firms without putting too much of a strain on the existing manpower.

3. Speed - As a result of better communications, outsourcing has helped a number of law firms reduce their turn around times by taking advantage of the time difference between US and India. Your law firm can reduce the turn around time and concentrate on acquiring more cases.

4. Move to Higher Segments - The move to outsource will help your law firm to move to higher segments of the value added chain as your law firm will be free of some tasks that will be outsourced.

5. Profitable Use of In-house Resources - Law Firms are attempting to make the most of their in-house talent pool. Expertise and experience are definitely in short supply, much in demand and more importantly, expensive. Outsourcing will help your law firm to resolve this dilemma and free a large pool of in house resources for other work.

6. Focus to Accelerate Business Transformation - This is done by passing on various specialized jobs to the outsourced vendor and focusing on the core business. This results in more time spent working on strategic issues for business transformation and implementation of the same.

7. Access to Skill Sets and World-wide Capabilities - The growing shortage and increased cost of skilled attorneys and para-legals in the US has prompted the law firms to look elsewhere for these skill sets. Outsourcing enables your law firm to access a pool of attorneys and para-legals equipped with a range of skills.

8. Minimize Investment Risks - Law firms make large investments in their operations and have to deal with a number of economic and political changes, which may prove risky for their businesses. By outsourcing, the law firms are able to reduce some of the associated risks because our firm also shares in some of the costs. This reduces the cost burden on the outsourcing law firms.