Legal process outsourcing has become a significantly growing trend worldwide. Law firms initially overlooked LPO due to the potential fraud risks, but the industry has periodically thrived. Attorneys can outsource legal work to free up their time and focus on critical matters.
There is no time off when it comes to legal affairs. Attorneys are overwhelmed with paperwork. They also struggle to find enough time to concentrate on case strategies. Given the importance of legal matters, a decline in demand seems unlikely. It’s always one case after another, leading to consistent work and burnout.
Efficiency varies among individuals and law firms. However, one cannot overlook the fact that everyone needs rest to prepare for something greater. Law firms need time to focus on their growth, which can be challenging due to the overwhelming amount of paperwork.
Let’s explore the benefits of legal process outsourcing services for firms and how you can find the best agencies to outsource legal processes!
What is Legal Process Outsourcing?
LPO is the process of delegating specific legal tasks, responsibilities, and processes to external service providers. These service providers consist of virtual legal assistants who handle law firms’ operational tasks in a significantly cost-effective manner. Services encompass all aspects, including:
A legal clerk can manage emails, draft legal documents (briefs, motions, contracts, pleadings, notices, etc.), create cases in the CMS, conduct research, perform e-filing, review cases and documents, schedule meetings, provide post-litigation support, and handle all other administrative tasks. This allows attorneys to gain ample opportunity to prepare cases, thereby increasing their chances of winning.
Core Principles of Legal Process Outsourcing
Here’s what makes legal process outsourcing work well for law firms of all sizes.
Cost Efficiency
Legal process outsourcing saves firms a significant amount of money. Outsourcing routine tasks means you don’t need to hire a full-time on-site team to handle work. Firms can cut costs by 30-50%, depending on the region they outsource to.
Countries with a currency difference offer skilled labor for a fraction of what you’d pay in-house. All of your savings are reinvested into higher-priority projects, such as complex legal work that requires specialized expertise.
Specialization
Legal process outsourcing brings in specialists who focus on a single task, and they excel at it. Think contract review, PIP law, or litigation support. These providers focus on specific tasks and refine their skills to a fine point.
This is what makes outsourcing work: You get the top skills in the field without hiring a full-time specialist.
Scalability
Workloads change rapidly, and cases can accumulate quickly. Some weeks are light and others are swamped. Legal BPO lets you scale your resources up or down to match demand.
Need 50 more hours of contract review in a week? Done. A sudden increase in litigation cases? No problem. You get exactly what you need, when you need it, without hiring temporary staff or scrambling to reorganize.
Access to Technology and Tools
Legal process outsourcing is also bringing high-end tech to the table. Tools for managing contracts, reviewing documents, and doing e-discovery make everything quicker and smoother. Companies like Hazen Tech utilize their developed AI tools to enhance work accuracy and eliminate the possibility of errors.
Setting up these systems in-house would be prohibitively expensive and require ongoing maintenance. Providers already have these tools in place. They bring efficiency, saving you time and effort.
Quality Assurance
Outsourcing doesn’t mean lowering quality. LPO providers have strict quality control systems in place. They’re aware that they’re handling sensitive legal information.
SLAs and regular reviews ensure that the work meets the highest standards. There’s no such thing as “good enough” here. If the work isn’t up to par, it gets sent back. It’s simple. You don’t trade quality for cost savings.
Confidentiality and Data Security
Handling sensitive data is the heart of legal work. Outsourcing to foreign countries doesn’t mean sacrificing security. LPO providers understand this and implement stringent measures to protect confidential information.
Contracts are clear about the security protocols in place. Encryption, firewalls, and strict access controls keep everything safe. The best aspect of legal process outsourcing is its transparency. It allows you to supervise everything!
Focus on Core Legal Work
When you offload routine tasks, your in-house team can focus on the real, high-value work. The stuff that drives results and builds client relationships. Legal process outsourcing enables you to eliminate time-consuming tasks, such as document review.
That’s when your legal department becomes more strategic. Firms stop drowning in paperwork and focus on making things happen.
Risk Management
LPO manages risks effectively. Clear contracts, regular communication, and effective monitoring systems help avoid pitfalls such as poor-quality work or data breaches. However, your law firm would need to remain involved to monitor the work and manage the relationship. If you handle it right, the risks are significantly low, and the rewards are high.
Time Zone and Global Access
Time zones are a hidden advantage in legal process outsourcing. Outsourcing enables firms to continue operating after hours. When your office closes, your provider steps in to fill the gap.
They’re in a different time zone, so your legal work gets done around the clock. This leads to faster turnaround times. So, tight deadlines are no longer a problem. Legal process outsourcing helps meet them, regardless of the time of day.
Legal tasks piling up? Let us take the burden off your shoulders. Our Legal Process Outsourcing services handle time-consuming details, so you can save money, reduce stress, and focus on growing your business.
The Growing Trend of Legal Process Outsourcing
Legal outsourcing delivers results, as evidenced by the industry’s growing trend. The global LPO market was valued at approximately $19.9 billion in 2023 and is projected to reach $147.8 billion by 2032, with a compound annual growth rate (CAGR) of 25%. In the United States alone, the LPO market was valued at $10.4 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 30.6%, reaching $114.9 billion by 2032.
About 70% of law firm leaders reported outsourcing some or all of their back-office and administrative functions, up from 56% in 2018. The American Bar Association states that legal assistants can efficiently handle approximately 50% of an attorney’s tasks.
Factors Affecting the Legal Process Outsourcing Market
The industry is experiencing growth, and the following factors are contributing to its expansion.
Shifting Client Expectations
Legal clients demand faster and more transparent service. Virtual legal assistants respond with detailed reporting, real-time communication, and measurable outcomes. This transforms relationships into dynamic partnerships built on responsiveness and ownership.
Evolving Regulatory Environments
Regulatory frameworks change frequently across jurisdictions. Legal process outsourcing companies tackle this by employing dedicated legal researchers who closely monitor evolving compliance standards and regulations. This enables law firms to adapt quickly and minimize exposure to legal and reputational risks.
Rising Competition
Alternative legal service providers, consulting firms, and legal tech startups intensify competition. LPO providers respond through service diversification, faster delivery models, and customized client services that are not just limited to cost efficiency.
Technological Disruption
Artificial intelligence, blockchain, and advanced e-discovery platforms have also reshaped legal processes. LPO companies implement these tools to enhance service speed and accuracy. This enables law firms to stay competitive in the face of constant technological shifts.
Demand for Flexible Engagement Models
LPO clients prefer customized services over rigid contracts. Providers offer project-based, retainer, and hybrid models. This enables firms to adjust their capacity and support accordingly based on changing case loads and business priorities.
Focus on Relationship Management
Transactional engagements no longer suffice. Leading legal process outsourcing firms invest in client management teams, performance tracking, and regular strategic reviews to build long-term partnerships based on trust and continuous improvement.
Geographic Shifts
Traditional outsourcing hubs face competition from emerging markets in Eastern Europe and Latin America. LPO providers expand their global footprint to offer multilingual, culturally aware legal services that cater to client preferences and mitigate geopolitical risks.
Future Trends of the Legal Process Outsourcing Market
The future of the Legal process outsourcing market appears vibrant, driven by dynamic trends that are reshaping the landscape of legal services. As companies look ahead, several key trends stand poised to drive innovation and growth in this sector.
AI and Tech Integration:
Artificial intelligence is revolutionizing legal process outsourcing services by automating the analysis and management of vast legal documents and data with unprecedented precision. This allows legal professionals to focus on strategic decision-making, leveraging AI to enhance productivity and accuracy in routine tasks.
Hybrid Models:
The adoption of hybrid work environments is reshaping how virtual legal assistants operate, blending remote and on-site workflows. This model enhances flexibility and accessibility, attracting a broader spectrum of talent and enabling your legal support staff to respond more effectively to client needs.
Compliance Needs:
As global regulations become increasingly complex, the demand for rigorous compliance services is growing. Legal process outsourcing companies are expanding their capabilities to provide comprehensive compliance solutions that ensure clients adhere to international standards and avoid regulatory pitfalls.
Personalization:
Tailored legal solutions are now a prerequisite in the legal process outsourcing industry. Firms are increasingly utilizing advanced data analytics to deliver customized services that closely align with the specific business objectives and legal requirements of each client.
Cross-Border Litigation:
With the rise of global commerce, cross-border legal disputes are becoming more common. Legal process outsourcing companies are enhancing their capabilities to manage litigation that spans multiple jurisdictions, offering expertise in various legal systems and languages.
Data Analytics:
Virtual legal assistants are increasingly leveraging data analytics to inform their services, providing clients with insights that support more informed decision-making.
This trend enables a more proactive approach to challenges, allowing for the prediction of outcomes and the optimization of strategies based on comprehensive data analysis.
Global Expansion:
The legal process outsourcing sector is experiencing rapid global expansion as firms seek to meet the growing demand for legal services worldwide. This expansion not only extends their reach but also enriches their understanding of diverse legal environments, strengthening their ability to serve multinational clients.
Benefits of Outsourcing Legal Process
Outsourcing legal processes comes with its benefits. Here’s why you should go for it:
Cost Effective
Outsourcing is very cost-effective. Consider this: hiring full-time or part-time in-house paralegals requires competitive salaries, benefits, and other resources. On the other hand, a remote clerk will perform the same job efficiently but at half or one-third the price.
A recent analysis by Hazen Tech showed that hiring one assistant can save $30,000 annually, process 3,168 cases, and manage 25,344 emails. In contrast, ten teams can save $1.5 million, process 158,400 cases, and handle 1.2 million emails. The amount saved can be used to grow your firm.
Faster Turnaround
When a team is dedicated to a specific task, you can expect a faster turnaround. Legal process outsourcing companies comprise multiple teams, each with approximately 10 members. Every team is responsible for one service, such as legal drafting.
This organization ensures teams are not overloaded with work and have sufficient resources to deliver projects within the given timeframe. Also, companies can size up whenever they need additional assistants.
Specialized Expertise
Legal outsourcing companies offer access to a diverse range of legal support professionals with specialized expertise. These assistants specialize in extensive experience, such as legal research, document review, contract management, and liaison tasks.
Instead of relying on a generalist, firms can assign tasks to experts who specialize in specific areas of law, such as personal injury protection, property damage, or corporate law. LPO providers also stay updated on the latest legal technologies, AI tools, and industry regulations to ensure every outsourced task is handled perfectly.
Reduced Administrative Burden
You might be drowning in administrative work right now, but your legal assistants can manage it. On average, firms spend 40% – 50% of their time on administrative tasks and the remaining on client work.
Outsourcing legal processes can save you half of your time, which can be used for strategising and other client-related work. As a result, your firm progresses and clients are satisfied.
Access to Advanced Technology
Some legal process outsourcing companies, such as Hazen Tech, have access to advanced technologies that they utilize during outsourced legal work. This includes AI integration, Microsoft 360 solutions, and similar tools to enhance work quality.
This approach significantly reduces the chances of errors. Furthermore, it automates several processes, enabling legal assistants to manage a greater number of projects than usual.
How To Find The Best LPO Agency?
Finding the right legal process outsourcing agency is crucial for ensuring efficiency, cost savings, and high-quality legal support. Here’s what to look for:
Industry Experience
Choose an agency with a strong track record in legal process outsourcing. Look for providers that have been in the industry for years and have worked with reputable law firms. An experienced agency understands legal complexities and ensures compliance with regulations.
Range of Services
Not all LPO agencies offer the same services. Some focus on legal research and drafting, while others support end-to-end litigation. Assess your firm’s needs and find an agency that offers comprehensive solutions, including pre-litigation support, e-filing, case management, and administrative assistance.
Data Security & Compliance
Legal work involves confidential client information. A reputable legal process outsourcing agency should have robust security measures, including encrypted data storage, secure communication channels, and adherence to industry standards such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA). Always ask about their security protocols before outsourcing any work.
Scalability & Flexibility
Your workload fluctuates, and some months are busier than others. A reliable LPO agency should offer flexible engagement models, allowing you to scale up or down as needed. Whether you need one legal assistant or an entire team, the agency should be able to adjust accordingly.
Technology Integration
Advanced legal process outsourcing agencies leverage AI tools, document automation, and cloud-based case management systems to improve efficiency. Agencies like Hazen Tech utilize Microsoft 360 solutions and AI-powered tools to streamline workflows. Partnering with a tech-savvy agency enhances accuracy and speeds up legal processes.
Freelance Virtual Assistants VS Legal Process Outsourcing Companies
Choosing between a freelance virtual assistant and a legal process outsourcing company can be a challenging decision. Each choice brings its unique flavor to the business table, like deciding between a bespoke suit and a department store ensemble. Let’s break it down.
Freelance virtual assistants are the solo artists of the work world. Picture them as indie musicians, each playing their tune, distinct and personal. They thrive on flexibility, and that makes them ideal for startups or smaller businesses that require a personalized touch. You can expect a freelance virtual assistant to charge anywhere from $15 to $50 per hour, depending on their skills and the complexity of your project.
On the flip side, LPO companies are the orchestras of the outsourcing world. They offer a comprehensive range of services, from routine document preparation to comprehensive legal support, all under one roof. This can be a boon for larger organizations looking for a broad skill set and scalability. Think of them as a one-stop shop. Typically, working with a virtual legal assistant starts at around $25 per hour and can increase to hundreds of dollars per hour for specialized legal services.
In 2022, the global outsourcing market for legal services reached approximately $13.67 billion. This number is expected to increase at a compound annual growth rate (CAGR) of 31.4% from 2023 to 2030.
Therefore, the choice ultimately depends on your specific needs. LPO companies are a better choice overall due to their consistent quality checks, monthly employee training, organized work culture, access to technology, and robust data security.
How To Begin?
It’s not easy to trust someone to manage something as sensitive as legal processes, but there’s an easy way to do it.
Step 1: Find an LPO Agency
There are plenty of companies available on the internet. Luckily, you’re already on one! Hazen Tech was awarded the 2024 Clutch Award for the Top Legal Outsourcing Company. You can evaluate a service provider based on the tips listed above. Once you’ve made up your mind, it’s time for step 2.
Step 2: Schedule a Meeting
Things get more apparent when you discuss the scenario with the service provider. You can share your concerns, such as data security, payment, team skills, portfolio, and other essential information that you think is necessary for you to know.
The meeting will provide you with valuable insights into the legal process outsourcing company. After your concerns have been resolved, proceed to the next step.
Step 3: Start Trial Based
You don’t necessarily have to commit to a long-term partnership. Instead, starting by outsourcing only one service, such as legal drafting, is a better approach. Also, you can set a probationary period for a couple of months to better evaluate the service provider’s expertise. If you’re satisfied, you can permanently outsource more services to them.
Step 4: Sign a Contract
After careful negotiations, finalizing the budget, and both parties agreeing on the project, it’s time to sign the contract. Before signing, review the documents to ensure everything is accurately stated.
Have questions or ready to take the next step? We’re just a click away. Book a meeting with us, and let’s explore how we can work together to simplify your legal processes and boost your business.
Communication is Key
If you’re wondering what the root cause of every misconception, error, or dispute is, it’s a lack of transparency in communication. When you’re outsourcing legal processes, you will need a dedicated resource to supervise the work being done by the legal process outsourcing company.
Regular meetings, listening to problems, solving them together, receiving daily updates, encouraging suggestions, maintaining an open-door policy, and treating your legal assistants kindly promote a healthy environment. On the other hand, an unhealthy and strict environment likely leads to assistants hiding mistakes and other information that you need to know. So, open communication is very crucial for the smooth functioning of the outsourcing process.
Doing It Yourself VS Outsourcing to Hazen Tech
The comparison is already clear. You’re an attorney whose job is to handle lawsuits and win cases for clients. Your duties don’t revolve around managing files, documentation, paperwork, and other clerical work. The problem in the legal industry is the high importance of documents that pile up and consume time, which could have been otherwise spent on more strategic work.
Hazen Tech, on the other hand, is a Clutch 2024 award-winning top legal process outsourcing company. They leverage AI and the latest technological tools to organize their work, ensure quality, and stay ahead of the competition. What’s unique about Hazen Tech is their extensive experience in PIP and Property Damage law, working with some of the most reputable law firms in the U.S. They have a comprehensive team that’s regularly trained, readily available, ensures confidentiality, and maintains non-disclosure agreements.
Wrapping Up
Legal process outsourcing enables law firms to reduce their workloads, focus on critical legal tasks, and take on more cases without overexertion. Choosing the right outsourcing partner takes time, but the long-term advantages make it worthwhile.
Attorneys can save hours on administrative work, improve case preparation, and expand their firms without unnecessary stress. As the legal industry continues to grow, outsourcing remains a smart move for firms aiming to stay competitive.
