India has a safe and stable legal system. Apart from considerations of lower costs and stable governance, a number of Western firms send legal services to India due to the high quality of Indian lawyers who work well under supervision, and are fast learners.
The fact that India holds 37 per-cent of the world’s share of LPO speaks volumes about the expertise of Indian LPO vendors and lawyers.
What’s often not discussed while talking about offshoring law jobs is the role and groundwork laid by India’s democratic ethos and institutions.
One of the reasons Western firms send law jobs to India is because the country provides a competent legal system that works under an independent judiciary.
A strong legal system becomes a necessity for any company that wants to outsource as it reduces risks associated with doing business in a foreign country. Outsourcing companies that send legal jobs or a variety of IT and other services also want to preempt possible litigation and unnecessary costs associated with it.
Had the Indian outsourcing industry, through the nation’s neutral judiciary system, not ensured protection of contractual obligations, it would not have been able to capture the lion’s share of global outsourcing of services, including legal services.
The success of LPO in India can also be ascribed to a key feature of the Indian judiciary that is the relative political non-interference the legal system enjoys. As a matter of fact, there’s strong consensus amongst all political parties in India on the importance of the country’s outsourcing industry. As a result, there’s less probability that political influence will be used in favor of or against a player in the outsourcing industry when it comes to legal services.
This macro environment has made the most of India’s legal education system and the law graduates that come out of the system.
In fact, India’s legal system is highly supportive of international contracts, and its economy is in tune with the new realities of the globalized world. That is why India is capable of providing such agreements.
When Western companies send legal jobs to India, the work is done by top law graduates and experienced lawyers and/or former law professors from some of the best legal outsourcing companies, legal firms and law schools in India.
In fact, some of the best performing LPO firms hire only 1 out of every 900 applicants for associate positions. These associates, in turn, are trained and supervised by respected attorneys of the clients.
Indian legal talent is in demand as India’s legal system is based on the English common law, and its concepts and procedures resemble those of Anglo-Saxon countries. And it is well-known that India’s lawyers are trained in the English language—the universal language of commerce, technology, and law.
Numbers is yet another advantage when companies ship legal services to India. Indian law companies and LPO firms employ more than 200,000 graduates who pass out each year from law schools—five times more than in the U.S.
It has been noticed that legal work done in India is often compared favorably with much of the work done by attorneys at top-tier law firms in the West. In fact legal services provided by Indian LPO firms are beyond what is considered typical “LPO” work.
This is because the average LPO firm involves the client, the supervision provided by it, and the talented and experienced legal professionals to whom companies assign legal work. A combination such as this means both quality assurance and accountability for clients who are in the business of offshoring legal services.
Because of the close involvement of licensed Western attorneys in this legal outsourcing model, clients need not be concerned that their contact is limited to foreign employees on the other end of the planet.
What kind of cost savings can be expected when companies send legal services is one of the topmost questions asked by them before outsourcing.
Sending law jobs to India can result in savings of up to 50 percent or more. The same has been supported by The New York Times. A report in the paper said that “…Some companies say they can reduce certain legal costs by as much as 50 per cent, and receive work that rivals what they can obtain in the U.S. According to Dennis Archer, the President of the American Bar Association, ‘The need to cut costs reaches across many departments, so it should be no surprise that it goes to the legal department as well.’”
The financial advantages of shipping legal services to India are seen not only in the well-known differences between salaries and costs of living among the workforces of the U.S. and India, but also in the price of office space, which is ultimately paid for by a law firm’s clients.