Impact of the US recession on Indian Legal Process Outsourcing

LPO has the potential to become one of the sunshine sectors for the Indian Economy. IT companies, non-outsourcing and non-legal entities, captive and large Indian law firms are expressing interest in it. Right now only about 30% of the top ten Indian BPO vendors have shown interest to enter this segment. But according to industry experts, Most of the giant BPO industries also keenly watching and analyzing the marketing trend to enter this business in fore future.

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.

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.

Liberalization of India's Legal Services Market and the Impact on the Legal Process Outsourcing Industry.

Think big. If you were today to think of some common traits amongst all the iconic brands that we know of, some would be apparent and some would be a little more subtle. There are the more perceptible and easily glorifiable things like think big, operational efficiencies, people culture within the organization and some more jargon you will find in each and every management book.

 

      

There is however always the other side, the side of caution and trepidation which, mostly, only the ones privy to the dialogues behind the doors to the boardrooms know of. There is, almost always, an army like discipline maintained while dealing with the regulators and policymakers.

GATS- The Final Frontier

 

India is a signatory to the General Agreement on Trade in Services (GATS), an organ of the  World Trade Organization (WTO). Being a signatory it

is under an obligation to open up the services sector to all member nations. Legal profession is also taken to be one of the services which is included in GATS and thus once the government takes all the necessary arrangement and which will include necessary amendments to the existing policy framework also.

 

Once this is done firms and corporations would have the assurance of a clear regulation and would be more confident in directly investing and setting up or scaling operations in India as well as utilizing services of the Indian vendors.