Allen & Overy embraces India legal process outsourcing (LPO)

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Allen & Overy (A&O) has agreed to outsource its legal work to Mumbai and New York with legal process outsourcing (LPO) company Integreon, becoming the first magic circle firm to embrace the LPO model, according to The Lawyer magazine.

The Lawyer reported that the firm has partnered with LPO provider Integreon to outsource basic litigation document review to teams in New York and Mumbai, in what could generate a 30-50 per cent cost saving.

A&O litigation support specialist Vince Neicho said: “We put together a suite of options [for clients] including offshore outsourcing, a reduced paralegal rate in our London office and the [improved] use of technology.”

A&O has chosen to work with Integreon on a case-by-case basis, rather than signing a deal for a dedicated team.

Neicho explained to The Lawyer: “The main reason is the fluctuation in the workload, we might go a few weeks with nothing at all, or a client might opt for another of our suite of options. Outsourcing offshore is new in this country, we’ve some clients that may feel uncomfortable with it. If we put our own captive team together and push outsourcing it’s not good for them or for us.”

This is the first time that a magic circle firm has outsourced legal work. Rivals Clifford Chance and Linklaters have both outsourced support functions, while Clifford Chance has a wholly-owned Indian subsidiary that carries out document review work and other legal support tasks previously undertaken by onshore paralegals and trainees.

A&O has a formal best friends relationship with Trilegal.

Neicho’s comments were made at The Lawyer’s inaugural conference on Legal Process Outsourcing and Offshoring and come as more law firms chose to outsource lower-value work in a response to requests from clients to bring down costs.

UK firm Simmons & Simmons also signed up with Integreon last month to outsource legal work to Mumbai.

Managing attorney at mining giant Rio Tinto Leah Cooper took the radical move earlier this year of outsourcing legal work to a team of 15 Indian-based lawyers sourced by LPO CPA Global. No in-house jobs have been lost as a result but, with less work going out to panel firms, it is estimated to have saved the company around $8m (£4.8m).

Earlier this year The Lawyer revealed that Pinsent Masons had become the first firm to outsource work normally done by UK-based lawyers to a dedicated offshore team through a deal with LPO company Exigent (22 June 2009). The firm now plans to expand this further (28 September 2009).

Last month Clarke Willmott laumched an LPO pilot in its Birmingham office with the aim of rolling it out across its UK network (12 October 2009).

The trend towards LPO and offshoring has gathered such momentum that even one of the City’s more traditional names - Slaughter and May - has been in talks over outsourcing legal work. This is believed to have been triggered by a request from a particular client (5 October 2009).

This is an edited version of an article that first appeared on TheLawyer.com

Comments

Rahul 21 Nov 2009, 00:38
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When you talk about "Best Friends" relationships, what exactly happens here? Does the Indian friend refer clients to UK and the UK friend then refers some clients to India?? What sort of UK work will the Indian corporations have in the first place?
enormous 25 Nov 2009, 09:25
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document review work! wouldn't that be providing "legal services" - good way of back door entry to Indian legal profession!
Anonymous guest 18 Mar 2010, 12:57
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In my opinion, it's really a great news for Indians. I agree LPO helps companies to reduce costs especially during this downturn. For Indiah, it helps increase a bit their economy and for people to have jobs.

Phil
Anonymous guest 25 Mar 2010, 23:19
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That's interesting that the trend towards LPO and offshoring has gathered such momentum that even one of the City’s more traditional names Slaughter and May has been in talks over outsourcing legal work. Nice blog.

Regards: IT Services
Anonymous guest 22 Nov 2010, 06:29
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I have been reading a lot about Integreon and it seems as though they are leading the industry in outsourcing work. I have been reading a lot about law firms making the switch to outsourcing, and most of them seem happy. Finding the right outsourcing company is crucial for having a good outsourcing experience. Integreon is really pulling ahead in this market if they are the first outsourcing company to do work for a magic circle law firm. Great post, thanks for the information.