Global Legal Process Outsourcing Market By Location Offshore Outsourcing, On-shore Outsourcing), By Service (Contract Drafting, Review and Management, Compliance Assistance, E-discovery, and Other Services), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Legal Process Outsourcing Market Overview:

The global legal process outsourcing market is valued at USD 10,152 Million in 2021. It is projected to grow at a CAGR of 32.6% between 2023 and 2032.

Once they have been familiarized with an organization’s business processes, the LPO providers can provide a variety of services including contract drafting, management, eDiscovery review & management compliance assistance, litigation support, and patent support.

LPOs are able to assist organizations with objective coding, gathering and synthesizing information, negotiations, and objective legal research.

Global Legal Process Outsourcing Market Scope:

Location Analysis

The market can be divided into two types based on its location: on-shore or off-shore outsourcing. In 2021, the offshore outsourcing segment was the dominant market and represented more than 77.8% of global revenue. Outsourcing legal activities can help companies manage time and workers effectively.

LPO is a popular option for countries like South Africa, India, and the Philippines. These destinations have a significant time difference from the U.S. and Europe. This time difference allows for a 24/7 workforce. The basic legal framework would be shared by countries that have common law systems.

India and The Philippines are now the leading offshore LPO destinations. The fastest expected growth rate for the on-shore outsourcing segment will be over the forecast period. Because law firms are increasingly recognizing that offshore service providers are more capable than on-shore, outsourcing will gain popularity. Other benefits such as greater control over operations, improved data security, shared regulatory systems, and sophisticated delivery models will positively impact the market for LPO providers on-shore.

Service Analysis

The market can be further divided by services into contract drafting and review, management, compliance assistance (e-discovery), litigation support, patent support, etc. In 2021, the e-discovery market was the dominant segment with a greater than 22.75% share of global revenue.

E-discovery can be a complex and time-consuming task that should only be handled by a qualified technical and legal professional. In the coming years, law firms will need to manage an exponential increase in the amount of electronically stored information. Many companies try to manage eDiscovery internally or through third parties or a combination of both.

For many reasons, law firms are outsourcing e-discovery, including legal technology expertise, lower costs & recovered costs, data security, and quicker & more accurate data. An example of this is the cost of an eDiscovery function. It includes technology implementation, maintenance, employment training, salaries, and other overhead costs. Additional costs associated with deploying software and hardware solutions can run to USD 200,000 per year. LPO will help to reduce the high costs associated with in-house electronic discovery solutions.

Market Segments:

By Location

• Offshore Outsourcing
• On-shore Outsourcing

By Service

• Contract Drafting
• Review and Management
• Compliance Assistance
• E-discovery
• Litigation Support
• Patent Support
• Other Services

Market Dynamics:

Mindcrest Inc. and QuisLex Inc. have expanded their services beyond regulatory investigation support and litigation to include contract management and other corporate services. The success of an LPO program is determined by the quality of its vendors. You can choose to outsource on-shore or offshore depending on the services you need.

Syntel is a company that supports organizations looking for innovative solutions and services to improve their operational competitiveness. Referee checks include interviewing and investigating principal lawyers, as well as non-lawyers. Additionally, the hiring practices of vendors are reviewed to determine the quality of employees.

Security is maintained by inspecting the provider’s security system and premises and signing non-disclosure agreements. LPO adoption has security and confidentiality issues. However, LPO adoption can also ensure high quality. These concerns can be overcome using certifications and by building Service-Level Agreements. It is important to sign Non-Disclosure Agreements, as well as maintain physical security through effective access control, in order to protect data confidentiality and security.

Over the next six years, the market will be driven by cost-saving, scalability, and flexibility provided by outsourced legal services. The type of service and the degree of it are what determine how much savings you make. Legal services in India are cheaper than those in North America. According to some reports, outsourcing costs per hour are as low as USD 50. This is expected to increase savings. Infrastructure costs in developing countries like the U.S., Canada, and the U.K. are lower than those in overseas markets such as South Africa and India.

Regional Analysis

The Asia Pacific led the market in 2021, accounting for over 61% of global revenue. It is expected to grow at the fastest CAGR between 2023 and 2032. The presence of important offshore locations in India, the Philippines, and other countries can explain this high share. Asia Pacific will continue to be the market leader, growing at a substantial CAGR between 2022 and 2032. LPO in countries such as India offers quantifiable benefits. These include the availability of English-speaking lawyers whose salaries are significantly lower than their counterparts in the U.S.

LPOs have a high level of competency and experience that improves the client-service relationship and increases work output. Latin America also held a significant market share. It is projected to grow at the second fastest CAGR between 2022 and 2030. This will allow it to emerge as an alternative to Indian services. Due to the increasing legal industry in North America, many U.S. firms prefer outsourcing repetitive legal activities.

Corporate firms are increasingly concerned about the legal overheads of other countries such as the U.K. or the U.S., and seek to outsource specific legal proceedings through legal representatives. Organizations that are considering outsourcing legal services may find it difficult to comply with local laws.

Market Share Analysis and Key Companies

Vendors in the market are working hard to expand their customer base and gain a competitive advantage over their competitors. They pursue several strategic initiatives such as mergers and acquisitions, partnerships, collaborations, and new product/technology development.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Clarivate, an American-based analytics company, bought CPA Global Ltd. in October 2020 to build an IP (Intellectual property) powerhouse. Clarivate has acquired CPA Global Ltd. to increase its offerings in the analytics and insights business. Cobra Legal Solution LLC launched its new website in March 2019 to offer effective legal and technical support to customers.

The following are some of the most prominent players in the global outsourcing market for legal services.

Key Market Players included in the Report:

• Clairvolex
• Clutch Group
• Cobra Legal Solutions LLC
• CPA Global Ltd.
• Evalueserve
• Exigent
• Infosys Ltd.
• Integreon Managed Solutions Inc.
• Legal Advantage LLC
• Lex Outsourcing
• Lexplosion Solutions Pvt. Ltd.
• Lexsphere Pvt. Ltd.
• Mindcrest Inc.
• Pangea3
• QuisLex Inc.
• UnitedLex
• Other Key Players

For the Legal Process Outsourcing Market research study, the following years have been considered to estimate the market size: