Let us put things to perspective and understand where the LPO industry is heading to. Law firms and in house law departments function like any other business. All businesses want to save cost, increase efficiency to stay competitive. Some are quick, some late adopters. Especially during recession it seems logical that these businesses are under lot of cost pressure and are actively considering outsourcing. Is there any proof of the fact that LPOs are doing as wonderfully as to claim to be doing? Are LPOs really going to hire as many law graduates as they claim to? Let us analyze this industry with facts and figures from the industry experts. a. Headcount growth – According to ValueNotes as of Nov 2008 the industry is employing around 10000 people. Quite a steep growth considering the industry is only 4-5 years old. Also, the same report foresees the employee count to be 55000 by 2012. b. Market growth – The legal services industry has grown remarkably at 40 % CAGR (ValueNotes). c. Latest trends in the industry – Bigger players in expansion/ consolidation mode. Big BPO players including Infosys, HCL, WNS, Wipro either have entered this field or plan to do so in the near future (KPO Consultants). It is quite understandable though for someone who is looking at a new field that seems to be springing up from nowhere and growing at a dizzying pace to call it a Hype. Makes me wonder doesn’t it kind of resemble the growth of Information Technology outsour
Guys, LPO at the moment is nothing more than a simple hype. LPOs have been into existence for more than good 3 years now, amongst the host of services under the current outsourcing barrage, but if you were to look into the numerical headcount growth, the sector has performed rather dismally. True, there is an investment and consolidation for any new sector, line of business or a service offering, if you may want to address this new animal that way, but rather than a ‘S’ shaped curve (with ‘Growth’ & ‘Time’ on the two axis), it’s looking more parabolic and losing the momentum at the consolidation lap. Well, pessimistic or a diatribe as this may sound, the statistics of LPO are not at all convincing for any new entrant, to fall into its trap. Good luck to my friends who are already in….Cheers!
In call centre and low end BPO work, India is already facing tough competition from other countries. Indian companies have to move up the value chain. LPO is part of this trend.
Lot of people in this forum seems to confuse LPO/KPO with call center and general BPO work. The reality is quite different. The work done and type of clients serviced are very different, which is why there are specialised firms for LPO/KPO and large BPO companies which have tried to enter these markets have not done very well. In LPO/KPO, an associate is building an expertise in a given area, which is useful outside the industry as well. There is a lot of back and forth of jobs between LPO/KPO industry and investment banking, law firms industry. People are easily able to move from one industry to another, which proves the fact that skills gained in LPO/KPO industry are valued outside the industry as well. At the same time, LPO/KPO industry is also able to attract senior and middle managers from law firms, investment banks. The primary attraction of the industry is faster growth, good working environment, exposure to international best practices, which is handy in any job later on.
I’ve gone through all the comments posted and feel quite sad reading the naive remarks made about the LPO industry. I’d like to make an attempt in leading the readers to see the real picture of the industry and break a few myths about the industry. All views expressed here are my own and I speak in this forum from my first hand experience.
I’d like to ask a question – 5 - 6 yrs. back, what career option would you have expected a Gold Medallist of Pune University to choose? Litigation - Join a leading Law Firm - In house Counsel?? Well, I know this scholar friend of mine who had closed doors to all traditional options and opted for an employment with a leading BPO venturing into LPO that introduced her to Corporate Culture, International Clients, Work Life Balance, Employee Benefits, Personal and Professional Development etc. etc. The professors and friends thought that she was mad and that they would see her return to Litigation / Law Firm within months. However, she proved all predictions about her career wrong as she still remains in the industry, managing Lawyers from the top law schools in India, providing legal services to leading international law firms, investment banks and corporations. She is very happy with her professional accomplishments and says, “I am here to stay and grow”.
I’d like to clarify a few misconceptions related to the industry.
Re: LPO: Myth and Reality
by LPO Professional on Jun 12, 2009 10:05 PM
1. LPO’s carry out monotonous, routine, low end work – Every job in the world can be broken into smaller units which may be a combination of simple and complex tasks. By way of example, a practicing lawyer would prepare himself for the argument scheduled in the court the next day, his junior/s will be assisting him with research and his assistant would be typing, filing etc. Which job would you call low end and monotonous in this instance? Here we see that it is different skill sets for different jobs, however the consolidated effort leads to the winning / losing of the case. Similar is the case with Legal Services. LPO’s offer a variety of services ranging from Legal Transcription to Deposition Summaries to Document Review to Judgment Summaries to Contract Management to IPR related work. For each of these services, skill sets are defined. If there is a mismatch, work is bound to be unexciting. As far as routine work is concerned, I’d like to clarify that the work is not routine but process oriented. If I were to go by the general understanding of low/medium and high end jobs, I’d say LPO’s are a combination of all. Having said that, I’d like you to remember that each job desires a particular skill set and the right match is found to fit in well with the job requirements. This is why you’ll find the talent pool of LPO’s as a combination of Lawyers – fresh and experienced, Engineers, MBA’s and English Graduates.
Re: Re: LPO: Myth and Reality
by LPO Professional on Jun 12, 2009 10:06 PM
2. LPO’s are a waste of talent – The friend I referred to above was actually a reference to me. I am a Law graduate from ILS Law College, Pune and a Gold Medallist of Pune University. I started my career with the LPO industry when Google search result would show IPO for an LPO. I started as a Legal Consultant and have grown to a Delivery Manager in a leading LKPO today. I have to confess that if working in an LPO is considered to be a waste of talent, then I just love to do so. There are multiple growth options for an Associate to choose from. After reasonable experience in various processes, one could choose from various streams of Quality, Domain / Subject Matter Expert, Training, Management etc. You have to believe me when I say that there is no defined timeline for your growth, both vertical and horizontal. Seniors guide you all the way, mentor you and help you achieve your dreams. However, your success is in your hands.
Re: Re: Re: LPO: Myth and Reality
by LPO Professional on Jun 12, 2009 10:07 PM
3. LPO’s are Call Centre’s – Sadly Mistaken. I don’t wish to clarify this thought any further.
I really wish to talk further, in detail, but have a time constraint at the moment. I would love to talk more about my industry and what a typical day at an LPO would be like, would leave that for some other time. As I pen off, I’d request everyone to accept the LPO industry as a new career option and respect the work and people associated with the industry. Please do not form opinions about the industry based on hearsay, perceptions and lack of knowledge. If you really want to know where the industry is heading, what is in it for you, please talk to people within the industry and then make the decision for yourself.
If you cant convince [read BPO], confuse [read LPO]. :) Laws vary greatly across countries and so does the legal language and its interpretation. While business processes and cultures are open to cross adaptability, legal stuff is strict. Most legal documentation work is copy paste as plagiarism is acceptable to some extent. I doubt there is as huge a scope in outsourcing in this field as projected. Instead Intellectual Properties and legally securing of Ideas is one interesting area where a lot can be done both in India and outside.
