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Australia embraces Legal Process Outsourcing (LPO) – Another BPO Fad or BPO Phenomenon?

Posted by chetan on September 27, 2010 in Uncategorized | Subscribe

Australian organisations can pay $150 – $200 per hour for a paralegal but by outsourcing this work they can reduce the cost by 50% by hiring fully qualified lawyers in India and the Philippines, where there are currently over 5,000 professionals in the LPO industry. This trend is being driven more by the recent recession and the need to streamline business costs. It is expected there will be 18,000 professionals in the LPO industry by 2015.

With current technologies, security and access to information and documents can be easily controlled and organisations can have all the security they need. Now organisations can manage any down side and risk. As Australian companies see the benefits and manage the risks, we can only expect this trend to continue.

So what is really happening in the BPO industry? Yes, labour is being sourced from low-cost skilled labour pools, such as in India and Philippines, but this is purely the commercial aspect and what makes financial sense in the current market conditions. Ultimately however, it creates a dynamic global workforce, with the market forces distributing and balancing wealth and prices across international borders and according to business value.

We can expect to see BPO driven by cost reduction but also by other factors such as specialist expertise. Done in the right way, BPO makes organisations more efficient, skilled and competitive as well as reducing costs. The latest offshoot in the legal industry, LPO is just a sign of more to come in the BPO industry.

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