Downwards pressure on corporate legal budgets is forcing many companies and law firms to seek new ways to reduce legal spend or, at least, limit the amount spent on routine legal tasks.
But, despite compelling cost drivers, there has been very little innovation in this area to date. Fixing or capping fees paid to external counsel only tackles part of the problem, and often puts unnecessary pressure on the in-house team by bogging them down with low-level, but high-risk work. Surely there must be a better way of doing more work with existing resources?
Actually there is. Many forward-thinking companies are beginning to separate routine legal tasks from higher-value, opinion-driven legal work, in order to outsource work to cheaper, third-party suppliers, such as those based in India.
The cost benefits are well-known: hourly rates for repetitive tasks such as docketing can be half or less of what you would be paying for paralegals and associates in the UK or US - and fees are set up front, enabling you to project and cap spending.
By incorporating CPA Global's LPO services into the daily running of its legal department, Rio Tinto estimates that it will cut 20% from its legal spend in the first year of operation alone. Managing attorney Leah Cooper explains how.
At CPA Global we partner with our clients to provide a customised plan to meet the LPO requirements and objectives that are unique to their business.