Reasons Firms Outsource
Firms can justify outsourcing legal processes through cost analysis, and engagements can drive companies to be better positioned to act upon additional opportunities.
Cost Drivers
If executed properly, successful legal outsourcing engagements can yield substantial savings. Savings from legal outsourcing are based upon labor arbitrage, but are also the result of more effective and highly-structured internal processes.
Further value can be realized from cost predictability from fixed-cost engagements that are offered by many offshore providers.
Innovation
Additional benefits of outsourcing emerge as our clients experience the full value proposition of external services, most notably innovation. Legal outsourcing serves as a catalyst that drives firms to engage in process reengineering, which refocuses the firm on their core values to achieve greater internal efficiencies.
The only business solution that succeeds in both recessionary and expansionary markets is innovation. Lead firms that innovate receive a disproportional amount of the value, which Fronterion helps our clients achieve.
Setting the Stage
Legal outsourcing is the result of the unsustainable increases in legal fees and increasingly burdensome litigation requirements.
In addition to cost savings, other factors create incentives for firms to consider outsourcing.
- Client frustration with unpredictable billing
- Technical advances in litigation support services
- Demand for quicker turnaround times for legal services
- High costs for maintaining a large number of support staff personnel
- Compartmentalization of legal services into basic functions
- Increased litigation discovery costs