Legal Process Outsourcing in the Philippines is Evolving Under Shared Service Centers

Posted by Author 6 months ago

The Legal Process Outsourcing (LPO) is also quickly maturing in terms of functionality and rationality with the changing times fueled by technology, clientele demand and economic conditions. What used to be a viable venture on the premise of low cost labour dedicated to processing and relegating back office work to an off-shore location department – such as the Philippines, the industry is gearing up for change that will see its value chain move up and scale with other emerging outsourced industries.

With Legal Firms facing immediate effects from factors derived from socio-political and mercurial economic conditions, firms are shoring up at another look at how to sophisticate and get better returns from the LPO model.

As domestic events dictate the business climate of the practice, firms are increasingly going global – spurred on by local economics as the global LPO is valuated at approximately £1.5 billion and is further projected to be increasing in value in the years to follow – if the pace of outsourcing more legal processes to other countries remain consistent with its trajectory.

 

Philippines LPO Capability of the Future

Two countries, India and the Philippines are two of the biggest LPO destinations out in the global market as India boasts of over 130 global legal firms currently outsourcing or off-shoring legal processes within the country. For the Philippines, what the country can’t match India in terms of sheer manpower, offers a diversified portfolio consisting of linguistic capabilities, shared service infrastructure and an increasing level of awareness on factors that are not only shaping LPO but the whole concept of Business Process Outsourcing (BPO) with the advent of disruptive technologies such as industrial automation.

 

In the recent report published by the Shared Services & Outsourcing Network titled “Navigating The Transition from Low-Cost Labour to Analytics & Robotics services” the report affirms the status of the Philippine Shared Service Centers (SSC) to accommodate the evolving business model for the various functions entrusted to an SCC provider. These functions include research, document handling, research and risk assessment that are also functions comprising most managed LPO services operating in the Philippines.

 

The report on the multifunctionality of the Philippine based SSCs also alludes to the capability of the collective industry to sustain the evolving LPO business requirements.

 Image courtesy of SSO

From the graph, SSCs situated in the Philippines are nearing a careful balance between singular function and the ability to support upcoming changes through the ability to serve multi-function business requirements for voice, data processing, document processing and analytical requirements.

 

The New LPO

According to a report published by Raconteur.net about the maturing LPO industry, the industry as a whole has opened up more collaborative opportunities for much more sophisticated functions aside from the contractual labor associated with the old LPO model.

With the advancements made in telecommunications and cloud computing, real time collaboration between the firm and its “open associate” hybrid model allow for more work involving decision making.

Image courtesy of Raconteur.net

 

Image courtesy of Raconteur.net

 

In the studies based from 2013-2014, the Philippines are among the Top 10 Countries for LPO managed services.

 Image courtesy of Raconteur.net

In future-proofing the LPO industry in the Philippines, the providers and the associative industry must also scale with the ever-growing standards needed by Legal Firms: Business Requirements, Data Privacy and Protection of client sensitive data, quality of the staff contracted under the LPO shared service and the facilities that meet business standards in order to secure a long partnership agreement between a firm and the many providers.