LPO & KPO
August 7, 2009
Legal process outsourcing:
Legal process outsourcing is a one of outsourcing it is arrangement in which one company provide the legal work to another company.
- Legal research
- Document Drafting like standard contracts, agreements, letters to the clients, patent applications etc.
- Legal Billing activities like preparation of invoices, collation of time sheets etc.
- Intellectual Property research–substantive and administrative
- Paralegal Services
- Administrative and secretarial activities like following up with clients, etc
Outsourcing legal work to India costs up to 80% less than the cost of using the services of American law firms.
But it isn￢ﾀﾙt just cost savings that make the LPO an attractive business prospect for U.S. companies and forward-looking law firms.
LPO users can gain more operational efficiencies by focusing on core business activities while having access to a breadth of skills, technology and service offerings, at a reduced cost.
Knowledge process outsourcing:
KPO is a form of outsourcing, in which knowledge-related and information-related work is carried out by workers in a different company mostly in different countries.
Service oriented architecture
Enterprise application integration
- In KPO required specific higher education and language skills are essential. MBAs, PharmacistsPhDs, engineers, doctors, lawyers, writers, ghostwriters, designers, web designers and other specialists.
- As of 2007, most US organizations were hiring foreign professionals under H-1 visas to do jobs in the USA for several years, after which they would return to their home countries as managers to train and supervise others, continuing to report to their former business units
Challenges in KPO:
In addition to the challenges faced by clients, KPO companies themselves have challenges:
- High staff turnover, especially where work is not challenging to the employee’s skills.
- High cost of training and tendency to lose the most experienced employees to the clients.
- Ensuring the security and confidentiality of information, especially when privacy laws vary from country to country.
The market of KPO:
Today KPO market is about $1-3 billion and it is expected to increase to 8-10 billion by 2010. This is expected to reach close to 250,000-280,000 by 2010