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Legal Process Outsourcing (LPO) is the industry in which in-house legal departments or organizations or Law Firms outsource legal work from areas where it is costly to perform, such as the United States or Europe to areas where it can be performed at a significantly decreased cost, primarily India. Legal Process Outsourcing is a high end industry that has been growing rapidly in the recent years. Legal Process Outsourcing covers the following services in general: Out of the above the high value services are legal drafting, immigration visa processing, intellectual property registrations, legal research, anti-infringement operations, insurance claims administration etc. According to Nassscom, estimates of current addressable market potential for legal services that can be outsourced from the U.S. alone are pegged at $3 billion to $4 billion. It is estimated that only 3 to 4 per cent of the potential market has been tapped so far. By 2010, India is poised to achieve significant growth by doubling its share to 6 to 7 per cent in the $250-billion global market of LPO.According to the BPO Council of the Associated Chambers of Commerce and Industry (ASSOCHAM), over 200 top U.S. companies alone are looking for offshore locations towards achieving savings of up to 70 per cent. Thousands of Indian patent agents and intellectual property professionals will be working for U.S. and European clients in the next few years.LPO is the industry in which in-house legal departments or organisations outsource legal work from areas where it is costly to perform, such as the U.S. or Europe, to areas where it can be performed at a significantly decreased cost, primarily India. Sony pictures had to prepare an ‘ Opinion Letter ‘ ( Outlining the activity and the risks involved) for insurance firms in order to secure cover for shooting movie, and the movie’s fate hinged on the letter and the cover. Preparing the letter was a 400 hour job which would have cost $250,000 to get done in the US and Sony gave it a second thought. Eventually, the job was done in India for $43,000. Why should the U.S. based companies and Law Firms outsource their Legal Work to India ? What advantages and savings accrue to them if they outsource or offshore their Legal Process work to India? Cost saving is the biggest attraction for the western firms that outsource their legal work. India’s legal services are widely considered affordable, efficient, and above all, skilled. For a legal job outsourced in India, the U.S. firm pays hardly one-fourth or one-fifth of what it has to pay in the US for the same work . In other words, lawyers in India charge a pittance in comparison to their U.S. counterparts. Another big attraction of LPO is the geographical position of the U.S. vis-a-vis India. U.S. legal firms get a turnaround time of 24 hours by outsourcing their work to India according to one market survey. According to The New York Times reported “The reason for the shift echoes the reason companies are sending other work abroad: they save substantial amounts of money.

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