The Disadvantages highlighted in the ARTICLE by LPO Savvy are as follows
1. Cultural Differences
2. Confidentiality
3. Communication Barriers
4. Hidden Costs
5. Geographical Hurdles
It is hard to understand the commercial nature of the disadvantages. Any commercial transaction looks at positives and negatives in terms of finance and work-output. Let us address the point made above...
1. Cultural Differences - Cultural Difference is true but has no commercial value. There are several benefits in this cultural difference from the commercial angle which should also be considered... eg. 6 days working, ability and availability to work for more than 8 hrs a day... (Which is called ---PRODUCTIVITY)
2. Confidentiality - This is true till a large extent but the US based Law Firms have protection to a large extent. If they are working with an India based LPO directly, confidentiality is a major issue which neither can be controlled nor governed. Thus most good LPO have a US based company to give the US Law Firms a sense assurance that I will get the full protection and if I don’t get it I can catch hold of the US based entity.
3. Communication Barriers – Any LPO can in no way replace the lawyers and the attorneys from USA. LPO basically is an institution to provide you with a basic support which will reduce the cost till a large extent. Secondly starting work with an LPO in no way means that ‘I have given it work and it is done’. Consider the LPO institution as your employee where it needs to be trained and then the productivity will increase. Eg. If I draft a deposition summary, I will do it in a set format. Then the lawyer for whom I have made it should see it and then advise me on his way of drafting. That is how the LPO will know what and how the attorney wants the deposition to be. LPO is just your EMPLOYEE whose only aim is to learn from you and provide you with the best result
4. Hidden Cost – This issue is something I have not heard off before. Even this issue exist the US based law firms can follow the footsteps of an IT outsourcing industry wherein a PoC is done, requirements captured, times and rate fixed beforehand. Only problem here is that turnaround time for LPO projects is quite short. Still if the firm develops an understanding with the LPO this problem can be solved. LPO wants to work and develop a everlasting relationship, thus if the US based firm has a problem with the rate, time, process etc. it should bring the same forward in the same or the next project.
5. Geographical Hurdles- The issue of data lost is mentioned in the confidentiality point above. As regarding travelling is not a major issue. If a law firm is saving around $500,000 per year per person spending $8,000 per person per visit is not much. Secondly this Geographical difference gives the US based firms option of 24 hrs working productivity.
It is true there are some differences but if the US based firms are ready solutions to anything is possible.
1. Cultural Differences
2. Confidentiality
3. Communication Barriers
4. Hidden Costs
5. Geographical Hurdles
It is hard to understand the commercial nature of the disadvantages. Any commercial transaction looks at positives and negatives in terms of finance and work-output. Let us address the point made above...
1. Cultural Differences - Cultural Difference is true but has no commercial value. There are several benefits in this cultural difference from the commercial angle which should also be considered... eg. 6 days working, ability and availability to work for more than 8 hrs a day... (Which is called ---PRODUCTIVITY)
2. Confidentiality - This is true till a large extent but the US based Law Firms have protection to a large extent. If they are working with an India based LPO directly, confidentiality is a major issue which neither can be controlled nor governed. Thus most good LPO have a US based company to give the US Law Firms a sense assurance that I will get the full protection and if I don’t get it I can catch hold of the US based entity.
3. Communication Barriers – Any LPO can in no way replace the lawyers and the attorneys from USA. LPO basically is an institution to provide you with a basic support which will reduce the cost till a large extent. Secondly starting work with an LPO in no way means that ‘I have given it work and it is done’. Consider the LPO institution as your employee where it needs to be trained and then the productivity will increase. Eg. If I draft a deposition summary, I will do it in a set format. Then the lawyer for whom I have made it should see it and then advise me on his way of drafting. That is how the LPO will know what and how the attorney wants the deposition to be. LPO is just your EMPLOYEE whose only aim is to learn from you and provide you with the best result
4. Hidden Cost – This issue is something I have not heard off before. Even this issue exist the US based law firms can follow the footsteps of an IT outsourcing industry wherein a PoC is done, requirements captured, times and rate fixed beforehand. Only problem here is that turnaround time for LPO projects is quite short. Still if the firm develops an understanding with the LPO this problem can be solved. LPO wants to work and develop a everlasting relationship, thus if the US based firm has a problem with the rate, time, process etc. it should bring the same forward in the same or the next project.
5. Geographical Hurdles- The issue of data lost is mentioned in the confidentiality point above. As regarding travelling is not a major issue. If a law firm is saving around $500,000 per year per person spending $8,000 per person per visit is not much. Secondly this Geographical difference gives the US based firms option of 24 hrs working productivity.
It is true there are some differences but if the US based firms are ready solutions to anything is possible.
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