The legal process outsourcing (LPO) market is anticipated to exhibit substantial growth by 2027 owing to the increasing usage of outsourcing services and greater regulatory focus on data security during LPO processes.

The COVID-19 pandemic expedited the adoption of remote work models worldwide, which has increased the importance of outsourcing services for litigation. It has not only pushed companies to work off-site but also prompted them to reassess their real estate needs.

Law firms have been more and more accepting of outsourcing options during the pandemic due to the numerous benefits associated with LPO solutions, including cost savings, flexibility, better turnaround time, and data security. Additionally, to address data security concerns linked with outsourcing services, government agencies have been updating their regulatory frameworks.

In line with this goal, in May 2021, the European Securities and Markets Authority (ESMA) released guidelines regarding outsourcing to cloud service provides. The ESMA guidelines are aimed at identifying, addressing, and monitoring risks and challenges that may arise from cloud outsourcing processes.

Moreover, newer industry players are also extending their reach in leading marketplaces to capitalize on emerging trends in the LPO space, further contributing to global legal process outsourcing (LPO) market growth. For instance, in June 2021, Sydney-based Sprintlaw announced its plans to expand into the UK market.

The Australian company uses its custom-built bots to automate legal tasks and make them simpler and more cost-efficient for small businesses and startups. With the launch of Sprintlaw UK, it has now extended its offerings to Wales and England, wherein it would provide fixed-fee legal packages and subscriptions as part of a legal consultancy model.

For extensive analysis, the legal process outsourcing (LPO) market has been segmented on the basis of service, location, and region. In terms of service, the market has further been categorized into contract drafting, e-discovery, compliance assistance, review & management, litigation support, patent support, and others.

The compliance assistance sub-segment is expected to see steady growth by 2027, registering a considerable CAGR through the forecast period. Constantly changing regulations regarding taxes, international trade, data security, and employee benefits is expected to support the demand for LPO services for compliance assistance in the following years.

Based on location, the market has been divided into offshore and onshore. The onshore sub-segment is estimated to account for a sizable revenue share in the legal process outsourcing (LPO) market by the end of 2027. Language barriers in several countries are expected to drive the demand for onshore LPO services, which ensure precise document drafting and interpretation.

From the viewpoint of region, the North America legal process outsourcing (LPO) market is projected to garner profitable growth over the study timeframe driven by the rising importance of cybersecurity in legal outsourcing services in the region.

Stringent regulations pertaining to data security and privacy are anticipated to be favorable for adoption of LPO services for compliance assistance and litigation support across North America, thereby propelling regional market growth over 2021-2027.