Legal services market is growing with increasing globalization and market competitiveness. A legal services company advises clients on legal rights and responsibilities and represent them in civil/criminal cases, business transactions and other matters that require legal assistance. These clients could be individuals or corporations. The legal services market is highly fragmented with majority of the market share held by large players. Nevertheless, small service providers have a better edge over the large players due to their local expertise and pricing models.
The purchasing patterns for legal services is changing. The in-house legal teams are preferring legal services firms who are more tech savy and can provide integrated services. Global compliance is the major issue faced by the in-house legal teams. Regulatory compliance, mergers and acquisitions (M&A) and litigation are expected to be the major growth areas in legal services market.
Factors like technological advances, relaxation of regulations by various governments and adoption of big data has enabled legal firms to expand their operations in untapped markets. Another factor driving demand for legal services is increasing outsourcing activities in various sectors like pharmaceuticals and healthcare, packaged consumer goods, automotive, food and beverages, tobacco and retail. However, companies in this market face major challenges like global compliance, uncertain economic conditions, proper vendor identification and cybersecurity.
Legal process outsourcing (LPO) industry involves outsourcing of legal services to an external service provider. This industry caters to services like legal research, litigation support, contract management outsourcing, document drafting and electronic discovery (e-discovery) outsourcing, among others. E-discovery refers to a process in which data is stored in electronic form with the intent of using it as an evidence in civil/criminal cases.
Law firms and corporations usually consider LPO to gain access to fresh industrial talent, reduce turnaround time on crucial projects while building on the company’s core competences. In addition, cost effectiveness is the major factor driving the growth of LPO market. The countries like UK and US are the major beneficiary of LPO.
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