Insourcing and Outsourcing
Some interesting statistics..
• 78% (67% in 2007) of in-house lawyers agree that
reducing total legal expenditure is becoming increasingly
important in their organisation
• 80% (71% in 2007) of in-house lawyers agree that the
percentage of legal work they conduct in-house is
increasing
Source – Legal Beacon 2009 and ACLA in-house law report
Workload
Typical in-house workload
Time
There are new alternatives …
New models for
insourcing and
outsourcing work
New opportunities for
efficiency on particular
projects or kinds of work
Improved workload
management and
reduced costs
Corporate legal work
A
B
C
A. Exceptional
B. Experience
C. Efficient
Use alternatives to create efficiencies
A
A. “Pointy end”
large law firms but can
be unbundled
B
B. In-house teams and
insourcing
C
C. LPO’s
Is this familiar?
Time spent on doing what matters
Time spent on everything else
Insourcing
Who?
Advent Lawyers
Balance Legal
How?
•
•
•
•
Provide senior and experienced lawyers who work in-house
More commercial focus and understanding
100% dedicated
Flexible basis and at a reduced fixed cost
Insource what?
•
•
•
•
•
•
•
Executing or project managing transactions
Managing large scale tenders or contracts
Litigation or dispute resolution
Implementing regulatory change
Compliance projects
Managing integration issues following a merger or acquisition
Short and longer term “infill” – e.g. replacement for someone on holiday,
maternity leave or assigned to a major project
Legal Process Outsourcing
Who?
Pangea3
Gemtech
CPA Global
How?
• Often located in India and other lower cost environments
• Best of them have:
– US & UK trained lawyers working in India who are English speaking
– World class security & IT systems
– Confidentiality arrangements and non-disclosure agreements
– Legal professional privilege applies
– Conflicts policies
– Six Sigma methodologies for their processes
Outsource what?
• Corporate
– Due diligence
– Contract drafting and revision
– Corp governance and corp secretarial
• IP
–
–
–
–
Patent preparation & prosecution support
Patent research
IP analytics, due diligence and competitive intelligence
IP monetisation & litigation support
• Litigation & e-Discovery
– Document review
– Trial preparation & support
– Discovery solutions
• Risk management and Business Intelligence
Why change?
Quantifiable ROI
• Increased revenue/profitability
• Substantial cost savings
• Budget hero
• Cost certainty
Significant cost savings
$400
$300
$200
$100
$0
Law Firm
Intangible benefits
Pricing
• Reallocation of in-house lawyers
to higher value activities
• Access to subject matter and technical expertise
• Flexibility
In-house
counsel internal
cost
LPO pricing
Sydney
Level 5, 66 Hunter Street
Sydney NSW 2000
T +61 2 8014 5110
F +61 2 9223 0511
Melbourne
Level 40, 140 William Street
Melbourne VIC 3000
T +61 3 9229 3855
F +61 3 9229 3856
www.adventlawyers.com