PUBLISHER: The Business Research Company | PRODUCT CODE: 1436434
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436434
Legal process outsourcing involves the delegation of legal functions or processes to an external third-party service provider, aiming to reduce costs and facilitate knowledge sharing. This entails the transfer of specific legal services from internal departments to external entities, which can include firms, paraprofessionals, or local lawyers. Opting to outsource legal work enables firms to rapidly expand their capacity for a case or project, placing them in a competitive position alongside larger counterparts. Additionally, the flexible staffing model contributes to reducing the firm's overhead costs.
Key legal process outsourcing (LPO) services encompass contract drafting, review, and management, compliance assistance, e-discovery, litigation support, patent support, and various other LPO services. Contract drafting involves the formulation of terms and conditions in legal agreements, requiring multiple drafts and negotiation sessions before the official contract is concluded. LPO service providers cater to both on-shore and offshore clients, serving law firms, enterprises, and government entities.
The legal process outsourcing market research report is one of a series of new reports from The Business Research Company that provides legal process outsourcing market statistics, including legal process outsourcing industry global market size, regional shares, competitors with a legal process outsourcing market share, detailed legal process outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the legal process outsourcing industry. This legal process outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The legal process outsourcing market size has grown exponentially in recent years. It will grow from $14.29 billion in 2023 to $17.83 billion in 2024 at a compound annual growth rate (CAGR) of 24.7%. The expansion observed in the historical period can be ascribed to cost efficiency and savings, the globalization of legal services, emphasis on core competencies, the demand for specialized expertise, and the evolving regulatory environment.
The legal process outsourcing market size is expected to see exponential growth in the next few years. It will grow to $45.54 billion in 2028 at a compound annual growth rate (CAGR) of 26.4%. The anticipated growth in the forecast period can be linked to the complexity of legal operations, the requirements for data security and confidentiality, the digitization of the legal industry, the adoption of flexible working models, and the optimization of legal processes. Prominent trends in this projected period involve an emphasis on cost predictability and transparency, an upsurge in legal analytics and predictive modeling, the adoption of agile and flexible outsourcing models, the rise of legal tech startups, and the outsourcing of regulatory compliance and due diligence.
The increasing demand for legal assistance is anticipated to be a driving force behind the legal process outsourcing market. Legal aid is in high demand due to various factors such as workplace issues, growing financial challenges, domestic violence protective orders, diverse debt matters, stringent laws, and others. This heightened requirement for legal support is expected to generate a substantial demand for legal services, prompting firms to opt for legal process outsourcing as standalone entities may struggle to manage the escalating demand. Legal process outsourcing facilitates knowledge sharing, cost reduction, and efficient provision of legal assistance. For instance, as per the U.S. Bureau of Labor Statistics, the employment demand for legal assistants and paralegals is projected to grow by 12% from 2020 to 2030, exceeding the average for all occupations. These trends underscore the significant increase in the demand for legal assistance. Therefore, the surge in demand for legal aid is poised to drive the expansion of the legal process outsourcing market.
The move towards remote work setups is expected to drive the growth of the legal process outsourcing market. Remote work involves carrying out job tasks and responsibilities from a location outside the traditional office, typically facilitated by digital technologies and internet connectivity. Legal process outsourcing facilitates remote work by outsourcing legal tasks, such as document review and research, to external service providers, thereby enhancing efficiency and flexibility in a dispersed work environment. For example, in February 2022, a survey conducted by FlexJobs' Career Pulse, a US-based platform serving the freelance community, revealed that 65% of respondents strongly preferred full-time remote work, while 32% expressed a preference for a hybrid work arrangement. This high percentage of 97% indicates that the majority of workers desire the option to work remotely to some extent. Consequently, the shift towards remote work arrangements is propelling the legal process outsourcing market.
Technological advancement stands out as a prominent trend in the legal process outsourcing market. The market is observing the infusion of technological innovations into legal process outsourcing services, such as the incorporation of cloud technology to enhance e-discovery services. These solutions empower firms to streamline their legal operations and enhance the overall customer experience. Numerous companies engaged in the legal process outsourcing market are prioritizing the adoption of advanced solutions to optimize their business processes and fortify their market standing. For instance, in July 2021, Cobra Legal Solutions, a US-based provider of legal support services, announced the expansion of its eDiscovery offerings by integrating Relativity's cloud-based eDiscovery solution, RelativityOne. This technology enables firms to streamline their discovery processes within a single, secure Software as a Service (SaaS) platform that covers the complete spectrum of e-discovery, from legal hold to production.
Leading companies in the legal process outsourcing industry are increasingly embracing strategic partnerships to address the rising demand for comprehensive solutions that cater to the strategic and operational needs of law departments and firms. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits. For instance, in September 2021, Elevate, a law company based in the United States, entered into a partnership with ALSP Alster, an alternative legal services provider based in Chile, to deliver consulting and services in Latin America. Through this collaboration, they aim to amalgamate their expertise to offer consulting services, operational efficiency, managed services, and digital transformation solutions to the legal community in the region.
In October 2022, the middle-market private equity firm Odyssey Investment Partners LLC, headquartered in the United States, completed the acquisition of Magna Legal Services for an undisclosed sum. This strategic move is aimed at providing support to Magna Legal Services, fostering growth, and facilitating the expansion of their operations. Magna Legal Services, a legal services company based in the UK, specializes in offering litigation support services, including court reporting, graphic design, jury consulting, record retrieval, and translation services.
Major companies operating in the legal process outsourcing market report are Cognizant Technology Solutions Corporation, HCL Technologies Limited, London Stock Exchange Group PLC, McKinsey & Company, Thomson Reuters Corporation, Capita PLC, Baker & McKenzie LLP, Axiom Managed Legal Services LLP, Huron Consulting Group Inc., ADEC Innovation, Evalueserve India Private Limited, Gerson Lehrman Group Inc., CTS Corporation, Unitedlex Corporation, QuisLex LLC, Morae Global LLC, Elevate Services Inc., Integreon Managed Solutions Inc., Cobra Legal Solutions LLC, Amstar Litigation Support LLC, The Clutch Group Inc., Clairvolex Knowledge Processes Pvt. Ltd., Mindcrest, Datascribe Technologies Inc., Exactus Corporation, Acumen Legal Services Private Limited, CPA Global Limited, Infosys BPM Ltd., Prism Legal, Bodhi Global Solutions Inc.
Asia-Pacific was the largest region in the legal process outsourcing market share in 2023. Western Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the legal process outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the legal process outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The legal process outsourcing market includes revenues earned by entities by providing services such as professional outsourcing, IT outsourcing, manufacturing outsourcing, project outsourcing, process outsourcing, and operational outsourcing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Legal Process Outsourcing Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on legal process outsourcing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for legal process outsourcing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The legal process outsourcing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.