One of the major trends of 2012 has been the “Right Sourcing” and “Blending” of where services are delivered from.
Back in the day, my naive expectation was that transactional Legal Services would either be outsourced or insourced (i.e. kept pretty much the same as currently, albeit with a focus on costs). What has happened is actually a lot more sophisticated than that, and is worth any senior Partner or Procurement function dwelling further on.
For any Top 20 UK firm or Top 100 US firm or large corporate with existing offshore or shared business delivery centres, there is actually the full range of options. Depending on the service or range of services that you are looking at it is feasible to end up with a position whereby:
- Some services are centralised in your own delivery operation
- Some services are bought in either tactically or strategically from a third party LPO/Legal Outsourcing supplier
- And some are retained in the old delivery model
The exact outcome depends on the business cases and culture/appetite, and that just makes the job of Procurement, Decision Makers (GCs and Managing Partners), and Consultants more difficult. Good news for consultants (yes, me too) but actually great news for the firms and GCs, resulting in more sophisticated and more situation-specific outcomes.
Only message of warning – “Focus on Governance”. Running different delivery models simultaneously is tough if Governance is not centralised and run at the right level of the organisation, by someone with the appropriate skills/experience.
Contact [email protected] for a 1-on-1 discussion on this.