How more “onshore” can you get? London as the new low cost LPO destination?
Certainly compared to the traditional legal models, a strong supplier, with strong methodologies and good people can do what is seemingly impossible (but is actually being replicated in other high-cost locations such as New York, Washington DC, etc) i.e. provide better quality outsourced legal services at a fraction of the cost.
While the Integreon offering is not a surprise, leveraging assets they inherited from the CMS Cameron McKenna deal, it does emphasise a number of points:
- LPO is not a one-trick pony, relying on labour arbitrage – it is about a different way of delivering essential legal services.
- It shows the extent of the savings available from having the same services delivered more effectively, by specialists, regardless of location.
- It shows that Suppliers are able to offer an effective response to the trend for onshore/captive models that have hit the headlines over the last 12 months
It also shows that LPO is becoming a more blended offering. Even someone like Allen & Overy, with their own Northshore operation in Belfast, is using a multilateral approach to accessing the right LPO services from the right location. For any newcomer, it is not a question of “outsource or don’t outsource?” It is about “Right Sourcing”, based on what is right for the organisation. “One size fits all” has never seemed like an appropriate response to the opportunity of Legal Outsourcing.
Certainly “not outsourcing anything” is less and less of a realistic option – except in law firms that are operating with the equivalent economic mentality of North Korea.