Legal process outsourcing services include legal transcription, legal research, drafting of legal documents, and other paralegal services. According to a recent market research report from Global Market Insights, Inc., the value of the Legal Process Outsourcing (LPO) Market value is set to exceed USD 40 billion by 2024.
Key factors expected to drive the LPO market during the forecast period (2017-2024) include
- Increasing requirement for efficient legal departments to manage process-oriented and high volume legal work
- Technological advancements such as the use of AI (Artificial Intelligence) by legal process outsourcing firms for data processing, which has contributed towards significant revenue growth
The main challenge impacting market growth is the security concern associated with the LPO model. Technologically advanced legal process outsourcing companies are addressing their clients’ confidentiality and security concerns by implementing globally standard certifications and processes, such as Six Sigma and ISO 27001.
The service segment in this market includes e-discovery and patent support service services.
- The e-discovery services market is expected to grow at a significant CAGR of over 40% from 2017 to 2024. The factors responsible for this growth include the increasing use of digital systems by businesses and outsourcing of meta data rich electronic documents. Outsourcing companies help legal departments identify and generate information from this data quickly and cost-effectively.
- The patent support service segment is expected to witness growing demand due to the need to outsource qualitative tasks such as IP litigation and proof-reading. Outsourcing these tasks allows large organizations to free up their employees to focus on high-value activities.
Based on location, the onshore market is to witness high growth over the future, as it is considered a comparatively safer alternative in comparison to outsourcing offshore. Onshore outsourcing also offers benefits such as shared regulatory framework, which streamlines business processes.