The term "legal outsourcing" strikes fear, confusion and anxiety into the hearts of some. Such negative emotions are misplaced.
A few months ago I received the following email from a partner at a major law firm:
"What Do You Charge For Outsourcing About 1,000 Hours Of Legal Work Each Month? Starting
With Basic Things, Like Wills And Trusts, Loan Documentation, Research. Depending On The
Results, This Could Be Expanded Instead Of Increasing Staff In The US. This Has Been A Very
Sticky Internal Subject, How Can We Help Make Outsourcing To India More Accepted By Our
Staff? "
The subject was so "sticky" for the partner that he did not even use his law firm email address, choosing instead to correspond with me using his personal, private email. This is what I told him:
First, explain up front to those impacted by the decision to selectively outsource that the election was made to make the law firm stronger, better able to survive the challenges presented to law firms (and their clients alike) by the new, tenuous world economy. Advise the staff that survival and strength of the firm and those who make it what it is were the primary motivating factors in deciding to incorporate limited outsourcing into the firm's business strategy.
Secondly, make clear that the overall impetus to move toward outsourcing is client driven, motivated by clients themselves trying to improve their bottom line. Advise your staff that competitive law firms are already outsourcing (as reported in Bloomberg.com on August 21, 2007 where offshore outsourcing by law firms such as Jones Day and Kirkland & Ellis was reported). Law firms exist to serve clients. What is good for clients of the law firm is ultimately good for the firm itself.
Next, reassure the staff that the plan to send some work offshore does not mean that there will be mass firings or layoffs. Some who retire or otherwise leave the firm will not be replaced. Some may be asked to leave the firm for reasons which they would likely have been asked to leave based on performance, irrespective of the outsourcing decision. Fewer new employees will be hired. I know of one national law firm which annually adds 50 graduates of top tier law schools at an annual base salary in excess of $160,000. Adding in the cost off office space, benefits, bonus and support staff those 50 new lawyers cost the firm over $15 million dollars per year. Why not be even more selective in hiring and bring on only 30 of the best and brightest, reserving some of the funds for selective outsourcing?
Fourthly, outline to the staff exactly what type of work will be outsourced. Explain that only basic "chore" type legal work will be sent offshore. The more complex, rewarding and work will be retained for the U.S. staff. Let your people know that you expect they will be more fulfilled in their jobs by having even more challenging "core" legal work on their plate. Further, some of your staff may be supervising the offshore work, as ultimate responsibility under the Code of Professional Conduct rests with the U.S. law firm.
Fifthly, make sure everyone comprehends that legal outsourcing is merely another way of utilizing technology to make the firm better, more profitable and more efficient. Outsourcing is not just about the cost savings (which can be significant) but also about the efficiencies. Having work completed offshore "overnight" (because of the time zone differential) enables client matters, particularly those in litigation, to move quicker and more economically through the legal process.
Once you begin the process of selectively outsourcing legal work be certain to integrate the offshore "team" into your office. If possible, bring the attorneys who will be working on the firm's matters to the U.S. to meet the staff, develop rapport, and gain first hand insight and instruction on the particular way in which the firm wants certain tasks completed. If you do this, having a staff of lawyers across the world in India will be not be materially different from having junior associates down the hall.
New inventions and processes have continually improved law firm efficiencies. These include the dictaphone, computers, email, Blackberry devices, voice mail, voice recognition, software such as Power Point, Excel, Microsoft Word, etc. In the end, technological advances have always enhanced the legal profession and client service. Legal outsourcing is not to be feared or ignored. It is simply another tool that your firm can judiciously employ to better serve its clients while also making the firm stronger, more efficient and more profitable.
Martin L. Sandel, formerly a trial lawyer of more than 25 years experience, is President & CEO of SENDLAW.com. SENDLAW.com assists companies and law firms in exploring, evaluating and implementing appropriate legal outsourcing options. Further, Mr. Sandel advises law firms on how to incorporate an outsourcing group practice without negatively impacting law firm morale or culture. SENDLAW.com frequently travels to India to investigate, interview and evaluate legal outsourcing providers on behalf of clients of its corporate and law firm clients. For further information visit http://www.sendlaw.com or http://www.legaloutsourceadvisors.com
About the Author:
Martin L. Sandel, Pres/CEO of SENDLAW.com, earned a reputation over 30 years as a stellar trial lawyer in high damage plaintiffs' as well as defense matters. He has been invited to lecture at CLE seminars on the subject of professional liability. Based upon his personal evaluation of providers in India, he has spoken extensively on the benefits, pitfalls, opportunities and ethical considerations surrounding legal outsourcing. See: http://www.sendlaw.com
