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Top ten reasons why selective legal outsourcing should be considered by law firms

It is an obvious fact that companies can only look to modify two revenue streams, income and expenditure, in order to increase profitability. When income is down and not expected to increase dramatically in the near term, law firms’ clients will take the hatchet to expenditures to survive. Legal expenses are being subject to intense scrutiny. Legal outsourcing is gaining momentum while still a nascent industry, and is being considered in more corporate boardrooms. As the pressure to outsource builds, lawyers are pondering whether they should embrace or resist outsourcing of offshore legal work. Faced with global economic problems coupled with the growing loss of American employment, why would a U.S. law firm even want to consider outsourcing legislation? Are there valid reasons why any US law firm should consider targeted legal outsourcing?Checkout Hilbrich Law Firm  for more info



Several weeks ago I got an email from an attorney who was considering outsourcing some of his law firm’s legal work. Faced with the opposition and obstacles of others in his law firm who wanted to preserve the status quo, he asked my opinion about what to tell his partners about. Why should the firm outsource legal work offshore, a practice some see as adventurous and risky, rather than staying the course, doing it “the way we’ve always done it.” I answered him with the top ten reasons why each law firm should consider selective legal outsourcing:

  1. Prudent, Target Outsourcing Will Result In Reduced Overhead Law Firm

Outsourcing certain legal work to qualified providers in India will result in significantly lower overhead for the law firm that outsources. The law firm would be prudent to properly measure the real costs of hiring one lawyer or paralegal while determining the comparable costs. Such expenses include compensation and bonus, health insurance, vacation and holiday pay, sick days, FICA, lawyer’s office space and equipment, paralegal and secretarial staff assigned to that lawyer, retirement and profit sharing, vehicle and parking costs, CLE training costs, and other employment benefits such as disability and life insurance benefits.