The $3 billion Legal Process Outsourcing (LPO) sector is predicted to grow at 20 percent annually, according to a report by investment bank Baird.
The bank predicts that traditional law firms will have to transform as fee pressure and client preferences for fixed price models grow with LPO addressing these preferences. The report also points out that wider acceptance of outsourcing has supported service delivery via onshore, near-shore and offshore centers.
The LPO subsector experienced a significant increase in M&A activity with technology-enabled service providers among the leading targets, according to the report, “Transformation of Business Process Outsourcing”.
In the United States electronic discovery (“eDiscovery”) has taken off. eDiscovery analyzes documentation using algorithms to highlight relevant information, reducing review time and improving quality for the client.
The bank also reports that the $150 billion global business process outsourcing (BPO) industry is likely to see continued consolidation over the next few years. This will be driven by client demand for cost savings, value-added services and emerging technologies, according to the report.
