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Is legal processing outsourcing a growing threat ?
A.S. Pradhan


On August 4, New York Times carried a story on how American legal professionals are moving to India to set up and work in Indian legal outsourcing companies. The main thrust of the article was that junior associates are the ones who are going to lose out with this trend. A GE counsel interviewed even states that GE does not need “an army of associates around them” and goes on to say that work like document review and basic due diligence should not cost them $500 an hour.

 

So does this mean the demise of the traditional law career? It probably does for lawyers working in traditional Biglaw and corporate settings. No amount of complaining about the quality of outsourced work or the legality of it is going to stop the flow; now that firms have discovered a source of cheap labor in an industry where labor is the main cost. And just as in the computer industry outsourced work kept increasing in quantity and quality, so it seems to be the case in the legal profession. Besides that, what about the H1B visa holders? Sure lawyers need licenses to practice in America but what about foreign workers coming to “assist” lawyers here.

 

There is one legal area where outsourcing or foreign workers are unlikely to make much headway anytime soon. In the courtrooms of small towns where there are no big law firms and people prefer to go to the local lawyer who has been around for a long time. Maybe moving to the Midwest seems like a good idea for new lawyers.



Posted on: 08/05/2010 05:36 AM | Number of feedback 5


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