Legal outsourcing likely to see profitability squeeze

New report analyzes emerging trends for offshore legal outsourcing in 2012

A new report from Fronterion, a legal consulting firm that analyzes emerging trends, points to a problematic 2012 for offshore legal outsourcing, as the industry is likely to see a profitability squeeze.

In the report, the firm tracked 10 trends for the legal process outsourcing (LPO) industry. Among them, the analysis shows that rising wages in developing countries such as India—13 percent in 2011, according to an Aon Hewitt projection—can hurt profitability as a whole, in comparison to the low amount of inflation in the U.S. and the U.K.

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