It should come as no surprise to any general counsel that the legal process outsourcing (LPO) market is skyrocketing. The value of the global LPO sector recently surpassed $1 billion and is growing at an annual rate of 32 percent, according to The LPO Program, a New York-based strategic consulting company.
Inside and outside counsel in every industry are focused on finding efficiencies and doing more with less as the law firm fee model continues to shift. As a result, savvy GCs and law firms are changing the way they view the nature of their work. They are doing this in large part by collaborating more closely to make sure that all projects are streamlined and that internal resources, such as paralegals and associates, are used in the most efficient, strategic ways possible. And while looking to outsourcing to achieve their strategic goals and streamline costs is nothing new, some inside and outside counsel are starting to examine this critical solution in new ways.
As you are reviewing your existing third-party provider agreements or considering forming new ones, here are four questions to ask yourself to make certain that you are getting the most out of these relationships and/or elevating them to true partnership status.
1. Does your third-party provider treat your business as their business? Your LPO provider should be proactive about identifying and comprehending your market and business challenges. This is the first sign that they will be willing to go over and above the standard transactional nature of their work with you. How often does your LPO add value? Can they truly contribute new functionality to the tasks you have given them? And most importantly, are they able to anticipate your needs and act as a strategic partner?