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Legal Services - Global Outlook

  • ID: 1089900
  • Report
  • January 2012
  • Region: Global
  • 155 Pages
  • Global Industry Analysts, Inc
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The global outlook series on Legal Services provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. This GIA report discusses the prevailing trends, issues, demand forecasts, and activities that affect the industry.

The report offers an aerial view of the Global Legal Services Market, identifies major short to medium term market challenges, and growth drivers. The report also offers a recapitulation of recent industry activity in addition to an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 472 companies active in the market.

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A GLOBAL OUTLOOK, JANUARY 2012Global Directory


Global Legal Services Market 1
Table 1: World Market for Legal Services by Geographic
Region/Country - US, Canada, Japan, Europe, Asia-Pacific
(including Japan), and Rest of World Markets Independently
Analyzed with Annual Revenues in US$ Billion for Years 2010
through 2015 1

Table 2: World Legal Services Market (2011 & 2015):
Percentage Breakdown of Dollar Sales by Geographic Region -
US, Canada, Europe, Asia-Pacific and Rest of World 2
Competitive Landscape 2
Table 3: Leading Global Law Firms by Revenue in US$ Billion
(2011) 2
Structural Changes in Legal Profession Continue Unabated 3
Business Sector - A Key Growth Area for Legal Services 3
Law Firms Adopt Outsourcing Models 3
Legal Process Offshoring: A Flourishing Industry 4
Reccesion Impact and Aftermath 4
Offshoring Gains Prominence as Spending Wanes 5
LPOs Capitalize on Demand 5
LPO Services Industry Trends in the Recent Past 5
Changing Legal Landscape 6
Changing Vendor Landscape 6
Flexible Agreements and Growing Third Party Vendor Influence 6
Emerging Outsourcing Destinations 7
Employment Opportunities Galore 7
Growing Transparency 7

Introduction 8
Birth of Law and Legal Services 8
Market for Legal Services 8
Legal Aid 9
Legal Aid Delivery Modes 9
Staff Attorney Model 9
Judicare Model 10
Community Legal Clinic 10
Legal Aid Practices in Select Countries 10
The United States 10
Organizations Involved 11
The UK 11
Scotland 11
Australia 12
Technological Milestones in the Global Legal Services Industry 12
Legal Process Off-Shoring - A Growing Industry 13
Market Landscape 13
Secretarial and Administrative Tasks - Key Outsourced Functions 14
Paralegal Outsourcing -Complex Processes 14
Off-shoring of Lawyer's Work- A Testimony to Success of LPO 14
India - A Key Destination for Offshore Legal Services 14
Integrated Technology Enabled Solutions Revolutionize
Contract and Litigation Processes 15
LPO Markets to Face Regulatory Changes 15




US Legal Services Industry 30
Market Overview 30
Table 4: US Legal Services Market Revenues for Years 2010
through 2015 (in US$ Billion) 31
Recession and Aftermath 31
Legal Services Industry Adopts External Financing Model 32
Legal Process Outsourcing to Surge in the Near Term 32
US Exports and Imports of Legal Services 33
Competitive Landscape 33
Table 5: Leading US Law Firms by Attorneys Employed (2011) 33

Table 6: Market Share of Leading US Legal Advisor Companies
for Mergers and Acquisitions (2010) 34
Structure of Legal System in the US 34
Women in the Field of Law 35
Historical Perspective 35
Current Scenario 35
Table 7: Women Population at ABA (2010-2011): Percentage
Breakdown for Board of Governors, House of Delegates,
Section/ Division Chairs and Section/Division Officers 35

Table 8: Women Population in Private Law Practices (2010):
Percentage Breakdown by Category-Summer Associates,
Associates, Partners, Equity Partners and Managing Partners 36

Table 9: Population of Women Judges in the US Federal
Judicial System: Percentage Breakdown for Supreme Court of
the United States and Circuit Court of Appeals 36

Table 10: Population of Women Judges in the US State
Judicial System: Percentage Breakdown for State Final
Appellate Jurisdiction Courts, State Intermediate Appellate
Jurisdiction Courts, State Limited and Special Jurisdiction
Courts, State General Jurisdiction Courts and All US State
Court Judges 36

Table 11: Women Lawyer Members in the ABA: Percentage
Breakdown for Category: Total Presidential Appointments,
Section/Division Chairs, Board of Governors, House of
Delegates, Section/Division Officers and Committee Chair
Appointments 37
Technological Milestones in the US Legal System 37
Regulations 37
Trends in the US Legal Services Market 38
Corporate Legal Spending on the Decline 38
Clients Negotiate Alternative Fee Structures 38
Economic Downturn Affects Employment at Law Firms 38
Attorneys Preferring Solo Practice 39
Online Legal Services - Expanding Market Reach 39
Downturn Distresses Legal Aid Services 40
Legal Process Outsourcing 40
LPO Industry Witnesses Surge in Business Volume 40
Client Push and Cost Escalation Drive Offshoring of Legal Work 41
Legal Service Plans Gaining Popularity 41
Working of Legal Service Plans 41
Paralegal Services 42
Increasing Demand for Paralegal Services 42
Law Firms Seek Economical Alternatives 43
Rising Demand for Compliance Paralegals 43
E-Discovery Creates New Roles for Paralegals 43
Paralegals Subject to Regulation by Law 43
Mediation Services 43

2. CANADA 44
Legal Services Market: Current Scenario 44
Table 12: Leading Law Firms in Canada by Number of Deals in
Hand (Q2 2011) 44

Table 13: Canadian Legal Services Market Revenues from 2010
through 2015 (US$ Billion) 44

3. JAPAN 45
Current Scenario 45
Table 14: Japanese Legal Services Market Revenues for Years
2010 through 2015 (in US$ Billion) 45
Liberalization Opens Legal Services Market in Japan 45
Types of International Law Firms in Japan 46
Rapid Growth in Number of Lawyers Drawing Intense Debate 46
Strong Opposition Leads to Review of Plan 46
Quality of New Lawyers Pose a Major Concern 47
The Gatekeeper Issue - A Potential Threat to Client-Lawyer
Relationship 47
Overview of Japanese Legal System 47
Professional Structure 48
Bar Associations 48

4. EUROPE 50
Market Overview 50
Globalization Now Rampant in the European Law Industry Too 50
Niche Law Firms Increase in France and Germany 51
Table 15: European Legal Services Market by Geographic Region-
France, Germany, Italy, UK, Spain and Rest of Europe
Markets Independently Analyzed with Annual Revenues in US$
Billion for Years 2010 through 2015 52

Table 16: European Legal Services Market (2011 & 2015):
Percentage Breakdown of Dollar Sales by Geographic Region -
France, Germany, Italy, UK, Spain and Rest of Europe 53
Competitive Landscape 54
Table 17: Leading Law Firms in Europe by Number of Lawyers
(2011) 54
New Centers of International Law Practice in Europe 54

4a. GERMANY 55
Overview 55
Table 18: German Legal Services Market Revenues for Years
2010 through 2015 (in US$ Billion) 55
Recession Gives German Law Firms 56 a Run For Their Money 56
Law Firms Employ Alternative Strategies to Tide Over Slowdown 56
Legal Aid in Germany 56
Types of Legal Professionals in Germany 56
Attorneys 57
Patent Attorneys 57
Notaries 57
Opportunities for Foreign Nationals 58

Overview 59
Table 19: UK Legal Services Market Revenues for Years 2010
through 2015 (in US$ Billion) 59
Structure of Legal Services in England and Wales 59
London - A Major Center for International Legal Services 60
Trends 60
Industry Growth Unaffected by Fall in Remuneration 60
Larger Firms Corner Majority of Revenues 60
Table 20: Leading Law Firms in the UK by Revenues (2011) 61
Business and Commercial Legal Services Lead the Market 61
Declined Revenues Force Law Firms to Lay-Off Staff 61
Legal Aid Services Affected by High Costs 62
Legal Services Act 2007 Ushers in Reforms in England 62
Reforms to Legal Aid System 62

4c. FRANCE 64
Overview 64
French Law Firms in the International Landscape 64
Mid-size and Boutique Firms Prosper 64
Rising Competition on the Home Turf 64
Legal Aid in France 64
Eligibility 65
Full and Partial Legal Aid 65
Actions Covered Under Legal Aid 65

4d. ITALY 66
Italian Legal Services Market Overview 66
High Consolidation among Domestic Firms 66

4e. RUSSIA 67
Russian Legal Services Market Overview 67
Foreign Firms Lead the Suite 67

Asia-Pacific Propping Global Legal Services Market 68
Overview 68
Table 21: Asia-Pacific Legal Services Market by Geographic
Region- Japan, China, India, Korea and Rest of Asia-Pacific
Markets Independently Analyzed with Annual Revenues in US$
Billion for Years 2010 through 2015 69

Table 22: Asia-Pacific Legal Services Market (2011 & 2015):
Percentage Breakdown of Dollar Sales by Geographic Region -
Japan, China, India, Korea and Rest of Asia-Pacific 70

Australian Legal Service Industry 71
Overview of Legal System 71
Professional Structure 72
Market Overview 72
Government Legal Expenditure Witnesses Slowdown 72
Downturn Sends Legal Aid into a Quandary as Funds Dry Up 72
Overseas Markets Offer Growth Prospects 73
Exports 73
Exports by Region 73
Exports by Practice Area 74
Competitive Scenario 74

5b. CHINA 75
Market Overview 75
International Law Firms Follow Businesses into China 75
UK Firms Score over Law Firms from Other Countries 75
Foreign Firms Maintain Firm Stand 75
Accession to WTO Open Further Opportunities for Foreign Firms 76
Domestic Firms Gain Ground 77
Table 23: Leading Domestic Law Firms in China by Number of
Participating Lawyers and Partners (2011) 78
Legal Services in China 78
Overview of Legal System in China 78
Professional Structure 79

5c. INDIA 80
Overview of Legal Services Market in India 80
Competitive Scenario 80
Overview of Legal System in India 80
Professional Structure 81
Overview of Legal Services Industry In India 81
Regulation of Legal Profession 82
The Contentious Issue of Liberalization 82
Present Restrictions over Liberalization 82
Entry of Foreign Law Firms - An Issue Still Being Weighed 82
Relevance of Liberalization of Legal Services to Business
Growth 83
Transformation in the Legal Services Market 84
India Mulls Over Allowing UK Law Firms Practice Law in India 84
India - A Key Destination for Global Legal Process Outsourcing
Business 84
LPO Sector Dispels Recession 85
Key Markets For Indian LPO Industry 85
Structure of Indian LPO Industry 85
Competition 86
Classification Based on Type of Vendors 86
Classification Based on Value of Work 86
Classification Based on Source of Work 86
Quality of Service and Data Confidentiality - Key Challenges
Ahead 86
LPO Industry Offers Numerous Employment Opportunities 87
Indian LPOs Explore Opportunities in Japan and South Korea 87

Overview of Legal System in South Korea 88
Professional Structure 88
South Korea Liberalizes Legal Services Market 89
Three- Stage Liberalization Plan for Korean Legal Service Sector 89
Stage I 89
Stage II 89
Stage III 89
Liberalization to Significantly Alter Market Dynamics 90
Reforms 90
Business Sector - A Key Beneficiary of Liberalization 90

5e. HONG KONG 92
Market Overview 92
Legal System Overview 92
China, the Leading Destination for Hong Kong's Legal Services
Exports 93
Key Provisions of CEPA 93
Effects of CEPA on the Hong Kong Legal Industry 94

6. BRAZIL 95
Privatization Increases Demand for Legal Services 95
Overview of Brazilian Legal Services Market 95
Regulation of Lawyers 95
Qualification of Lawyers 95
Code of Conduct 96

7. ISRAEL 96
Booming Economy Fuels Growth in Legal Service Industry 96
Foreign Law Firms to Expand into Israel 96

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The recession period brought a transformation in the legal service industry, as law firms reduced costs, and cut back on staff to stay afloat and to improve cost effectiveness. Small law firms adopted alternate business models to sustain business operations. The wavering economy also affected the client-company relations. In the recession stricken economy, clients hesitated to pay high fees for regular legal services, and instead inclined towards alternate methods such as bartering services, to pay for the required legal advice. The economic conditions and the subsequent changes are resulting in long-lasting effects in the structure and working of law firms. With the impact of recession slowly ebbing and the economy back on growth mode, demand for legal services is picking up. However, cost reduction efforts continue to be prominent at law firms, leading to more staff retrenchment. Additionally, law firms are witnessing continued demand for discounting, especially of routine work.

With the legal services market witnessing a long period of stagnancy during the recession, several large law firms are providing clients with increased value and differentiation through Legal Process Outsourcing (LPO). Though law firms initially remained hesitant to outsource the legal work, adverse economic conditions placed pressure on law firms to minimize overhead expenses related to general administration, accounting, knowledge management, paralegal, clerical, information technology, sales and marketing. By outsourcing majority of overhead jobs to offshore destinations, law firms are able to save significant costs. Factors such as limited resources, increased risk exposures and backlogged legal obligations forced corporate legal teams and law firms, to perform more with lesser resources. Majority of projects originate from the US and UK, and are outsourced to developing countries such as India to benefit from the significant price advantages provided by such destinations. An increasing number of legal projects are now outsourced by Corporate Counsels or by corporate counsel's preferred law firms.

The global legal landscape also witnessed an increased number of law firms opting for business consolidation. The industry is witnessing cross border mergers and acquisitions as law firms look to expand global presence through the acquisition of smaller firms. Cross border mergers and acquisitions being led by leading firms is in response to increasing cross border trade of technology, services, capital goods and personnel.

Global Industry Analysts ©
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