Global Legal Process Outsourcing Market is Boosting-Projected to Reach Worth USD 28,545.1 Million in 2027
A study recently conducted revealed that the global legal process outsourcing (LPO) market was worth USD 7,179.2 million in 2020 and is further projected to reach USD 28,545.1 million by 2027, at a CAGR of 23.5% during the forecast period (2021-2027). The integration of technology such as artificial intelligence with legal process outsourcing services has propelled the growth of the global legal process outsourcing market. Additionally, a growing number of well-educated and fluent English-speaking lawyers from emerging countries such as the Philippines, China, Australia, and others is also contributing to the growth of the market.
Integration of Artificial Intelligence Tools with Legal Process Outsourcing Services
Artificial intelligence (AI) is a broad field of computer science that focuses on creating intelligent machines capable of performing tasks that would normally require human intelligence. The integration of AI technology in various software has enabled a wide range of new capabilities. The increasing advancements in AI technology have not only helped the automation industry or mobile technology but also strengthened its roots in legal process outsourcing services.
Artificial intelligence (AI) in legal practice relates to advanced technology and tools that mitigate the monotony that lawyers can relate to due to the enormous amount of time any attorney or paralegal has to spend at their desk. Because of AI, legal services have become more innovative and efficient. Manual and arduous tasks have now become much simpler and more bearable; thanks to AI. Prior to the introduction of A.I., LPO work was time-consuming. As a result of the implementation of AI, the LPO's waiting hours have been greatly reduced. Furthermore, AI offers additional technical assistance in legal software, streamlining the process with clear-cut tech functionality for specific contract and e-discovery requirements, resulting in an effective workflow at all levels.
Effective Utilization of E-Discovery Resources Propelling the Market Growth
Electronic discovery, preferably known as e-discovery, is an electronic procedure in which documents are shared between the parties involved in a legal case. In this procedure, pieces of evidence are collected in electronic formats, post which both the parties collect, review and exchange these pieces of evidence. Electronic formats are available in different formats, also known as electronically stored information or ESI (as known in the e-discovery world). This ESI is derived from familiar data sources, such as basic email and Microsoft documents. Additionally, the latest ESI may also include social media texts, mobile applications, and others.
E-discovery is a six-stage process that includes identification, collection, processing, hosting, legal review, and production. The e-discovery consultants possess rich expertise across the evidence lifecycle. Teams can use this expertise to support strategic thinking and best practices across a wide range of legal and eDiscovery issues. Having successfully executed complex e-discovery engagements, experienced consultants can assist the company in managing any or all phases of the electronic discovery lifecycle from identification through production. The collection, processing, and review of electronic documents require much more than a sophisticated software system. It also requires a team of professionals who thoroughly understand the laws and compliance issues surrounding e-discovery and can learn and adapt to new technologies and software. These are the key factors driving the growth of the legal process outsourcing market.
Global Legal Process Outsourcing Market based on Service Location
The global legal process outsourcing market is segmented into on-shore outsourcing and offshore outsourcing. Offshore outsourcing held the second-largest share in the market in 2020 and is expected to grow at a healthy CAGR during the forecast period. Offshore outsourcing is the process of collaborating with an external organization to delegate some of your business roles to that organization. Typically, the outsourced product or service is not sold in the offshoring location; it is only marketed in the outsourcer's country.
Countries like the U.S., U.K., and Germany are outsourcing their legal data to countries like India, China, the Philippines because of higher costs associated with on-shore outsourcing legal processes. Additionally, lower wage rates and the availability of skilled lawyers are the two main factors driving organizations to outsource to other countries. Moreover, companies and legal firms are looking for strategic options to increase their customer base and maintain their quality of work.
Impact of COVID-19
The COVID-19 pandemic has wreaked havoc on various economies worldwide. Due to the high infection rates and adverse impact on public health systems, various countries had to enforce nationwide lockdowns, which significantly impacted industrial supply chains, including trade, and related services. Nevertheless, the COVID-19 pandemic has had a positive impact on the global legal process outsourcing industry.
In the global LPO market, the Philippines is regarded as an emerging country. Hundreds of American law firms outsource data entry to the Philippines. Moreover, certain services that were formerly provided by paralegals or legal secretaries in the United States are now being outsourced to the Philippines. Because of the highly educated pool of workers and fluent English-speaking people, the Philippines has become a popular LPO destination for U.S. law firms. Every day, a well-educated pool of Filipinos with expertise in the field of U.S. law joins the LPO talent pool. However, the lockdown imposed by the government to curb the spread of the virus has hindered the economy of the Philippines to a great extent. Nevertheless, the market is expected to grow at a healthy CAGR during the forecast period.
Global Legal process outsourcing Market: Regional Insights
Geographically, the global legal process outsourcing market is categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. In 2020, North America held the second-largest market share in the legal process outsourcing market. The region is expected to offer various growth opportunities to market players during the forecast period. Over the forecast period, the availability of professionals who provide legal services at lower wages will also drive the legal process outsourcing market growth in this region. In North America, the United States is the most attractive destination for legal process outsourcing services. However, due to the extreme potential for negative press and public backlash, North American companies are reluctant to outsource their legal work to a firm based outside of the United States.
The key players operating in the market include Clarivate Plc, UnitedLex, Integreon Inc., Axiom Law, WNS (Holding) Limited, Cobra Legal Solutions, Elevate Services Inc., Infosys Limited, Sunlexis, VEE Technologies, Alcor, DWF Mindcrest Inc., Lexplosion Solutions Private Limited, Quislex, Exigent, and others. These players have been adopting various organic and inorganic growth strategies like mergers & acquisitions, expansions, and recent product developments in the legal process outsourcing market to gain a competitive edge.
For instance, in March 2020, Legal technology provider, Exigent, announced the updating of its contract management software. In this update, the company has integrated AI into the software which will be used for auto-extraction and contextual search to improve data accuracy and business impact.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global legal process outsourcing market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the legal process outsourcing market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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What is the estimated value of the Global Legal Process Outsourcing Market?
What is the growth rate of the Global Legal Process Outsourcing Market?
What is the forecasted size of the Global Legal Process Outsourcing Market?
Who are the key companies in the Global Legal Process Outsourcing Market?
Table of Contents
2.2 Scope of the Study
2.3 Key Market Segments
2.4 Study Objectives
2.5 Years Considered
3.3 Regional Split of Primary & Secondary Research
3.4 Secondary Research
3.5 Primary Research
3.6 Market Size Estimation
3.7 Assumptions for the Study
3.8 Market Breakdown & Data Triangulation
4.5 Impact of COVID-19 on the Market
5.2 Porter’s Five Forces Analysis
7.3 Large Enterprises
8.2 On-Shore Outsourcing
8.3 Off-Shore Outsourcing
10.2 North America
10.5 Middle East & Africa
10.6 South America
11.2 Market Share Analysis
11.3 Major Growth Strategy in Global Legal Process Outsourcing Market
11.4 Competitive Benchmarking
11.5 Competitor Dashboard Global Legal Process Outsourcing Market
11.6 The Leading Player in terms of Number of Developments in Global Legal Process Outsourcing Market
11.7 Key Developments & Growth Strategies
12.2 INFOSYS LIMITED
12.3 WNS (Holding) Limited
12.5 Integreon Inc.
12.6 Axiom Law
12.7 Elevate Services Inc.
12.9 LEXPLOSION SOLUTIONS PRIVATE LIMITED
12.1 DWF MINDCREST INC.
12.11. COBRA LEGAL SOLUTIONS
12.14 VEE TECHNOLOGIES
A selection of companies mentioned in this report includes:
- Key Players for the market are Clarivate Plc
- Integreon Inc.
- Axiom Law
- WNS (Holding) Limited
- Cobra Legal Solutions
- Elevate Services Inc.
- Infosys Limited
- VEE Technologies
- DWF Mindcrest Inc.
- Lexplosion Solutions Private Limited