Legal process outsourcing is one of the best things litigation firms can do these days.
Skyrocketing overhead. Increasing caseloads. Pressure to do more with less.
Clients want results. Teams are burning out. And nobody has time to figure out how to keep the lights on while also staying competitive.
But imagine if there was a way to reverse the trend.
To stop bleeding money on overhead. To re-invest in your people. To grow your business by delivering better results for clients.
What’s the magic solution?
The truth is there is no magic. There are smarter ways to operate your firm, though. And they’re proven. Repeatable. Real.
Here’s how legal process outsourcing reduces overhead for litigation firms.
(And how you can start doing the same thing.)
What’s inside:
- What Is Legal Process Outsourcing?
- Why Litigation Firms Are Switching to LPO
- What Tasks Can Be Outsourced?
- How LPO Reduces Overhead in Real Terms
- What to Look for in an LPO Provider
What Is Legal Process Outsourcing?
Legal process outsourcing, which is shortened to LPO, involves delegating legal tasks to an external provider. That provider could be located in your own country or overseas.
It applies to many of the responsibilities that come with being a litigation firm, such as:
- Document review
- Legal research
- Litigation support
- E-discovery
- Contract drafting
- Compliance support
Essentially, it allows firms to “staff up” on demand without the overhead of traditional employee relationships.
For litigation firms dealing with injury claims such as bus accident cases, LPO can be particularly helpful.
Bus accident injury claims can generate tons of paperwork. Medical records, police reports, witness testimony, insurance filings. You name it. Personal injury lawyers see it.
And clients expect their pennsylvania personal injury attorney to understand every detail… fast.
By outsourcing those busy tasks, law firms can free up internal resources and improve their bottom line.
Why Litigation Firms Are Switching to LPO
Let’s look at the hard facts.
Over half of law firms across the United States outsource some portion of their legal work. According to recent research, that number is actually closer to 47% for litigation support and e-discovery alone.
That’s not a fluke. There’s a reason so many lawyers are changing how they do things.
In the past, most legal work was predictable. Some months would be slower than others, but firms could handle ebb and flow by staffing appropriately.
Today, litigation is a different beast. There is no “normal.”
Bus accident injury lawyers, for example, might see their work double (or triple) after a major accident hits the news. Personal injury firms can go from slow to stressed almost overnight if they don’t have flexible support staff ready to step in.
Law firms used to simply hire more people and pay them to sit on the sidelines. That meant overhead costs went up — whether they were busy or not.
Legal process outsourcing lets firms scale up without the overhead. Recoverable costs are much easier to manage.
Plus…
79% of firms using LPO report saving money AND providing better service to clients. Normally, those two goals aren’t compatible. But LPO makes it possible.
What Tasks Can Be Outsourced?
There are tasks that should always stay in-house. But outside of court appearances and client meetings, very little else does.
Reviewing medical records? Outsourcing.
Researching past case law? Outsourcing.
Sending demand letters? You guessed it.
Drafting e-discovery documents? Outsourcing.
Here are just a few of the things law firms can outsource:
- Medical record review and summarization — critical for personal injury and bus accident injury claims
- Legal research and case law analysis — time-consuming but highly delegable
- Demand letter drafting — especially useful during high-volume claim periods
- E-discovery and document review — one of the most expensive in-house operations to maintain
- Deposition summaries — detailed but repetitive work that takes up attorney time
- Billing and administrative support — reduces non-billable time for senior staff
Attorneys should be spending their time where they add the most value. Not buried in documents that can be reviewed by someone else.
How LPO Reduces Overhead in Real Terms
Okay, let’s talk about money.
Employing a legal support staff in-house is incredibly expensive. You have to pay their salaries, benefits, and training costs. They’ll need access to specialized software (which isn’t cheap) and office space.
E-discovery alone can cost firms upwards of $200,000 per year just to get started. And that’s before any documents are reviewed.
With LPO, most of those overhead expenses go away.
Say you need to review hundreds of documents for a busy bus accident injury claim. Instead of paying an attorney to grind away for weeks on end, you let a specialist firm handle the heavy lifting.
Not only will providers have easily scalable pricing, but they can also bring their own technology, virtually eliminating overhead costs.
Firms that switched to legal process outsourcing reported savings of up to 35% over the traditional model.
Here’s how those cost savings break down.
Staff
No more full-time employees eating away at your budget. An LPO provider will handle staffing up or down as needed.
Technology
An LPO provider shouldn’t make you purchase new technology. They should already have it.
Training
Attorneys should be spending their time developing skills that bolster their client services, not flipping through documents.
Space
There’s no need to dedicate prime office real estate to a support staff that only ramps up during busy times.
What to Look for in an LPO Provider
Don’t just sign the first LPO contract that comes along.
As with any legal service, it’s important to know who you’re getting into business with.
Here are four traits to look for before hiring an LPO provider:
Industry experience. Does the company have experience working with personal injury lawyers? Bus accident cases? Those with knowledge of your practice area will always outperform general firms.
Data security. Medical records, police reports, personal testimony. Clients expect their information to be protected. Make sure the provider is clear about how they keep data secure.
Scalability. Being able to ramp up is great, but there shouldn’t be extra charges during slower periods. Scalability works both ways.
Transparent fees. Everyone dislikes surprise fees. Get a quote up front. And if the price seems too good to be true, it probably is.
Wrapping This Up
Legal process outsourcing is not a revolutionary idea.
It’s one of the best ways for litigation firms to save money without sacrificing quality or employee morale.
Enough firms have already done it that there are success stories everywhere you look.
If the goal is to reverse the trend and start bringing money back into the firm, LPO should be at the top of the list.
Find a provider. Test out the workflow. Scale as results come in.
It’s the simplest way to start improving the bottom line right now.
