LPO industry to suffer from economic downturn for short term:Report

NEW DELHI: Facing the heat of recessionary pressure, India's legal process outsourcing (LPO) industry is likely to see a decline in revenue and is expected to reach $440 million dollars (around Rs 2,000 crore) by 2010 end, a report said.

According to a report by business intelligence & research firm ValueNotes, global economic downturn has slowed down LPO industry and is changing the service provider's landscape.

"Revenues from the offshore legal services industry were USD 320 million for 2008 and are expected to reach USD 440 million by 2010 end," it said.

The offshore legal services industry grew at a rapid pace until 2007. However, the slow down in buyer market impacted the offshore industry resulting in falling growth rate.

The industry that was growing at a compound annual growth rate (CAGR) of over 40 per cent over the last four years until 2007, dropped to 28 per cent in 2007-08, and further reduced to 16 per cent for 2008-09.

The fall is primarily due to recessionary cost pressures impacting the global legal services market and the subsequent affect on the number and value of offshoring contracts, the report said.

However, industry experts are hopeful about the future of Indian LPO sector.