Meltdown may mean more business for LPOs
I-bankers in US increasingly shifting credit crisis-related work to lawyers in India.
By Paramita Chatterjee, ET Bureau |
NEW DELHI: Even as the global meltdown casts its spell on India, there is one sector which could see more action in the coming months. Legal process outsourcing (LPO) is set to witness a surge in business, with more corporate houses and investment banks from the US turning to them for legal advise.
Bankruptcy filings in the US have gone up in the last couple of months and that inturn has raised the demand for lawyers. Corporate houses in the US are increasingly shifting their credit crisis-related work to lawyers in India as it is a more viable and cost-effective option.
Leading LPOs such as Pangea3, Quislex and Mindcrest, among others, have seen a significant jump in the number of outsourced projects in the last few months. ���The demand for LPOs is on the rise as legal work related to bankruptcies in the global market has increased,��� said Pangea3 VP Legal Services Antony Alex. Industry experts said the turmoil in the financial services sector is driving more legal outsourcing to India. ���Since appointing a lawyer is expensive overseas, specially in the US and UK, it is natural for corporates to shift higher value work to India at this time of crisis,��� said a source.
There are over 200 LPOs in India and the number is expected to go up significantly in the next few years. The industry has grown at over 60% year-on-year . The market stood at Rs 630 crore in 2007.
A recent study by Value Notes, a firm that provides equity research and financial and stock market information, had forecast revenues from offshoring legal services in India to reach over Rs 2,770 crore creating jobs for over 24,000 people by end of 2010.
Bankruptcy filings in the US have gone up in the last couple of months and that inturn has raised the demand for lawyers. Corporate houses in the US are increasingly shifting their credit crisis-related work to lawyers in India as it is a more viable and cost-effective option.
Leading LPOs such as Pangea3, Quislex and Mindcrest, among others, have seen a significant jump in the number of outsourced projects in the last few months. ���The demand for LPOs is on the rise as legal work related to bankruptcies in the global market has increased,��� said Pangea3 VP Legal Services Antony Alex. Industry experts said the turmoil in the financial services sector is driving more legal outsourcing to India. ���Since appointing a lawyer is expensive overseas, specially in the US and UK, it is natural for corporates to shift higher value work to India at this time of crisis,��� said a source.
There are over 200 LPOs in India and the number is expected to go up significantly in the next few years. The industry has grown at over 60% year-on-year . The market stood at Rs 630 crore in 2007.
A recent study by Value Notes, a firm that provides equity research and financial and stock market information, had forecast revenues from offshoring legal services in India to reach over Rs 2,770 crore creating jobs for over 24,000 people by end of 2010.
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