According to a NASSCOM-CRISIL study, India is a dominant player in the Global Legal Process Outsourcing industry and is expected to continue its growth at an average rate of 25%-30% annually.

1. Analysis& Outlook
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/
According to a NASSCOM-CRISIL study, India is a dominant player in the Global Legal
Process Outsourcing industry and is expected to continue its growth at an average rate of 25%-
30% annually. NASSCOM highlights that the Indian LPO sector has engaged more than 18,000
professionals currently with annual revenue of USD 960 million and is expected to grow to USD
1.3 billion by 2015. The global market is expected to grow to $8.56 billion in 2020, from $1.39
billion at the end of 2013, according to estimates from Grand View Research. The market is
growing at over 25% on a consolidated annual growth rate basis. The US is the dominant market
for the legal process outsourcing industry and Indian LPO players are seeing opportunities in
Europe as financial services firms and companies on the continent look to cut costs. "Europe is
opening up to legal process outsourcing and we see a lot of interest from India-based LPOs.
Within a year or two we will start to see definite momentum in them setting up delivery locations
on the continent," Andrew Burgess, director at UK-based outsourcing advisory Source said in an
interview to Economic Times. "We have just seen demand from European banks which are
facing regulatory pressures. We already have one European bank as a customer, another deal is
just in closing and more deals are in the pipeline," Mohan Ayyangar, chief operating officer of
LPO firm Pangea3, told Economic Times.
Indian LPOs have significantly moved up the value chain wherein initially legal research
assignments related to finding case laws, statutes, rules and regulations were outsourced but
more work is now being outsourced related to preparing preliminary drafts of legal documents
for use in foreign courts. Further tasks such as contract management, patent drafting, prior-art
searches, due diligence and even litigation support, in the form of document review, are also
being outsourced to Indian LPOs. Most of the LPO work done in India is outsourced by financial
Services firms but other industry segments are also looking to outsource legal work to India
particularly MNCs that operates in many countries need to maintain different legal documents
and requirements as per the local jurisdiction requirements. "We are seeing an increased demand
from Europe from global Fortune 500 companies that have operations in Europe and from the
ones that are headquartered there. It's a very important market for us and we are expanding our
existing operations," Pavan Vaish, global chief operating officer for UnitedLex Corp told
Economic Times.
Europe presents a big challenge for Indian LPO players both in terms of Language and legal
systems. “LPO services started in document review and the discovery space and the main pick up
was seen in common law countries. We will have to look at LPO in Europe differently and look
at more process-oriented services like intellectual properly, compliance and contract
management," Kunal Purohit, country head for private equity-backed Integreon, told to
Economic Times. Indian LPO is smaller in size but gradually increasing its size and is expected
to continue its growth in the near future. Competition from countries like Vietnam, China,
Hungary, Czech Republic and the Philippines is increasing but Indian companies will continue to
dominate due to the quality of work and talent Indian LPOs offer, rather than their lower costs.
Global Legal Process Outsourcing Market 2014 -2010 – India Dominates as Europe Opens up