Legal outsourcing : Which solution to choose?

July 5, 2024

Insights on legal domains

What is legal outsourcing and why more and more companies use it?

Legal outsourcing, also known as Legal as a Service (LaaS) or Legal Managed Services, is becoming increasingly popular in Continental Europe, catching up finally with the US and the Asia Pacific region.

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But what exactly is legal outsourcing, and why are so many companies adding this option to their solutions?

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Legal outsourcing involves entrusting to an external company the efficient handling of legal mission with a commitment on the results, not the means. Legal outsourcing companies typically rely on robust IT systems and amix of personal profiles and expertises. This approach offers numerous advantages, including cost savings, increased efficiency, flexibility, and access to specialized expertise.

Key benefits of legal outsourcing

‍Cost savings: Outsourcing legal services can be more affordable than maintaining an in-house team or hiring traditional law firms. By leveraging the efficiency and scalability of external providers, companies can reduce their legal expenses significantly.
Efficiency: Specialized legal outsourcing providers are geared to manage services more efficiently. They utilize advanced legal technologies and processes that streamline tasks such as contract review, compliance checks, and document drafting.‍
Flexibility: Legal outsourcing providers can scale their support based on the client's needs. This flexibility is particularly beneficial for companies experiencing fluctuating legal demands.‍
Access to specialists: Legal outsourcing firms have a broader base of specialists that clients can rely on. This access to diverse legal expertise ensures high-quality outcomes for complex legal issues.‍

Comparison between different external support types

When considering legal outsourcing, companies can choose between hiring an external lawyer, a temporary legal professional, or using a LaaS provider. Here's how these options compare:

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Solution	Cost	Flexibility	Expertise	Quality
External lawyer	Rather high	Variable	Variable	Variable
Temporary legal professional	Medium	Medium	Medium	Medium
LaaS provider	Medium	High	High	High, steady and process-based

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Legal outsourcing offers a high-value proposition for companies needing legal services quickly and reliably. By outsourcing legal tasks to qualified professionals, companies can achieve quality results at affordable prices. Additionally, legal outsourcing reduces the risk of legal errors or disputes, ensuring adherence to high standards of quality and ethics.

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Challenges in sourcing a legal outsourcing provider

1) Finding a reliable partner:

It's crucial to find a provider that operates within the customer's market, as legal regulations often have a territorial scope of application.

2) Assessing qualifications:

Evaluating the qualifications of a legal outsourcing provider can be challenging. A practical approach is to conduct a test of the services to ensure they meet the required standards.

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3) Cost management:

Understanding the cost structure of legal outsourcing services is vital. Instead of focusing on the cost per hour, consider the overall cost per typical mission to get a clearer picture of the expenses.

4) Ensuring quality and consistency:

Establishing governance mechanisms is essential to maintain the stability and quality of the outsourced legal work.

Conclusion

Legal outsourcing is a smart alternative to hiring traditional law firms, providing more flexibility, transparency, and cost-effectiveness. By outsourcing legal tasks to qualified professionals, companies can achieve quality results at affordable prices while reducing the risk of legal errors or disputes.

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Curious if legal outsourcing can add value to your company’s legal risk management? Let’s discuss it over a warm drink and explore the possibilities!

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