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Law Firms Outsource Jobs Offshore [by Anayat Durrani] These days, jobs and the economy are on the minds of most voters as Election Day has come and gone. A political hot topic that surfaced during the debates is the controversial issue of outsourcing jobs overseas, a route pioneered by the IT industry. But as Election Day has passed, the spotlight is expected to fade on the issue, as a number of corporate law departments and law firms, prompted by a weakened economy, increasingly look to outsourcing work offshore to manage costs and increase profitability.
Hollywood, CA, is not considering outsourc-
Now that the election is over, law firm off-
India, the location of Intellevate’s support
shoring will continue to accelerate, accord-
center. The fact that “India works while we
ing patent work overseas. Marc Hankin, the
ing to Leon Steinberg, CEO of Intellevate,
sleep” results in work being done 24 hours a
company’s founder, believes doing so could
a Minneapolis-based outsourcing company
day and yields a faster turn around time, he
prove problematic, and not merely because
that provides legal support services, such
said. Mr. Steinberg also said the cost savings
of language barriers or time zone differ-
as paralegal, docketing, technical research,
and the reduction in risk were other advan-
ences. “First, there is the security issue.
and/or bookkeeping functions to its clients.
tages. “Because wages are lower, through
Technology may not be exported to other
“Law firms are political animals, and many
India more time and care can be taken.”
countries without express permission of the
of them are unwilling to put a stake in the ground until the elections are over.”
U.S. government. Even were that available, India has become the center of outsourced
there is the issue of our client getting ripped
work, especially in such cities as New Delhi,
off and having little chance to discover it, and
In recent years, outsourcing has become big
Bangalore, Mumbai, and Hyderabad. Mr.
less of a chance to do anything about it.”
business for legal outsourcing groups like
Steinberg, whose legal-services support cen-
Intellevate LLC, Mindcrest, and Office Tiger.
ter is located in New Delhi, said his company
Mr. Hankin also stressed the issue of quality,
Industry participants estimate the potential
chose India because of its high population of
saying that the majority of the work they do
for orders from U.S.- and U.K.-based law
advanced degree holders who receive their
for their clients requires thorough working
firms could range between $2 billion and $4
education in the English language. Steinberg
knowledge of American law and the nuanced
billion a year, according to a report by Dow
also noted that the prevailing wage in India
cases of the United States Court of Appeals
Jones. The bulk of the work being outsourced
is 25% of the prevailing wage in the U.S. For
for the Federal Circuit. “There are other,
is “back-office” work such as legal research
example, a patent lawyer with little US pros-
subtle, legal parameters as well. I find it
services, word processing, copying, legal
ecution experience may make over $80,000 in
hard to believe that someone outside the
transcription, accounting, and other admin-
the U.S. and less than $20,000 in India,” said
U.S. would understand these enough to do
istrative support. Based on industry data, top
Mr. Steinberg. Another advantage of India, he
a good job avoiding the pitfalls…I doubt that
200 U.S. law firms spend nearly $20 billion
said, is that its legal system is based on the
I would entrust my clients’ work to anyone
annually on operating costs, with office
British model, as is the United States. This
overseas.”
operations and documentation management
has led many corporate law departments and
making up 46% of total expenses, the report
law firms to rely on lawyers in countries like
Trojan Law Offices, a patent and trademark
said.
India, New Zealand, and other similar Brit-
litigation law firm based in Beverly Hills,
ish-modeled countries to cut costs.
does not currently outsource work overseas but is considering it as long as it is properly
Mr. Steinberg said Intellevate has doubled in
supervised by U.S. counsel.
size in the last year and expects to double in
Despite its seemingly growing trend, law
size again in another 6 months. Intellevate is
firms who do outsource are not always will-
majority owned by shareholder attorneys at
ing to disclose it, and the companies helping
In the meantime, outsourcing remains a
Schwegman Lundberg Woessner & Kluth, a
them outsource are also mum on the subject.
lucrative business for companies like Office
nearly 60-lawyer patent firm in Minneapolis,
Then there are others who oppose outsourc-
Tiger and Hildebrandt, who began a joint ven-
a firm that also is a customer of Intellevate’s
ing and feel it may not be the best option for
ture in June to provide “back-office” support
services, according to Minnesota’s Pioneer
some law firms.
services to leading U.S. and U.K. law firms.
Press. Mr. Steinberg cited several advantages to outsourcing legal work to countries like
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One of these firms includes U.K.-based Allen Hankin Patent Law, a firm based in West
& Overy, which has some 3,300 partners and
continued on back