The current global recession, company mergers and acquisitions and bankruptcy filings have accelerated the growth of LPO (Legal Process Outsourcing) in India. There has been a considerable uptrend in the LPO industry since the downturn in the US economy. In particular, vendors that provide support functions, such as documentation review and legal research, have grown tremendously. Currently, the Indian legal services industry is growing at a rate of around 40% per year.

Several law firms and corporations including Baker and McKenzie, Allen and Overy, Venable LLP, Arnold and Porter LLP, Eversheds, Clifford Chance and UBS have established their captive centers in India to support their legal services. Also, the number of LPO providers has increased with the emergence of new LPOs. Currently, India is home to more than 200 legal process outsourcing providers. In addition, several companies currently operating in the BPO (Business Process Outsourcing) industry, TI/ITES have also expanded their footholds in the LPO industry. Some of the more notable names include Infosys, HCL, Patni, EXL, and Wipro. Additionally, several existing LPOs, such as Pangea3, Quislex, and Mindcrest, have seen a significant increase in the number of outsourced projects in recent months.

In a recent interview, Mr. Sanjay Kamlani, Co-Founder and Co-CEO of Pangea 3, stated that there has been a strong increase in the LPO business with revenue increasing by more than 100%. In addition, US corporations and law firms are concentrating on outsourcing their work in the areas of electronic discovery and bankruptcy litigation. Pangea 3 has also increased its staff by 50%. Similarly, SDD Global Solution, another LPO based in the Mysore location, reported a 50% increase in revenue. Another existing LPO company, Mindcrest, has nearly doubled its workforce to 450 employees in 2008 from 200 in 2007, and expects to increase its workforce by 800 employees in 2009.

Currently, the Indian LPO industry provides services in different categories including low-end services like legal transcription, legal coding, and data entry or record keeping; mid-level services such as Legal Advice and HR mobility; and high-end services such as Legal Advice services. As per the current and future expectations of the Indian LPO industry, the key growth areas in the Indian LPO industry remain in high-end services including document review, intellectual property (IP) review and contract management. The industry also expects to see growth in the areas of Risk Management and Corporate Compliance with increasing demand for transparency in the US corporate structure.

Finally, according to industry experts, the Indian LPO industry is expected to grow to $950 million in 2010. The main reason for outsourcing for corporations and law firms remains profitability. No doubt these tough times in the US economy are providing a great opportunity for Indian LPOs to have fun and achieve substantial growth.