find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Outsourcing pioneer decides US is best after all

Outsourcing pioneer decides US is best after all

Almost a decade after helping to pioneer the trend of outsourcing legal work to India, a US firm has decided that things actually get done better in the US after all.Law.com reports that…

Almost a decade after helping to pioneer the trend of outsourcing legal work to India, a US firm has decided that things actually get done better in the US after all.

Law.com reports that Schwegman Lundberg & Woessner, a small patent prosecution firm, is bringing outsourced paralegal work back to the US because the initial aim of cost-cutting was no longer being met.

"There's a very large volume of paralegal work required to support patent prosecution," said managing partner Steve Lundberg. "It was working well for us because we were getting substantially lower pricing." But alas, while the arrangement worked well for a number of years, the firm eventually decided that "our productivity in the US was substantially higher" than in India.

Costs in India have risen, apparently, and automation is more prevalent, thus making it look "less and less attractive to be in India".

The firm said it originally saved about 50 per cent in labour costs for the outsourced work, based on the assumption that productivity was equal to that of the US. But the costs involved in shipping work to India, as well as management, supervision and training expenses and culture differences, all began to affect cost, added Lundberg.

"A US employee would feel a lot more freedom to take action in grey areas than an Indian employee," he said. "They would ask permission for things a US employee would do without blinking an eye."

The hierarchical nature of work in India was also a factor, he said, giving the example that if a photocopier ran out of paper, a paralegal in India would find a lowly administrative person to reload the paper instead of just doing it themselves.

"You get a lot of that type of thing going on that ends up slowing things down if there's any question about how things are going to work," said Lundberg.

Edge International consultant Jordan Furlong told Law.com that they are starting to see some examples of so-called "in-shoring" of legal work.

In June, Indian legal process outsourcer Pangea3, which was recently purchased by Thomson Reuters, opened an outpost in suburban Dallas that can accommodate up to 400 employees.

Folklaw wonders whether Australian firms should take heed and just stop with the outsourcing before they even start ...

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Outsourcing pioneer decides US is best after all
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
07:05
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
07:00
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
07:00
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...