Feasability whether to do some of your departmental work inhouse or outsource

1. June,2016
Law Firm feasibility study

2. - 1 -
Table of Contents
1
2
Overview
Major trends
4
Law Firm Feasibility
6
3 Looking Forward

3. - 2 -
Research
1. Business Research
2. Web News/Content
3. others
Strategic initiatives
1. Competitor Intelligence
2. Strategy Research
3. Competitive pricing
1. Need for Study – Overview
Source :
To explore new opportunities whether to do it in-house or Outsource. we need to have an overview of all
the departments, which includes various activities under separate department
Business Development
1. Marketing
2. CRM
3. Marketing Collateral
4. others

4. - 3 -
2. Major trends and Stats…
Source : LexixsNexis
Some of the major trends and stats of all the law firms in the World
Trends
New client acquisition costs
more
New
Client Retention is
more profitable
Clients buy from firms they
already know
Buyer’s market
Market share won, is not
market share retained
Risk of client attrition
Client satisfaction is all time
low

5. - 4 -
3. Looking Forward…
We have to divide the entire processes into 5 phases which will help us to consolidate the department and help us
understand whether, everything is working out well for us or not
Assess Feasibility
Design
Build and Test
Implement and
rollout
Optimize
Key activities
• Developing the vision –which means defining how process could be split in between in house and outsourcing
• Define the technology to be used,assess possible location and agree on the most appropriate solution
• Setting out Financial and non financial benefits ,helps in decidind a go or no go decision
Once decided to outsoucer ,we'll have to look at the designing process
• Detailed picture of how a future process would be – who will do what ,where they will do it and how
This is the phase where everything comes together
• This process will show the close integration and process design ,the technology that support the entire
enterprise
Go Live – This process will decide whether everything works well for you or not
• Helps in identtifying ,whether the solution works for you or not ,or you want something more
Outsourcing is not the end of the journey
• We optimize our process at regular intervals for further improvemnets to derive high level of services and
cost efficiency
Phases
1
2
3
4
5

6. - 5 -
4. Law firm Feasibility - Whats Happening? (1/6)
Source : Williams Lea
Today Most of the Law firms are adopting Business practices from other Industry segments and experts as the laws of
economics apply equally to law firms as to other businesses
Change the
Governance model
Productize the
offerings
Don’t guess
Forecast
Compensate for
retention and profit
Measure client
satisfaction
regularly
Leadership and
Management
training
Embrace strategic
pricing
Reduce the cost of
goods sold
Reduce
Inefficiencies
1 2 3 4 5
6 7 8 9 10
Invest in knowledge
management
Here, Most of the Firms practices it to develop in-house and after sometime to increase the efficiency we need to keep thinking to improve
and which can be done via outsourcing some of the practices which they have outsourced so far is like to reduce inefficiencies ,strategic
pricing ,product offerings and many more

7. - 6 -
Centralized
back office
Overview of Various law firm and why they want to outsource (2/6)
Source : Williams Lea
As per Williams Lea, Global Legal Outsourcing is worth $8.5 Billion and 2014 was the year when most of the law firms
crossed the Rubicon when it came to expanding the types and activities of back office support and administrative
functions they undertook through utilization of outsourced services
Why Firms are looking to Outsource ?
• Pressure from clients to reduce cost and the need to show
clients progress are the prime reasons for outsourcing
• In addition clients remain most concerned about whether firms
are sufficiently emphasizing data security and data protection
measures
• Management of process and workflow reengineering also are of
primary interest to firms with 64% citing it as a “top need"
• Centralization is also the key enabler for outsourcing
• Prioritization of workflow processes improvements and related
technology investments
• Some of the firms are using client best practices and are looking
to gain better command of resources and processes through
centralization.
• Proliferation of new entrants in the market is also a challenge
• Labour cost differention which cost uo to 80% less then the US
and the UK firms for Ex in India ,Phillipnes
• In India Well Qualified Attorneys from US and UK qualification
are available
• Most of the outsourcing companies work 24/7
Persistent Cost pressure
2009 2013
92% 83%
1
40%
Centralized Mixed
and Local
27%
Global
Locations
6%
Technology Improves process
56%
Technology increases the
amount of savings
Centralization is the key2 3
Investment
in Technology
32%
Cyber Security &
Data Protection
24%
Growing Expenses4
Cost Saving
77%
Efficient
service
65%
Improvement of Process
and procedures
60%
Benefits of outsourcing5

8. - 7 -
Overcapacity of staff members has effected the profitability of various
firms globally that’s why these firms are moving towards outsourcing
Law firm Feasability study (3/6)
Source : Altman Survey 2015
As per the survey done by Altman , they have provided some of the interesting facts of the legal world ,wherein the
competition is going to get tougher with the introduction of outsourcing and contract lawyers in the market
Demand of Services has increased
32.1%
11.0%
8.1%
22.1%
25.3%
1.3%
Demand is already at or above
prerecession
Will return in 2015
Will return in 2016
Will return in the next 3 to 5
years
Not in the foreseeable future
Never
Overcapacity effecting profitability
60.6%
34.1%
5.3%
Yes
No
Don’t know
Employee Comparison by firm size
61.1%
56.3%
44.4%
24.7%
10.8%
4.9%
18.1%
Using part-time lawyers
Using contract lawyers
Using staff lawyers
Outsourcing non-lawyer functions
Creating a low-cost service center for…
Outsourcing legal work
None
Alternative staffing strategies
Demand of services has already been increased and has not been
effected so far
Larger the size of the firms increase in the volume of part time
,contract employees
Some of the larger and smaller firms has already adopted
outsourcing which is considered as the necessary tool for savings
1 2
3 4

9. - 8 -
Law firm Feasibility study (4/6)
Source : Altman Survey 2015
Today Law firms are adopting Business practices from other Industry segments and experts as the laws of economics
apply equally to law firms as to other businesses
Outsourcing looks permanent
52.3%
50.7%
46.4%
45.5%
41.1%
2015
2014
2013
2012
2011
Legal trends
94.40%
92.60%
84.30%
52.30%
73.10%
72.40%
44.80%
More price competition
Focus on improved practice…
echnology replacing human…
Outsourcing legal work
More part-time lawyers
More contract lawyers
lowdown in growth of profits… Temporary
Not sure
Permanent
Some of the permanent trends present in the industry without which
industries couldn’t compete in the long run
Outsourcing has been considered as the permanent trend due to which
everyone has accepted and it has been increasingly adopted by everyone
in the industry
65
As per the Current survey done by Altman, it seems outsourcing is the key to the future for various firms across the Globe.
To remain competitive and futuristic firms are adopting to remain efficient and effective in every field whether Business
development ,research ,content development etc

10. - 9 -
Law firm Feasability study (5/6)
Source : Williams Lea
Law firms on average firms spent 3.4 percent of their annual collected fees on marketing and business development
activities in 2013 -- up from a previous level of only 2.3 percent in 2012
Benefits of
Outsourcing
Key Benefits of outsourcing
• An improved focus on core competencies and creates the culture of Innovation
• Outsourcing business development is the only practical answer to increasing growth while maintaining or
decreasing costs
• Reduced overhead. By engaging a marketing outsourcing firm, businesses can avoid or reduce the cost of
additional office space, computers, vendor relationships and access to credit required when marketing projects
are handled in-house
• Outsourcing business development can work several ways, all of which will prove to be more efficient in
generating new business than if you were to do it in-house.
• Continuity & Risk Management - Outsourcing will provide a level of continuity to the company while reducing
the risk that an inadequate level of operation would bring to the company’s growth.
• It helps in fully capitalize on the benefits, and fully integrate the efficiencies, of marketing outsourcing.
• Access to an expanded talent pool. In-house marketing staff may not always have the skills needed, especially
on larger, more complex projects
Key services
provided

11. - 10 -
Law firm Feasibility Study (6/6)
Cost Incurred
S.no Position Per /Hour Salary in
USA(if Done in-
house)
Per /Hour Salary in India (if
outsourced)
Benefits
1 Business Development
executive
$ 18 Per Hour $3 Per Hour Saving 6 times cost
2 Business Intelligence
database like Hoovers
$10 K per Month
depends upon the
user
Here the cost of database is
40-60% less due to mass
usage
If Outsourced company don’t need to
spend more
3 Software License fees $5-10 K Depends
upon the user
Here the cost of database is
30-60% less due to mass
usage
Hence cost will remain 1/3rd to the
firm
4 Legal Assistant $13 Per hour N/a All Savings
5 Admin Assistant $12-17 per Hour N/a All Savings
6. Para legal assistants $17-23 per hour $5-10 Per hour Hence you will save 1/3rd of the cost
of the firm
Few of the cost points wherein outsourcing is very effective to save millions of dollars and to remain
competitive and efficient player in the market
Outsourcing key Domain like Contract management ,Research and some of the Business development activities could be useful to
save millions of Dollars. But, some of the activities like Strategic pricing ,creating value for your brand could be some of the
challenges which needs to be done in-house. Hence ,it also depends upon firm-to-firm to decide upon these factors