Traditionally, there are two popular modules of outsourcing the legal processes: first through Third Party Service Providers/Vendors (TPSP’s) and/or second by owning one’s Captive Unit in offshore locations. Though both are popular but one cannot rule out the risks and impediments associated with either.
Perceptions on outsourcing legal work to vendors (TPSP’s)
1. No huge capital investments required.
2. Customized solutions.
3. Competitive pricing.
4. Flexibility to scale up and down business relationship.
5. Retains decision-making, therefore relationship with TPSP is clear (fee-based, quality-based).
6. As it is a contract based mutual agreement thereby there is more business commitment.
7. Ability to focus on core business issues.
8. No compromise in quality at cost effective rates.
9. Better process maturity, resource flexibility and economies of scale.
10. Flexibility in deploying new technology.
11. No requirement to hire additional personnel.
12. No legal or statutory compliance issues to set up a new unit.
1. Risk of Confidentiality being at stake.
2. Risk of possible drop in quality standards.
3. Absence of processes to monitor metrics and possible timely intervention when issues are escalated.
4. Tight business margins.
Perceptions on owning a Captive unitPerceptions favoring:
1. Maintenance of in-house confidentiality & quality.
2. Management and retention of control over risk profile, especially for critical business areas.
3. Development for global delivery models with centralized and standardized processes.
4. All investments made on people and infrastructure is completely retained.
5. Better control over processes, time lines & enhanced quality of operations.
6. Alignment of offshore initiatives with their culture & values.
7. Creation of robust technology infrastructure for greater efficiency and scalability of operations.
1. Huge Capital Investments.
2. Recurring Costs.
3. Hassles of incorporating the captive unit offshore like India.
4. Exit impossible without incurring high costs.
5. Compulsion to keep absolute control over processes.
6. Legal Requirements to set-up captive unit, say in India:
i. Incorporation of the Company as a legal entity.
ii. Local registrations.
iii. Bank Accounts.
iv. Appointment of Company Secretaries & Auditors.
v RBI/Government Approvals.
vi. Ensuring legal and statutory compliances.
vii. Local taxation issues.
7. Human Resources requirements of captive center
i. Staffing .
ii. Training & Talent management.
iii. Hiring of Core Team.
iv. Employee retention.
8. Facilities & Infrastructure
i. Vendor Management & Negotiations.
ii. Hardware & Software Procurement Systems.
iii. Communications & Network Integrations.
iv. Acquisition and operationalizing of facilities.
With the aim to revolutionize the LPO paradigm, Draft n Craft has devised the “apt solution” destined to enrich legal outsourcing experience throughout the industry.
“The AptCaptive™ is an advanced Legal Off shoring model tailored and run as per client’s requirements by Draft n Craft, retaining all in-house benefits at reduced costs.”
For a long time, a desire was felt throughout the industry to transcend to new levels of Legal Process Outsourcing. Without doubt the AptCaptive™ is at present the lex epitome of the legal outsourcing industry. The module however is so ambitious that, in its initial stages Draft n Craft will be offering this to only a limited selected group of companies and law firms.
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