Archive for the ‘document review’ Category

14 Year Old is a Doc. Review Star

Wednesday, August 11th, 2010 by admin

The child was hired by Barings & Whitmore to help complete a document review project.  He did such an excellent job that they dumped the rest of the attorney staff and let the wee lad finish the coding.  Apparently, the kid’s a machine!

Okay, it might be a joke.

Sullivan and Cromwell gets Goldman Defense Work

Tuesday, April 20th, 2010 by admin

spacerA tip for out of work contract attorneys, S&C will be “taking the lead” in the  Goldman Sachs defense work.  There will surely be a large review conducted at S&C gearing up soon, so stay tuned.

Contract Attorneys Shut Out of New ABA Policy

Thursday, April 15th, 2010 by admin

There are some interesting reactions in the Blogosphere to the ABA’s call for comments in regard to its formation of an official outsourcing policy.

First, from Kimberly Alderman over at Lawyer On!, compares contract attorneys to freedom fighters.  The ABA’s request for comments, she notes, conveniently leaves us out of the equation.

Next, the National Association of Feelance Legal Professionals has a great post summarizing this snub. As a side note, this might be a good organization to join.

Lastly, Tom the Temp, also has a riff on the ABA’s call for questions.

In my opinion, this appears to be a deliberately crafted omission of contract attorneys, the group most affected by the ABA’s current policies on outsourcing.  What the ABA really wants to know is how much money can be saved by large corporations and how it will ultimately affect Biglaw.

We are just the overflow workers who have zero voice or say in the matter.  As some have called us, we are the “Mud People” of the law;  nameless, faceless, anonymous drones who are permitted no opinion or participation.  To the ABA we obviously don’t count for much.

Update on Microsoft’s Legal Process Outsourcing Deals

Thursday, April 15th, 2010 by admin

In its latest LPO deal, Microsoft has outsourced its document review services to India with Integreon.   The Redmond giant will also use Integreon’s contract review services, located in North Dakota.

Earlier Microsoft agreed to a deal with CPA Global, in which it established,

A team of between three and five qualified lawyers at CPA now handle multi-jurisdictional legal support work, including legal research, at a base in Gurgaon, near Delhi.

Too bad for all of the document review attorneys at K&L Gates.  I would imagine that many have been let go.

Robert Reich – Outsourced Jobs not Returning

Monday, April 12th, 2010 by admin

Robert Reich authored a piece in today’s Wall Street Journal in which he concludes that outsourcing is having a devastating effect on our economy.   He states,

The Great Recession has accelerated a structural shift in the economy that had been slowly building for years. Companies have used the downturn to aggressively trim payrolls, making cuts they’ve been reluctant to make before. Outsourcing abroad has increased dramatically. Companies have discovered that new software and computer technologies have made many workers in Asia and Latin America almost as productive as Americans, and that the Internet allows far more work to be efficiently moved to another country without loss of control.

Companies have also cut costs by substituting more computerized equipment for labor. They’ve made greater use of numerically controlled machine tools, robotics and a wide range of office software.

He continues,

The only way many of today’s jobless are likely to retain their jobs or get new ones is by settling for much lower wages and benefits. The official unemployment numbers hide the extent to which American workers are already on this downward path. But if you look at income data you’ll see the drop.

Among those with jobs, more and more have accepted lower pay and benefits as a condition for keeping them. Or they have lost higher-paying jobs and are now in new ones that pay less. Or new hires are paid far lower wages than the old. (In January, Ford Motor Co. announced that it would add 1,200 jobs at its Chicago assembly plant but didn’t trumpet that the new workers will be paid half of what current workers were paid when they began.) Or they have become consultants or temporary workers whose pay is unsteady and benefits nonexistent.

All in all, a rather grim future of falling wages, increased workplace instability and global competition will continue to drive down pay and benefits for private sector workers.  These same workers will be subject to increased taxation to pay for state and federal programs, which are already collapsing.

Who said Outsourcing to India Saves Money?

Monday, April 12th, 2010 by admin

Our friends over at Global Legal (outsourcing consultants) are offering an “Outsourcing Bootcamp” for American and U.K. legal practitioners.  This event is priced at decidely first world rates.  From their blog,

Registration
The early bird registration deadline has been extended! Delegates who register and pay by April 23rd will receive the discounted rate of $1,575. The regular fee of $1,895 applies thereafter.

Don’t delay: A business visa for India may take several weeks to process.  Register today online or contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it for further information.

Not only do you have to arrange for your own airfare and visas, it appears you have to pay for your own lodging as well.  It seems like a rather expensive gambit just to learn how to send document review to India.

Couldn’t they just hold this conference over the Internet, for say $5 per hour?  They must take UK and American lawyers for suckers!

LPO “Tsunami” Predicted

Monday, April 12th, 2010 by admin

In the April 16, 2010 issue of the Canadian publication Lawyers Weekly is an article entitled, “Here Comes the LPO Tsunami”, by Jordan Furlong.  This general thrust of this article is that the Legal Process Outsourcing (LPO) business model will be far more prevalent than perhaps many lawyers currently realize. The LPO push will be similar to the BPO (Business Process Outsourcing) shift that took place in 1980s Corporate America.

Law firms are sitting ducks, as their business models are outdated, inefficient and far too costly.  For example, the article posits Indian attorneys can perform much of the same work as untrained U.S. licensed associates for about 85 per cent less.  A major frustration with general counsels has been that they feel they should not be obligated to pay for the training of a never ending stream of first year associates, billed out at hundreds of dollars per hour and providing little added value to their clients.  They serve only to enrich themselves with fat salaries and padding the firms profits per partner.

I would encourage anyone in law school now or thinking about assuming large quantities of debt in law school to read this article.  The legal industry (profession to some) is undergoing rapid, evolutionary change.

It is yet another warning that legal services are undergoing commoditization and massive, worldwide divsion of labor.  The cat is out of the bag, legal work is for the most part, routine and uncomplicated.  What it does require is focus and attention to detail, akin to that of an assembly line worker. Anyone that has worked on a document review knows this.

Much like the old time automobile (or countless other industries) factory workers, today’s lawyers face a massive restructuring and globalization (offshoring and outsourcing) of their profession.  “Biglaw” firms will continue to contract, shedding non-performing, redundant staff that can be hired elsewhere around the globe more cheaply.  Only the most complex, sophisticated and confidential matters will be retained exclusively in the large law firms.  General counsels will continue to chip away at the bottom line eroding biglaw profits and influence.  What will emerge is yet to be known, as the evolution of the legal industry is just beginning.

What does this mean for contract attorneys?  It would seem that this is largely bad news for the monline document reviewer.  Much of your work is already being sent overseas or performed here at cut rate prices in low cost jurisdictions.  For those with more substantive experience, there will initially be more opportunity to work as contract attorneys, doing work that associates used to do.  The downside is that this will be at reduced prices and without any bonus participation.  So while the contract attorneys are pulling all nighters and grinding long hours like they did as associates, they will just be used up and sent packing when the case is resolved.  Partners, as always, will continue to call all of the shots and reap all of the rewards.  But their profits will erode as the the general counsels use LPOs and other legal services firms, shifting client money away from biglaw.

Foreign Law Firms in India Not Permitted to Perform even Non-litigation Work

Monday, March 22nd, 2010 by admin

In this latest brutal irony, a petition has been filed to prevent foreign law firms from performing even routine tasks such as contract drafting or document review in India.  Of course our esteemed ABA has greenlighted wholesale exporting  of American legal work to India and is furiously drafting new policies to liberalize licensing requirements for foreign lawyers here in the United States.

Am I the only one to think there is something grotesquely wrong with this scenario?

In another cruel twist,  it appears they are even throwing some of the foreign outsourcers out.

Speaking to Bar & Bench, one of the members of the Association, Karthikeyan, said “the issue is no longer about the entry of foreign law firms, it is also about the manner in which these foreign law firms continue to do business in India despite a ban on them. These firms have already entered India indirectly and are operating out of five star hotels and business centers”. “The lawyers working at these foreign law firms enter India using visitor visa thereby violating immigration norms. Also, the work is done in India but billed in foreign countries, and thereby the foreign firms avoid paying taxes to the Indian Government”, he said.

The Bar Council of India, Union Law Ministry, External Affairs Ministry and the RBI are amongst the Government respondents. There are 31 foreign law firms in the dock including UK’s Allen & Overy, Clifford Chance, Linklaters, Freshfields and US law firms, WilmerHale and Shearman & Sterling. Integreon, one of the largest LPO’s in India has also been dragged in this dispute. Several law firms including Allen & Overy and Simmons & Simmons have outsourced legal work to Integreon.

The writ petition does raise the issue of entry of foreign law firms, however, interestingly it also stresses on other aspects such as the manner in which these foreign law firms currently provide legal services in India. Here are some of the issues:

Entry of Foreign Law Firms – Immigration Law violations

The Association has not only questioned the entry of foreign law firms, it has also challenged the mode of entry of the foreign lawyers into India, as it has alleged immigration law violations by foreign lawyers. Most lawyers working at these foreign law firms, especially in the Capital market space visit India using tourist visas. A Magic circle firm associate who didn’t want to be named said “procuring tourist visas to India is the easiest way to visit India. Therefore, most lawyers opt for it, since our visits do not last more than two weeks at a stretch.”

Law Firms in the guise of LPO’s

The writ petition also alleges that most foreign law firms exist in India through the Legal Process Outsourcing (LPO) outfits. The petition states that most foreign law firms have their back end offices in India, which not only does their back end activities, but also provides legal services in India. Clifford Chance is one such law firm, which has a back office in India. The Clifford Chance back office is supposed to undertake only office billing and technology related work for Clifford Chance and its best friend in Saudi Arabia, Al-Jadaan & Partners.

Law as a business as opposed to ‘Noble Profession’

Bar Council has imposed various restrictions on the practice of law in India including restrictions on advertisement of legal services by lawyers. The practice of law is treated as a noble profession in India, but the foreign law firms are treating it as a trade or business and a ‘money spinner’. The Association has annexed the pages from the websites of the foreign law firms and newspaper clippings about these foreign law firms claiming to have an India practice. It is alleged that these instances tantamount to ‘advertisement’ of legal services by the foreign law firms in India.

The Indian Bar is taking a far more proactive stance in protection its constituents than the ABA and many state bar associations.

“How to” Guide to Outsourcing Published on ABAnet

Tuesday, March 16th, 2010 by admin

Some helpful tips for those looking to outsource all of that messy backoffice stuff like document review, e-discovery, research, writing motions and ISDA (and other) agreement drafting.

But thankfully, there is some counter-evidence, showing the downside and debunking some of the many outsourcing myths published elsewhere.  Below is an interesting quote within this piece from another article by Kevin Stringer of Strategy + Business.

“In offshoring location studies, a large population has often been considered a positive factor, since it implies a reservoir of available, low-cost talent. Further analysis, however, reveals that the number of people in a country — or even the annual number of college graduates — says little about the quality of the workforce. For example, China’s population is 16 times larger than that of the Philippines, but its pool of suitable, young, English-speaking engineers is only three times as big. The situation is similar in India. There the number of recent graduates exceeds, in gross terms, that of China and the United States combined. With approximately 230 state-accredited universities and 458 engineering colleges, India mass-produces 2.5 million graduates for the labor market each year. Yet only about 2 to 5 percent of India’s existing workforce has basic vocational skills, compared with 96 percent in South Korea, 75 percent in Germany, and 68 percent in the U.S., according to Indian government reports.”

There are more details about resources, sustainability and production – but the killer line for indigenous manufacturing supplier comes at the very end.

“The new criteria for knowledge-driven offshoring will be skills, talent availability, productivity, and sustainable working environments rather than labor cost advantages and massive worker pools. A more refined and sophisticated use of broader metrics will be necessary for companies to reach informed offshoring location decisions focused on sustainability. In a world of choice, this approach will surely make smaller, high-quality countries more attractive destinations.”

LPO Revenue Predicted to be $17 Billion by 2015

Sunday, March 14th, 2010 by admin

Sandeep.DubeyOne might suggest that this prediction is a bit of an overstatement, as current revenue is between $400 million to $1 billion (depending upon the source).  However, a recent article by Sandeep Dubey addressing young Indian lawyers, suggests that the legal profession is booming over in India, especially for new attorneys.  No doubt there is the usual mix of Indian hyberbole, but there is a substantial kernel  of truth here.  It’s a far cry from the desperation of the current crop of recent American law graduates.  From the article,

“LEGAL PROCESS OUTSOURCING: more commonly known as LPO industry, is latest kid in this field. Today, it contributes only about 1 billion dollars in revenue, but as per NASSCOM survey, by the year Two Thousand And Fifteen, it is expected to reach about 17 billion dollars in revenues. Many big Indian companies have diversified to LPO. The work in LPO comprises of legal research, drafting, paralegal services on  Intellectual property rights, Wills and Living Trust and Legal Research etc. Outsourcing legal work to India cost up to 80% less than the cost of using the services of American Law Firms.

The advantage of the time zone, availability of English speaking attorneys and familiarity with common law doctrines attracts foreign firms to India. Many Indian Law firms have opened up off shoots of LPO business to cater to international law firms. The average starting monthly salary of an attorney working at an LPO is approximately Twenty Five Thousand Rupees.

Apart from this several young law graduates are joining the management course after completing law and are setting up their own business after graduating.

Further, I would like to add that young lawyer like us are really blessed to has The Mentor like Mr. P.H. Pareekh who guides us professional and actively work for the betterment of young lawyers. He also encourages young talents which is very much evident from this seminar where 80% of the speakers are young lawyers.

The judges of Supreme Court & High Courts really encourage young lawyers by giving them opportunity to argue and guide them during their arguments. The sharp advocacy skills of young lawyers are duly appreciated by the bench and the senior members of the bar.”

While American graduates clutching their freshly minted Juris Doctor degrees and triple digit debt desperately forage for work of any kind, Indian attorneys are being hired by American firms for $550 dollars per month.  There is very little mystery why the rates for attorney work in the United States are dropping dramatically and jobs are disappearing.  This trend continues, despite the fact that LPO work in India is considered dead end and third tier much like document review in the United States.

With the Legal Process Outsourcers (LPOs) on the make with the corporate counsel of the Fortune 500, it is likely that American (and British) jobs will continue to be taken offshore at an accelerated pace.  We are witnessing the “globalization” or destruction of the legal marketplace, depending upon your viewpoint.