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The legal industry is going through a big transformation thanks to technology. Part of it is Legal Process Outsourcing (LPO), helping law firms and corporate legal departments streamline operations and cut costs.
The Business Research Company even revealed that the global LPO market is valued at $17.83 billion in 2024 and is expected to reach $45.54 billion by 2028. This massive growth emphasizes the impact of technology in reshaping legal services.
But it’s not just about saving money — technology in Legal BPO Services is boosting efficiency, accuracy, and scalability. Automated document review, e-discovery, and AI-driven contract analysis are some of the innovations making waves in this line of business.
Let’s further explore the crucial role technology plays in legal outsourcing and how it’s driving the sector’s evolution
Technology has strengthened the legal industry, making it more efficient and accessible. From case management systems to e-discovery tools, current advancements have simplified many traditional legal processes. Automation, artificial intelligence (AI), and machine learning (ML) are no longer just buzzwords — they are becoming more integral to modern legal practices.
For instance, AI-powered legal research tools can analyze vast amounts of data in seconds. This provides lawyers with relevant case law and precedents that would significantly reduce the time spent on research. This would allow your firm to focus on more strategic tasks.
Technological advancements in the legal field lead to improved accuracy, speed, and efficiency. In the case of legal BPOs, they can handle repetitive tasks such as document review, contract management, and compliance monitoring. As a result, human errors are cut down which will give you more time to spend on other things that drive your business.
Moreover, technology facilitates better communication and collaboration. Cloud-based platforms allow seamless sharing of documents and real-time updates. This is particularly beneficial for law firms that need to coordinate with external partners or clients.
There are several key technologies that drive the efficiency and effectiveness of legal BPO services:
AI and ML can automate repetitive tasks, analyze large data sets, and predict outcomes. In legal BPO, AI-powered tools can review documents, identify relevant information, and flag potential issues. This not only speeds things up but makes everything more accurate.
Example:
An AI tool like ROSS Intelligence quickly analyzes case law and provides relevant legal precedents. Tools like this can save you hours of manual research and lessen the chances of human error.
RPA uses software robots to perform routine tasks such as data entry and document processing. These bots can work 24/7 without breaks, offering consistency and productivity. Your law firm can leverage RPA to handle tasks like invoice processing, client onboarding, and compliance checks.
Example:
Software like UiPath can automate the extraction and entry of data from multiple sources. If you use this or similar services, you have the opportunity to speed up processes and reduce labor costs.
Legal outsourcing providers use cloud-based platforms to store and manage documents securely. This enables easy access to information from anywhere that would improve your collaboration and efficiency.
Example:
Microsoft Azure and Amazon Web Services (AWS) offer secure cloud storage and collaboration tools. So regardless of your physical location, you and your teams can work together seamlessly.
Blockchain can power smart contracts that automatically execute terms when conditions are met. This reduces the need for intermediaries, boosts security, and ensures transaction transparency. Law firms that leverage this technology would be able to foster more trust and build better relationships with their clients.
Example:
Platforms like Ethereum can create smart contracts, ensuring that all parties adhere to the agreed terms. When you use software like this, it helps prevent disputes and quickens contract execution.
Those in the legal field could use NLP for document analysis, contract review, and e-discovery as it allows computers to understand and interpret human language. It’s capable of quickly sifting through large volumes of text to find relevant information that can save you and your team a lot of time and effort.
Example:
Tools like Kira Systems can analyze contracts and identify key clauses. It can also significantly accelerate the review process and check consistency in document analysis.
As you could surmise with the tech we’ve listed, integrating them with legal outsourcing would further bring a ton of benefits like:
Technology minimizes human error and encourages efficiency. For example, AI-powered document review tools can quickly identify discrepancies in contracts. Using tools like that along with external help can decrease the risk of costly mistakes and speed up the review process.
Automation and AI can handle tasks faster than humans. Legal BPO providers using these technologies can offer quicker turnaround times, which is crucial for law firms with tight deadlines. For instance, e-discovery tools can process thousands of documents in a fraction of the time it would take a human team.
Technology reduces the need for extensive human labor, leading to significant cost savings. A legal BPO provider that knows how to utilize the latest tech like STAFFVIRTUAL can let you save up to 70% on labor costs. These savings can be passed on to clients or reinvested in other areas of the firm.
Technologies like blockchain and cloud computing offer robust security features. Blockchain ensures tamper-proof transactions, while cloud platforms provide encrypted storage and secure access controls.
Outsourcing to a legal BPO provider that uses advanced technologies can boost your data security. They usually have dedicated IT security teams and the latest tools to protect your sensitive information. And as a bonus, they alleviate the burden on your in-house staff.
With technology and an external partner handling routine tasks, you and your team can focus on providing better client service. Your company can spend more time on strategic activities, such as case strategy and client consultations.
More and more legal professionals are seeing the advantages of incorporating advanced tech into how they operate. Here are a few examples of businesses embracing technology and benefiting from it:
L’Oréal ANZ’s legal team wanted to help the business grow but struggled with their heavy workload. With 45 brands to handle, they were overwhelmed by day-to-day tasks.
To free up their time, they started using Plexus, a legal automation tool. Plexus offers contract lifecycle management, automated workflows, and self-service apps, among other features.
Thanks to Plexus, the business team can now handle routine legal tasks on their own and consult a lawyer for more complex issues. This shift allows the legal team to focus on higher-value tasks instead of mundane ones. For example, generating agreements like influencer contracts used to take four hours, but now, it only takes 18 minutes with Plexus.
UK law firm Tees Law needed a better way to streamline their document production. They struggled with documents like attendance notes getting lost in the shuffle which led to them struggling to recall meetings from days earlier.
To solve this, they started using BigHand’s speech recognition tool. This allowed their lawyers to quickly record their thoughts and convert speech to text on the spot.
The new tool reduced dictation time by 33% compared to their old transcription software. It also helped the document production team manage workflows better and focus more on complex legal documents. Because of this, their turnaround time was reduced by as much as half.
Now that you’ve seen how businesses use technology to their advantage, imagine what you could do with a legal BPO provider. You won’t have to worry about where to start — experienced outsourcing companies will handle all the planning and execution for you.
So when incorporating technology through legal process outsourcing, consider the following best practices:
Now you have a better idea of how technology plays a crucial role in legal BPO, making it an invaluable resource for law firms. With it, you can make your company run smoother, cut down on costs, and offer top-notch service to your clients. And, whether you’re just starting out or aiming to boost your current setup, weaving technology into your legal outsourcing strategy can really set you apart.
At STAFFVIRTUAL, we leverage the latest tech to provide top-notch services. Our team uses an array of advanced tools to handle your extra work efficiently and securely. By partnering with us, you can focus on your core legal activities while we take care of the rest.
Contact us today to learn more about how we can support your firm with our tech-enhanced legal BPO services!
Sources:
Legal Process Outsourcing – combining technology with talent | LinkedIn
Legal technology’s authoritative guide: List of use cases and benefits | Thomson Reuters
Legal Process Outsourcing Global Market Report 2024 | The Business Research Company
What is eDiscovery? | The Association for Intelligent Information Management
L’Oréal: Empowering Legal to deliver more for less | Plexus
Tees Law cuts dictation time by 33% with BigHand Speech Recognition | BigHand