Legal Process Outsourcing (LPO) Market Analysis

Legal Process Outsourcing Market Analysis

The e-discovery market in the U.S. is projected to expand at more than 25% CAGR through 2027 driven by the high demand for affordable and streamlined e-discovery services that accelerate the review and analysis of Electronically Stored Information (ESI). The increasing amounts of digital data in the U.S. across all the industry verticals have resulted in the high demand for e-discovery services that collect, locate, identify & produce data accurately.

E-discovery is crucial to produce ESI in response to a request for presentation in an investigation or a lawsuit. Technologies and procedures around e-discovery are complicated due to the large volume of electronic data produced and stored currently. The growing penetration of digitalization in the U.S. legal sector will encourage professionals to search for advanced ways to process, store, replicate & produce tampered digital records for evidence in court proceedings.

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The India legal process outsourcing market size is set to achieve growth of around 27% through 2027. Rising number of highly qualified lawyers specializing in different legal sectors and possessing fluent English-speaking skills is boosting the regional market revenue. Law firms offering legal process outsourcing services at affordable prices in the country encourage organizations to outsource their legal process requirements onshore rather than internationally. This also offers the advantage of the availability of proficient lawyers well-versed with the regulations operational in the region.

Several students in the country are currently undertaking courses to excel in international corporate law, further supporting the onshore LPO market growth. Service providers hire students from renowned universities to cater to the requirements of large foreign multinational organizations establishing offices in India. The availability of skilled personnel coupled with the expanding corporate sector will support the demand for LPO services.

In 2020, the Asia Pacific legal process outsourcing market accounted for above 55% of the global revenue share and will witness steady growth till 2027 on account of the rising number of law firms and businesses in Europe and North America outsourcing their legal service requirements to offshore companies. Law firms in countries including India, Australia, and the Philippines are focusing on hiring highly skilled personnel to offer high-quality services to international organizations.

Instead of attaining services from paralegals or legal associates in onshore locations, businesses in the U.S. benefit from the LPO services offered by highly qualified law professionals in India and the Philippines at around 50% cost. The onshore market in Asia Pacific will also gain traction with the development of the corporate sector and the strengthening of the regulatory landscape in several APAC countries.