|Image (cc) Ashish T|
I have previously commented on how LPOs are coming after law firm market share. This report confirms that and even includes a section called, “LPO Providers Will Move Up the Value Chain.”
To demonstrate the impact of LPOs on the legal market, I thought I would share a few statistics from the report. Emphasis added is mine.
- The global LPO market was estimated to be worth $2.4 billion in 2012.
- The estimate of 28% annual growth rate may be more realistic [versus some reports of 60%].
- India-based providers are the leaders in the offshore LPO space, with more than one million lawyers and 128 LPO providers exporting legal services worth $640 million in 2010.
- The US market [for legal services] is highly fragmented, with 50 of the largest firms generating only 15% of the revenue.
- Prices [for legal services in the US] have increased by 75% (compared to 20% for non-legal business services) in the past decade.
- Microsoft reports that Integreon (an LPO) increased contract turnaround by 20% and increased on-time delivery of contracts to 99.5%.
- As a group, the 27 LPO providers [in the survey] employ a total of 10,858 LPO workers.
- The overall turnover rate [for LPOs] is 15% (Turnover being the percentage of employees who leave each year.).
- The average team composition is 22% onshore and 78% offshore.
Is the wake-up bell ringing loud enough yet?