2009 IN REVIEW Key trends: Speaking out about outsourcing

Outsourcing is slowly becoming par for the course for UK law firms, but in 2009, the path in Australia was trod more cautiously - and quietly.

Promoted by Lawyers Weekly 14 December 2009 Big Law
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Outsourcing is slowly becoming par for the course for UK law firms, but in 2009, the path in Australia was trod more cautiously - and quietly.

In November, Allen & Overy became the first Magic Circle firm to outsource legal work, partnering with Integreon to outsource basic litigation and document review work to teams in Mumbai and New York. It was following in the footsteps of firms such as Simmons & Simmons, which announced in April it was outsourcing legal work to India and South Africa.

Other top UK firms, including Pinsent Masons, Eversheds, Lovells, Clifford Chance and Linklaters are also outsourcing support services.

Things have proceeded more slowly in Australia, said Nicola Stott, a director of international outsourcing company Exigent, which now has a data centre based in Perth. When the company first attempted to get its foot in the door in Australia seven years ago, Stott explained, it hit a wall - finding that Australians were hesitant about the prospect of outsourcing at the expense of local jobs.

"Australians were much more sensitive about offshoring than the Brits," she said.

However, with the benefits making themselves apparent, more firms are beginning to test the waters, and Exigent's client base now includes firms such as Swaab Attorneys, Herbert Geer and Lavan Legal.

Other significant trends in the legal profession this year have included (click on link for a full examination of each trend):

>> Mid-tiers make their mark

>> Climate change on the horizon

>> The rise and rise of in-house

>> Speaking out about outsourcing

>> Too many city lawyers highlights rural shortage

>> Alternatives for billings methods gain momentum

>> The trend to business-minded lawyers

>> Mental health issues come to the fore

>> Workplace relations tug of war

>> Big firms place freeze on salaries

Herbert Geer managing partner Bill Fazio said it was the 24-hour capability of external providers that was the main driver behind the firm's decision to outsource.

While he admits there were some "glitches", he said he was optimistic the service would prove its worth.

"In very general terms it's early days. We're excited by the potential to have this kind of on-call available support, and also the fact that it's 24-7 does make sense for a business of our size that can't justify having those resources 24-7 ourselves, so we're hopeful that this will be a great idea."

Although the hesitancy of Australian firms to outsource still hasn't vanished entirely, Stott said she already has one "big six" client (who wishes to remain anonymous) and that outsourcing is a trend to watch.

Other significant trends in the legal profession this year have included (click on link for a full examination of each trend):

>> Mid-tiers make their mark

>> Climate change on the horizon

>> The rise and rise of in-house

>> Speaking out about outsourcing

>> Too many city lawyers highlights rural shortage

>> Alternatives for billings methods gain momentum

>> The trend to business-minded lawyers

>> Mental health issues come to the fore

>> Workplace relations tug of war

>> Big firms place freeze on salaries

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