The research of the 2012 legal outsourcing market – produced by New York-based strategic advisory service The LPO Program -- also reveals that general counsel are frequently bypassing law firms, opting to work directly with outsourcers.

Doubling market

The study suggests the trend is likely to continue, posing serious potential business issues for law firms as they are increasingly carved out of historic services. ‘These bullish growth forecasts could turn out to be very conservative,’ commented report editor and research group founder Edward Brooks. ‘The market still has a long way to grow as currently it constitutes only 0.25 per cent of the total global legal spend. We estimate that even law firms who currently use LPO only use it to about 5 per cent of its potential. In itself, growing use by existing users could double the market size within two years’.
Mr Brooks added: ‘The impact on law firms could become financially significant, but there is still the opportunity to stem the flow of work away from law firms. Adapting a firm’s business structure is very difficult but it is the only way to address the changing marketplace.’