Wealth & Risk Management Blog

William Byrnes (Texas A&M) tax & compliance articles

Legal Process/Service Outsourcing Focus on India

Posted by William Byrnes on July 20, 2009


This week I will break from wealth management and turn to a series of blogticles on legal process / service outsourcing to India.  The blogticles will present an overview of issues relating to the discussion held in our Masters course (see www.llmprogram.org).  Whereas our course also addresses our groundbreaking technology and pedagogical developments for educating the Indian legal process outsourcing workforce, within this blog we will focus on basic outsourcing issues such as types of outsourcing, compliance, and two tax issues being (1) India source based taxation / permanent establishment considerations, and (2) transfer pricing considerations. 

I will provide citations to relevant sources that you may jump start your research for legal process outsourcing for India.  Please contact me if you require more detailed suggested resources to continue you research.

Economic Comparison: BPO and LPO Growth

Since 1994 I have observed, and participated in the rise of technnology, business, service, and finally legal process outsourcing.   Originally I leveraged South African accountants for service fullfillment for projects overseas, transferring information via the Internet.   Many South African accountants immigrated overseas, and India’s bandwidth grew stable and robust enough that its labor force could be effectively leveraged.  Fees in India generated from USA sourced legal services are estimated to increase to $640 million within the next two years, employing 32,000 legal staff (from $146 million employing 7,500 in 2006, and only $80 million in 2005).[1]  In the past three years, legal outsourcing revenue has grown approximately 60% annually.[2]  From just 2006 to 2007, growth of US companies outsourcing legal services to India increased from 37% to 51%.[3]  By 2015 Forrester Research projects $4 billion in legal services outsourced to India. 

By contrasting example, last year India’s IT outsourcing revenues reached $64 billion, growing 33%, and breached the two million employment level.[4]  As Indian has accomplished phenomenal growth since 1994 with its BPO information technology sector, so it is likely to in the BPO legal services sector though as a much faster pace.

My Background Relevant To Legal Process Outsourcing

In 1994-95, I was a senior consultant for a significant non-resident Indian acquisition of an India manufacturer, requiring leveraging of the Mauritius double tax agreement and working with Mauritius and Indian tax and exchange control authorities.  In 1996, I followed up that experience by outsourcing to India a substantial text capture project in agreement with Kluwer Law International for the creation of HTML hyperlinked online materials for our online law program.  Since 1995, I have spoken numerous times in India at conferences and trainings held by organizations such as the Bombay Management Association and for Bangalore’s charted accountants.  Last year the All India Federation of Tax Practitioner invited me to address its membership on legal education for Indian tax process outsourcing.  Recently I co-authored the Indian chapter for Oxford University Press’ treatise Global E-Business Law & Taxation (distributed electronically through www.ibls.com).

Prior to my tenured academic career I was a senior manager then associate director, international tax, Coopers and Lybrand (South Africa), which subsequently amalgamated into Price Waterhouse, whereby I sourced multinational structuring and investment projects, completing the work cost effectively for the clients via competently educated South African advisors. 

In the next blogticle, we turn to examine the issues of Litigation Cosst, Compliance Costs and Document Review & Customization Costs.

Prof. William H. Byrnes, IV (www.llmprogram.org)


[1] Offshoring Legal Services to India: an Update (Market Research Report), Valuenotes Database Pvt. Ltd., July 2007 and Legal Outsourcing to India is Growing, but Still Confronts Fundamental Challenges, Anthony Lin, New York Law Journal, January 2008. – see Mittal – NASSCOM

[2] U.S. Legal Work Booms in India, Rama Lakshmi, Washington Post Foreign Service, May 11, 2008.

[3] India Lures Corporate Outsourcing, Jonathan Hill, Law Technology News; October 14, 2008.

[4] Indian IT-BPO Industry Factsheet, NASSCOM, August 2008 (available at http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53615).

3 Responses to “Legal Process/Service Outsourcing Focus on India”

  1. Great blog!!
    Thanks for posting.

    Management consultant in Netherlands!!
    Financieel adviesbureaus -the best business consultant.

    Like

  2. Hi, I like your article since it’s very informative. I would love to read your next post.

    Like

  3. Nice one regarding outsourcing services….

    Now a days most of the companies adopted this kind of strategy for maximizes profits and minimizes losses.

    Another benefit is that outsourcing allows companies to avail high-quality services. So now a days outsourcing services are most important in every business organization.

    Thanks for sharing with us……

    Like

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