Corporations Now Outsourcing M&A Work to India

In a threat to big law firms, lawyers in India are carrying out the due diligence work for an upcoming corporate acquisition financed by the major UK bank.  We all knew this day was coming and the book The World is Flat predicted it: legal services are being sent offshore just like telephone call services and being performed by cheap foreign labor.

According to the April 12 Financial Times (see the LawMarketing Portal for the full story), this essential M&A work is being handled by New Galexy, a Mumbai, India, company with lawyers in India who are qualified to UK law practice standards and who are paid only $12,200 to $21,000 per year.

Typically this due diligence work is handled by junior lawyers at giant mega law firms who have a starting pay of $125,000.  I think their jobs are in big danger now.  Robert Glennie, New Galexy’s founder, says the Indian company offers the same quality of legal support work for half the cost charged by top firms in London’s legal establishment.

Offshore companies like New Galexy are also taking over other from law firms:

• E-discovery services, where lawyers scrutinize voluminous quantities of e-mail to find evidence or embarrassing disclosures for use in litigation.
• Sarbanes –Oxley compliance work.

Corporations find it too expensive to assign the work to traditional law firms, the FT said.  "US and UK corporations therefore regard the India option with relief.”  Financial Times also quotes Liam Brown, CEO of Integreon, an offshore legal service provider with a staff of 900 in India.  Brown says that mega firms are under pressure to cut costs and face the reversal of the trend to farm out litigation support to costly private law firms.

Here’s the silver lining in all this bad news: the smart US law firms will link up with the Indian-based legal providers and pass along the savings to their corporate customers.  The will be able to use to market and differentiate themselves.  They also won’t have to hire so many $125,000 associates.

Comments

[Baldev Singh Chhabra]

Rather big scope lies for British/American/or any British Commnon Law background country’s Law Firm to exploit the scope of legal profession at New Delhi, the capital of India. Most of the Corporates are intending to hire the services of law firms of the above quoted countries for their legal needs. I’m too practicing law at the Supreme Court of India level. And I have personally seen this latent demand very much there. Corporate Giants pay huge legal fees but are not satisfied with the legal service they get. They feel of getting services of foreign law firms. In the last strike of lawyers here at Delhi last year there was a fear prevailing as to coming in of the foreign law firms and it was put in the agenda to struggle not to let them come here. Opening for future scope, for reservation in advance, of a law firm at New Delhi can be done with only 35,000 Euros with monthly maintenance of 1500 Euros and with this meager investment the future which lies here is big because today or tomorrow foreign lawyers will come here. I’m practicing lawyer at New Delhi at Supreme Court of India having 30 yrs leglal work experience with background of Degree of LL.B(Hons.) togetherwith post graduate degree of M.B.A. from famous Christian College and Deptt. of Business Management of Devi Ahilya Univesity of India and, Position Holder 1st Divisioner. If somebody collaborates with me on the scope given in the foregoing lines I can assure that future will not only be bright for them but in their hands as in the initial stage I can manage their work here at New Delhi and generate and tap good scope of legal practice offered by a foreign law firm in their name through my name as I can get for them legal practice offers including retentionships from big giant Corporates here.

[Baldev Singh Chhabra]

Look to India with hopes of future. Less time is left now when British or American lawyers will have their law firm branch in India too due to day by day increasing demand by big corporates here in India to use legal services of British or American or of any British Common Law background country'law firm. This is specially becoming so due to fast increasing globalisation taking place. I am a practicing lawyer at Supreme Court of India. I propose you to open your branch in India at New Delhi, the capital of India, with so much low a cost of only 30,000 Euro with its monthly maintenance of 1500 Euro only. And by this you will get collaboration with ME THE INDIAN LAWYER who will generate scope for your law firm from Indian Corporate giants with bright future within short time. I'm having 30 years legal work experience with degree of LL.B.(Hons.)from renowned CHRISTIAN COLLEGE and post graduate degree of M.B.A. from renowned Deptt. of Business Management of Devi Ahilya University of India and, am practicing lawyer of Supreme Court of India at New Delhi. Anybody interested in my collaboration offer can contact me on my email or contact at 91+9873337769. Sufficient scope lies for future in India for the foreign lawyers.

[maddual venkata narshima murty]

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[Mark Ross]

Larry

I thought that you may find my legal outsourcing blog interesting: http://blog.law-scribe.com/

I am a UK attorney and former partner at Underwoods and now director at LawScribe a relatively large LPO (currently 80 employees).

I firmly believe that given the hourly charge out rates of UK and UK lawyers that clients will increasingly demand that their lawyers look to the offshore solution.

The majority of legal work undertaken in corporate due diligence, litigation, class action, estate planning, private client - does not merit charges of $400 + per hour. This work can be done efficiently and cheaper in India or South Africa.

Please have a look at my article on "time to stop time recording" on my blog.

Best wishes

Mark Ross

[Shruti Dixit]

I am a practising lawyer in the Rajasthan High Court and the Supreme Court of India. I head a group of associates who are highly qualified in the field of legislative drafting, policy-making, documentation, contracts, arbitration, court-room backup work including research and drafting. We also have highly influential and experienced associates who work on all government and public authority related work for corporates. Inter-corporatenegotiation is our speciality. We also have the infrastructure for advising corporates on all their legal requirements in every country with English Common Law heritage. We challenge anyone in the world to match our quality.

[Chidanand Kapil]

We can process the legal documentation in India at very competetive rates.

[rameshwar Singh Jamwal]

I am a practising advocate of Jammu Kashmir High Court in India with about eighteen years experience in dealing with civil criminal and other legal matters.I am also associated with various social organisations and also heading a N.G.O and attended several national and international level seminars.I want to work with some law firms who want to outsource their work. IS THIS POSSIBLE.If yes please send all details.

[Razib Ahmed]

Outsourcing is becoming a nightmare for many people in the west. We may see a reverse trend in which many Americans
will go to China and India for finding works.

800 Americans are now working in ICT companies in India and this figure will
only increase. I think that within a few years working in USA and India will have little diference to many Americans.