U.S financial crisis brings more business for Indian LPOs

New Delhi: Indian legal process outsourcing (LPO) sector is currently experiencing a positive effect of U.S. financial crisis as bankruptcy filing incidents as that of the major investment firm Lehman Brothers make many corporate houses and investment banks to shift their credit crisis-related work to lawyers in India as it is a more viable and cost-effective option, reported The economic Times.

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With more international firms turn to India for LPO, the sector is expected to witness a surge in business. Major LPOs such as Pangea3, Quislex and Mindcrest have seen a significant increase in the number of outsourced projects in the last few months.

Antony Alex, Pangea3 VP Legal Services, said, "The demand for LPOs is on the rise as legal work related to bankruptcies in the global market has increased." Experts also opine that turmoil in the financial sector is driving more legal outsourcing to India.

"Since appointing a lawyer is expensive overseas, especially in the U.S. and UK, it is natural for corporate to shift higher value work to India at this time of crisis," said a source.

Presently, there are over 200 LPOs in India and the number is expected to rise in next few years. The Industry has grown at over 60 percent year-on-year . The market stood at Rs 630 crore in 2007.

According to a study by research firm Value Notes, revenue form offshoring legal services in India will reach over 2,770 crore with job opportunities of 24,000 by the end of 2010.