Legal Process Outsourcing Market Outlook 2031:
The global legal process outsourcing market size was valued at USD 13.67 Billion in 2022 and is projected to reach USD 159.63 Billion by 2031, expanding at a CAGR of 31.4% during the forecast period 2023 - 2031. The growth of the market is attributed to the rising demand for legal support service by various enterprises to ensure effective functioning of their overall business operations.
Legal process outsourcing is the procedure of acquiring the practice of legal support services and counseling from outside legal firms. It offers enhanced efficiency and improved quality of legal processing that helps to ensure well development of any business network.
The electronic documents are processed with the help of software tools and e-discovery, which handle a large volume of data that can reduce the time and cost involved in processing of legal service. The e-discovery platform is significantly used in the legal process outsourcing to achieve legal support.
Outsourcing legal processes to emerging economies such as India offer various benefits for the expansion of the market. For instance, there are abundant lawyers in India who are fluent in English, high competent, and well-experienced, who also can be hired at lower remuneration than those in U.S. outsourcing companies. Factors such as high-level of competency and adequate experience of lawyers can help in enhancing output and improving client relationship.
Legal Process Outsourcing Market Drivers, Restraints, Trends, and Opportunities
- Growing demand for several legal service solutions and rising preference for effective legal counselling support across enterprises are anticipated to drive the market growth.
- Rapid urbanization, migration, and growing population in emerging economies such as India provide several opportunities for the legal process outsourcing market expansion.
- Increasing prices of real estate in developed countries leads to less affordability of commercial spaces for organizational use. Thus, organizations are limiting their employee strength in developed countries and non-core tasks are outsourced in developing countries. These are the factors anticipated to spur the market growth.
- Different regulatory policies in different countries are discouraging organizations from opting to legal process outsourcing. This factor acts a key restraining factor that can hinder the growth of the legal process outsourcing market.
- The emergence of novel coronavirus COVID-19 outbreak has adversely affected the legal process outsourcing market. Restrictions imposed by government bodies to control the virus spread has resulted to halt the processing of legal service and support across the globe.
Scope of Legal Process Outsourcing Market Report
The report on the legal process outsourcing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Legal Process Outsourcing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Locations (Offshore and On-shore) and Services (E-discovery, Patent Support, Contract Drafting, Review & Management, Compliance Assistance, Litigation Support, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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UnitedLex Corporation, Integreon, Inc., Elevate Services Inc., Pangea3 LLC, QuisLex Inc., Mindcrest Inc., Clutch Group, and Axiom Law
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Global Legal Process Outsourcing Market Segment Insights
Offshore segment expected to account for a significant market share
On the basis of locations, the market is bifurcated into offshore and on-shore.
The offshore segment is expected to account for a significant market share during the forecast period. The offshore companies are adapting themselves to the corporate culture and are competing with other law firms in selected service offerings such as legal research and patent filling.
On the other hand, the on-shore segment is expected to register a healthy CAGR during the forecast period. Companies preferring for collaboration with the legal organizations of the same country are focusing towards on-shore outsourcing since outsourcing to companies of the same country provides several advantages such as similar regulatory framework.
E-discovery segment anticipated to represent a considerable market share
Based on services, the market is divided into e-discovery, patent support, contract drafting, review & management, compliance assistance, litigation support, and others.
The e-discovery segment is anticipated to represent a considerable market share during the forecast period owing to wide adoption of electronic handling of various legal service. Electronic documents contain large number of data and metadata.
The identification and production of such information can be outsourced and it proves economical and profitable for law firms. E-discovery is widely considered to be a necessary means for organizations that help in trying to comply with legal, investigational, and regulatory requirements.
On the other hand, the compliance assistance segment is projected to exhibit a healthy growth rate in the coming years owing to rising demand for the services. Increasing demand for compliance assistant is encouraging providers to re-design their work processes by introducing processes that are not currently available in-house, thus, adding value to their services.
Meanwhile, the patent support segment is expected to expand at a substantial CAGR during the forecast period. It offers illustration, infringement analysis, patent mining, and patentability assessment, which come under the category, the Intellectual Property Asset Management (IPAM). Activities such as proofreading, intellectual support, and IP litigation are key benefits that large organizations are focusing to put on high value tasks.
Asia Pacific expected to constitute a large market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
Asia Pacific is expected to constitute a market share of more than 65%, in terms of revenue, during the forecast period. Countries such as Philippines, China, and India are preferred destinations for law outsourcing owing to the availability of cost-efficient and proficient lawyers in this region.
Rising establishment in the number of legal process outsourcing players in countries such as India, South Africa, the Philippines, Malaysia, the Caribbean Islands, and Singapore are key aspects for driving the regional market growth.
However, countries other than India are finding it difficult to overcome the scalability constraint, thus, lowering the growth rate of legal process outsourcing in this region.
On the other hand, the market in Middle East & Africa is projected to register a substantial growth rate in the coming years owing to emerging the region as a strong legal process outsourcing destination for the clients of Europe.
In the region, South Africa is anticipated to exhibit an impressive CAGR during the forecast period. The growth of this region is attributed to the similar time zone, cultural similarity and a maturing vender landscape.
Segments
The global legal process outsourcing market has been segmented on the basis of
Locations
Services
- E-discovery
- Patent Support
- Contract Drafting
- Review & Management
- Compliance Assistance
- Litigation Support
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key players
Competitive Landscape
Some of the key players in the global legal process outsourcing market are UnitedLex Corporation, Integreon, Inc., Elevate Services Inc., Pangea3 LLC, QuisLex Inc., Mindcrest Inc., Clutch Group, and Axiom Law.
Companies are investing heavily on improving their service offerings such as compliance management. Additionally, they are also focusing on expanding their services to contract management and other corporate services.
Moreover, they are actively engaged to adopt new tools and various business strategies such as target marketing to strengthen their position in the market. They are keen on expanding their service portfolio to offer unique services at affordable costs.
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