Like any other calamity, recessions are inevitable in businesses. However, the period prepares the ground for business transition into a strategic and smart administration. Plato’s famous quote “Necessity is the mother of the invention” holds good here, as the business owners start focusing on the technical and monetary aspects to retain the business during a recession. So, in a changing economy, selective outsourcing can develop more adaptive spending and focus on business resources. In addition, outsourcing benefits legal firms to scale their business and prepares for any financial crises and recessions.
What is a Recession?
A recession is a significant decline in economic activity which lasts for months or even years. It happens when a nation’s economy experiences negative gross domestic product (GDP), increasing levels of unemployment, falling retail sales, and industrial production for an extended period of time.
How LPO can benefit your legal firm during a recession
Legal process outsourcing (LPO) is an effective and efficient way to reduce costs. Research shows that about 12% of the US legal fees would be saved in paying for the related legal services since the LPO service providers feel compensated enough even without other perks and incentives involved.
The major tasks undertaken in the LPO space constitute contract management, legal research, real estate, litigation support, intellectual property, and corporate governance. Outsourcing back office legal functions is greatly supported and highly considered by US small and midsized law firms. The cost-effectiveness of this LPO business has seen exponential growth in recent years and has effectively combated the economic effects of the US recession.
1. Cut Costs on Operations
Reducing costs should be the number one goal of every business during an economic downturn. And while working with an outsourcing company – you can cut costs for tasks that do not need a full-time team.
Furthermore, since you are outsourcing your low-maintenance needs, you will have the option to retain the employees who are more important to your organization. When compared to having an in-house team, outsourcing ends up being a cost-effective option since you will be paying a fixed amount to the company providing outsourcing services and not to every one of your employees.
2. Less Stress For Employees
During a downturn, because of layoffs, increased work pressure is normal for remaining employees. Outsourcing is a great way to maintain a strategic distance from that extra pressure and the resulting effect on morale because of over-burden.
3. Improved Employee Efficiency
When work duties get shifted among a team of employees that has shrunk because of a downturn, higher-level employees may end up wasting time on low-value tasks. Outsourcing assists in solving this problem before it becomes an issue for small to medium-sized organizations.
4. Better Scaling Opportunities
During a downturn, in case you’re planning to expand your team or intensely invest in other operating costs, the scaling can be scarier as onboarding is one of the most costly HR costs most organizations have. Scaling through outsourcing gives you chances to explore your choices without doing investments in the long run. It gives you better responsiveness, letting you hit the ground running as opposed to investing time in training new people on your organization’s methods and missions.
5. Cut Costs on Additional Benefits
Outsourcing the work will help you reduce the additional cost to the employees such as bonuses or additional benefits apart from the basic pay or salary.
Clients based in the USA, in order to reduce expenses sought their services being outsourced to LPO. In turn, the solicitor firms started outsourcing their work to LPO providers in countries like India. Outsourcing can play a major role as it can support your business in several ways during a recession. The evil of recession has compelled solicitor firms to cut down their cost so as to provide the same services at more competitive prices.
Significantly, the focus of outsourcing is now tilting toward legal services in place of secretarial and paralegal services. Legal Process Outsourcing has attained another dimension with the increase in outsourcing of legal work.
The reasons for the beginning of outsourcing may be different but the reason for outsourcing legal services like contract drafting, document review, and deposition summary are the outshoot of the recession. Recession has proved to be a reason for outsourcing bigger services from the office of solicitors. There is so much LPO can benefit you starting from the cost saving to delivery of the work by providing expertise.
The global recession proves that outsourcing could be a great solution to remain resilient and thrive during periods of economic stress. The key is finding an outsourcing partner who could provide you with the best solution and help you achieve your business goals.
How Outsourcing Business Solutions can help you survive the recession?
If you’re a growth-minded entrepreneur thinking about what you need to do to make your business successful, we can help. Outsourcing business solutions is one of the leading legal outsourcing service providers with a team of experienced attorneys and paralegals to provide complete support and one-stop solutions to law firms and private individuals seeking legal assistance.
In the midst of the 2020 recession, we have helped many companies with legal services. Build your dream firm by hiring an outsourcing company for all your needs during this difficult time. At OBS, we help small and medium-sized companies or law firms in the US and other countries to provide and support their legal process through our legal staffing solutions. We help companies get the work done at better and lower rates. We help and support the client’s legal requirements as per their request and requirement.
With experience and an in-depth understanding of the market and our client’s needs, we deliver tangible results that are sure to bring guaranteed success for our clients and their business.