On December 5, 2013, the U.S. Federal Reserve issued new guidance to state banks and bank holding companies about the risks of outsourcing to service providers for reviewing loans, information technology and other bank operations. The Federal Reserve advised banks to be wary of new exposures, such as cyber attacks, and reminded bank managers and directors that they are responsible for the activities of any contractors they hire. Banks were urged to review their risk management policies to ensure they have strong risk management strategies in place. In its guidance, the Federal Reserve stated, “if not managed effectively, the use of service providers may expose financial institutions to risks that can result in regulatory action, financial loss, litigation, and loss of reputation.”
Risky Business? Banks Urged to Increase Security Processes When Outsourcing
Can Law Firms Achieve a Perfect Blend of In-Sourcing and Outsourcing?
In today's competitive legal marketplace, law firms can't afford to ignore client demands for integrated service delivery, better pricing, regulatory compliance, and quality service. General Counsels (GCs) are slowly changing the way outside legal services are delivered and the mantra is “more for less.” And today, GCs have a wider range of legal service delivery options for clients to choose from including contract, outsourced, co-sourced, multi-sourced, and captive, to name a few. Law firms are no longer the only choice, and depending on the legal need, the optimal solution may be a combination of in-house, law firm and third-party.
The global legal industry is moving into its next phase of maturity, and the legal process outsourcing (LPO) sector is on a parallel course. LPO is evolving into a legal service solution focused on integrated service delivery rather than a system that handles discreet, low cost, lower risk tasks. Today, LPO providers are combining all the key components of specialization, experience, collaborative leadership, analytics, talent, project management and technology – and it is working!
After Super Typhoon Haiyan: Philippine Outsourcing Industry 2014 Predictions
Super Typhoon Haiyan recently roared through the Philippines with devastating consequences for many residents. The economic impact will take months to assess, but early estimates show that Typhoon Haiyan sheared roughly $14 billion from the Filipino economy, according to data from risk-assessment firm Kinetic Analysis. This estimate would have been even higher, but the storm missed the capital of Manila, which is responsible for a third of the country's $250 billion annual economic output.
Despite the damage and hardship, it is believed that the Philippines will continue its rise as an outsourcing mecca. Next year could be a banner year for the Filipino outsourcing market as the industry continues to grow in both size and complexity of services offered.
Commercial lawsuits are occurring in record numbers at the same time legal departments are trying to control the cost of litigation. Here are three tips to help keep a lid on costs without sacrificing the quality of representation, particularly in high-stakes matters.
The legal profession in the UK is experiencing a seismic shift in the way it conducts business today. Corporate legal departments are looking for more cost-effective, efficient and transparent legal service solutions. Law firms are rethinking their business models, offering alternative and fixed fees, and are forming strategic partnerships with legal process outsourcing (LPO) providers in order to meet client needs. In the midst of all this, sweeping legislative changes in the UK are also driving change.With law firms and in-house legal departments adopting a variety of strategies to carry out low-value legal work more cost-effectively, significant new LPO players are entering the market.
China Emerges As Destination for Pharmaceutical Outsourcing
Analysts predict that China is just a few years away from becoming a preferred outsourcing destination in the pharmaceutical industry. Some even go so far as to say that China will boast the world's largest pharmaceutical outsourcing market by 2020. Almost all of the major pharmaceutical companies have, to some extent, outsourced activities to China in recent years. There are a number of factors contributing to China’s rise in the outsourcing world including:
Legal Process Outsourcing (LPO) Seen As a “Permanent Trend” in the Legal Industry
Legal consulting firm Altman Weil released its fifth annual Law Firms in Transition Survey, which revealed that since the survey’s inception in 2009, there has been wider acceptance of legal outsourcing as a business driver. In the survey, nearly 50% of law firm leaders believe that outsourcing legal work is now a “permanent trend", which is up significantly from just over 10% in 2009. The adoption of LPO is even greater among large firms. For example, almost 20% of firms with 250 or more lawyers are “currently pursuing” legal outsourcing (up from about 6% in 2010). And, the use of contract lawyers is even higher – 87% of large firms are “currently pursuing” the use of contract lawyers, which is up from 57% in 2010.
On Your Mark: Getting Ready to Outsource Your Trademark Management
Trademark Life Cycle and Outsourcing: Protecting Your Brands Globally
Choosing the right brand for a new product is critically important in an increasingly global marketplace. A trademarked product name can lead to increased consumer recognition and increased profits, but managing a trademark portfolio can create an administrative burden on legal teams. It is important to manage your trademark portfolio to ensure that all company trademarks are kept up to date and are extended according to deadlines in order to receive maximum global protection. Management and valuation of your trademarks as well as your domain names require the work of an IP expert and specialized technology. Some companies and law firms develop their own systems to manage their IP portfolios, but to make this work successfully, significant time and resources are required, including the costs associated with maintaining and updating the systems.
Looking Beyond India for Successful Legal Process Outsourcing
The most popular Legal Process Outsourcing (LPO) destinations include China, Israel, Philippines, Sri Lanka and, of course, India. For a decade, India has reigned as the world's premier outsourcing destination because of its favorable time zone, the better quality of experts from the country, foreign educated professionals, language and the similarity to English common law systems. Despite India’s supreme reign, LPO is moving beyond India’s borders into new countries and with new strategies.
- "I found the participation on the panel a very useful experience in getting my thoughts organized for an external audience and also meeting people with similar challenges."
- Jacqueline J. Ertl, Group Vice President and General Counsel - Building Efficiency, Johnson Controls, USA
- "I had a great time and thought that it was a very well put together conference."
- Matthew F. Knouff, Esq., General Counsel & eDiscovery Counsel, Complete Discovery Source, USA
- “I greatly enjoyed participating at the NYC Conference. I also greatly appreciate all the organizations and their efforts into making this event go so smoothly!”
- Tanya Vasilev, Sr. Manager, Legal, Cisco, USA