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THE OUTSOURCING GUIDE

Changes should be implemented gradually, rather than wholesale changes in one go . This will win over sceptical internal audiences who would not respond well to sudden large-scale disruption. In addition, focusing on areas where firms may already have high attrition, use temporary resources or have unacceptable documentation backlogs is potentially the best place to start an offshoring strategy, in order to increase service delivery with no reduction in UK headcount.

Choose the correct processes to outsource . It is crucial to choose the correct processes to outsource, as well as the correct location to send these processes to. The multishoring model means different types of process can be sent to different locations. An example of a process not to outsource is customer contact — this is something that is core to all law firms’ businesses. Secretarial work is a particularly good process to outsource as it allows in-house secretaries to focus on becoming paralegals — performing value-added tasks rather than the audio and copy typing that can be performed offshore. The offshoring of some basic secretarial services allows in-house secretaries to focus on higher-value, client-facing roles and provides them with an opportunity to fulfil their potential. This drives staff satisfaction and ensures quality staff are retained in-house, and attrition is lowered.

It is vital to look beyond the cost savings . Focusing purely on cost savings would be a mistake. Service quality and convenience must be high on all lawyers’ agendas. A common sentiment among lawyers seems to be, 'I do not care what it takes, just do it now and get it right first time’. This may be applicable to a lawyer’s demands of their back office and equally of a client’s demands from a lawyer. Outsourcing provides a means whereby a firm’s support staff raise their game. By outsourcing the mundane day-to-day work to an environment where service delivery can be instilled via a contractual relationship (including weekend working or 24/7 working), in-house support staff will do more interesting and higher value tasks and therefore staff retention will increase.

Planning and implementation must be done correctly from the outset , in order to maintain UK headcount and increase margins. Focusing on the back-office, mundane client business support functions, and the commoditised, non-client-facing repetitive legal processes (e.g. bulk conveyancing and initial contract drafting) can realise significant tangible and intangible benefits for UK law firms (including significant cost savings).

In terms of cost savings, a London law firm employing four secretaries will incur a cost of about £150,000 a year (including all ancillary benefits, bonuses, sickness and national insurance, etc). Typically, but dependent upon the individual department, around half of this work will be copy and audio transcription. If the copy and audio typing is performed offshore, a firm can expect to save £50,000 per year. Additionally, financial savings are accrued from a variable costing model whereby offshore support staff are not directly employed by the UK law firm and therefore the UK firm only pays for work completed. The overhead savings go beyond the salary differential. By moving the workload to another location, a firm can realise additional benefits in terms of office accommodation, either by closing offices (or downsizing), or by fitting more fee earners into office-space previously occupied by secretaries.

Communication is key . To achieve success within an outsourcing arrangement it is vital that everyone involved understands the rationale behind the deal, the benefits, the approach and the timetable. In conjunction with this, open and honest communications with the law firm at large, will leave everyone well-informed of the firm’s intentions. Offshoring is a realistic and cost-effective opportunity, but only if it is the right process that is outsourced, to the right partner, in the right location, in the right way.

Paul Aggett is chairman of Magellan Consultancy Services

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