Surging business activity and rising regulatory scrutiny have bolstered demand for LPO services
Los Angeles, CA (PRWEB) August 19, 2014
Legal process outsourcing (LPO) services have a buyer power score of 3.7 out of 5. This medium-high score reflects a mixed bag of favorable and hindering conditions that have been influencing buyer negotiation power over the three years to 2014. During the period, strengthening business activity and rising regulatory scrutiny have underpinned demand for legal services, particularly relating to business and commercial law, according to procurement market research firm IBISWorld. Faced with pressure to reduce overhead costs, law firms and in-house legal departments have increasingly outsourced lower-end legal services to LPO firms. While heightened demand has contributed to price growth over the past three years, mounting market competition has prevented major price spikes.
Despite a few prominent players, such as Pangea3 and Infosys, most service providers are small to midsize firms that operate on a local or regional basis and face a fierce competitive environment. While large firms offer a wide range of LPO and other related services, small and midsize firms focus on a certain niche. According to IBISWorld, the abundance of suppliers and low service specialization make it easier for buyers to switch suppliers, thereby leveraging buyer negotiation power. Buyers have a stronger hand in price negotiation because most suppliers offer similar types of services.
Over the next three years, market share concentration is expected to increase as large firms seek to acquire smaller competitors to expand their service offerings and geographic presence. Heightened market share concentration can diminish buyer negotiation leverage by reducing the pool of suppliers and price competition. A medium total cost of ownership is another hindrance to buyer power. While LPO services serve to boost client efficiency, buyers still have to allocate some time from their primary operations to implement the service. For more information, visit IBISWorld’s Legal Process Outsourcing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of legal process outsourcing (LPO) services or legal outsourcing services. Law firms and corporations use an outside service provider for various legal services. Vendors provide legal support services, like due diligence, litigation, corporate compliance, document review, writing, legal research, patent services and drafting of briefs and pleadings, to buyers. Some buyers offshore their legal work by outsourcing it to a company in another country. This report excludes legal management software and temporary and permanent legal staffing.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.