Confidentiality and data security are apparently the key issues which concern the legal process outsourcing (LPO) market. The LPO market which is still in its infancy, will need staunch measures to ensure data security but prior to that their biggest challenge is winning clients' confidence.   

"Developing a culture of privacy and data protection," says Salman Waris, operations manager, Legal Circle, "is more important. People should be educated about what they are handling...and what the repercussions could be." Waris, who is an information technology attorney at Fox Mandal Little, Legal Circle's parent company, has considerable experience in dealing with data security cases.

In the recent past, cases of data theft and leakage had rocked the nation, giving way to very serious concerns about how data thieves could be tamed. LPOs make a highly vulnerable  domain. To a large extent, an LPO's success and failure will depend on its ability to swear by confidentiality, and data security. In either case, LPOs will always remain under scrutiny over the requirements of data security.

The BPO industry has been grappling with data theft problems and trying their best to ensure that they do not face any such issues in the future. However, in the Indian legal system there is a lacunae regarding privacy and data protection law. Nor is there much emphasis being laid on data handling procedures and legal requirements internationally for processing and handling this information during the process training stage. Given the fact that the LPO market is predicted to grow manifold in the years to come, a definite agenda is to enact a law to deal with such data theft issues.

The LPO segment is poised to cross $6 billion by 2010 and touch $15-$20 billion by 2015. Possibly  giving rise to newer concerns and problems. NASSCOM has identified the "convergence of the three components -  technology, people and processes - as an answer to this problem of data security. Many a times technology cannot be the sole answer, giving way for focus on people themselves.

Legal Circle, one of India's upcoming LPO uses the "people approach", to deal with the issue of confidentiality and data security. "We have built a training module on such issues that can be merged with the regular process training requirements of outsourcing entities and comprises extensive sessions on data handing, privacy and data protection procedures and legal requirements in the US and UK. This course has been developed by internationally acknowledge experts and lawyers who are registered in the US and UK," says Waris. "At the end of each training a certificate is provided to each of the participants certifying that the individual has been imparted training on such issues and then assessed on the same in keeping with international legal standards and has qualified the test," he adds.

An estimated 1200 professionals already work for LPOs. Out of the 80,000 lawyers that India produces every year, many will definitely take a leap into the LPOs for lucrative pay packages and initial experience. The workforce in question is educated and highly specialised. This is a domain much different from its BPO counterparts.

India is seen as a very lucrative market for law firms and legal departments of big companies willing to outsource research and other basic work at low cost. Quality is another factor that cannot be compromised. "Low labour cost is one advantage," says Soumitro Chatterjee, CEO Legal Circle. "Good quality of lawyers in India is another advantage," adds the enthusiastic CEO of the upcoming LPO firm. Apart from the cost and quality factor, similarity of Indian laws with that of the UK laws and a large number of English speaking lawyers, makes India the destination for legal outsourcing work. Thanks to the great British legacy India has!

Around 50 LPOs currently operate from India. But only a handful of them are actually able to provide the high-end quality that is required to sustain the LPO wave that is poised to take India by storm in the coming years. "Sustainability," as Chatterjee puts it, "will be the issue. Only those who meet the quality or standard required, will be able to survive in the market," he opines. LPOs are a more specialised domain as compared to the BPOs. "No one will give you work unless they know you well," Chatterjee adds. Legal Circle owes its credibility to the much revered services of its parent company, Fox Mandal Little, one of the oldest legal firms in India. But such is not the case with all other LPOs and there are issues which firms need to deal with before establishing itself in the LPO domain. Ensuring confidentiality will be one important element to sustain in the market.

Rosemary Marandi