1. Trusted Advisory Services STRICTLY CONFIDENTIAL Copyright
2014 Progressive Intelligence USA UK INDIA Progressive Intelligence
Partners in Achievement 9225 W. Jewell Place, #101, Lakewood
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110092 INDIA [email protected] Procurement of Legal Services Scope
and Aspects for Consideration Goals: Efficiency, Effectiveness,
Excellence Dr. Sanjeev B. Ahuja Managing Director
[email protected]
2. Overview Background Market Opportunity Legal Process
Outsourcing Structured Models Way Forward 2 STRICTLY CONFIDENTIAL
Copyright 2014 Progressive Intelligence
3. Background Why procure legal services at all? Objectives may
include strategic, financial, and operational imperatives, aimed at
lowering legal spend, improving the return from such spends,
optimizing the legal function, and improving the processes to
support the business Essential Cautions Maintain control throughout
the engagement process Preserving its professional privilege,
client confidentiality, rights/liens on data assets, access by
foreign law enforcement and intelligence authorities, and
preserving capabilities for e-discovery/search/analysis of all
artefacts Mitigate the global risk of procuring sensitive legal
services from 3rd parties Ensuring regulatory compliance,
information security, data protection, client confidentiality, and
damage containment 3 STRICTLY CONFIDENTIAL Copyright 2014
Progressive Intelligence
4. Market Opportunity How has the industry changed? Todays 25B
liberalized/open market for legal services represents an
unprecedented opportunity, allowing clients to look into
Audit/Tax/Advisory, Insurance, and other professional service
providers instead of law firms. Other Alternative Business
Structures Loosely federated networks of specialist lawyers now
address full spectrum of geographies and jurisdictions,
internal/external clients, expertise areas, industry sectors, and
functional specializations Seamless integration with legal service
providers resources, processes, and billing systems further
improves efficiencies and productivity Technology can be used to
further reduce costs and streamline workflows, online S2P/P2P
systems integrate end-to-end procurement processes and contract
life cycle management, business social media platforms allow close
collaboration, and access to data enables useful analytics and
reporting 4 STRICTLY CONFIDENTIAL Copyright 2014 Progressive
Intelligence
5. Legal Process Outsourcing Has the legal process outsourcing
industry matured? LPO market in 2013 was c. $1.4b with CAGR of c.
30% and projected to grow to $8.6b by 2020. Outsourcing non-core
legal activities facilitates higher resource utilization for cost
effectiveness, driving profitability and leaving in-house counsel
to focus on tasks which are high-value in nature. Burning Issues
Challenge is to grow sufficient technical legal skills in-house,
given limited availability of resources and associated costs.
Capacity planning with elasticity requires matching demand/supply
profiles Preserving institutional knowledge while designing
scalable resources requires characterization of core competencies
and areas of expertise, in order to distinguish between high value
and commoditized areas Provisioning client-facing and internal
legal services means distinguishing: Requirements for legal
counsel, negotiation support, contract drafting, etc., from support
needs for DB mgmt, eDiscovery, KM, and production of support
collateral Outsourcing brings with it industry standards and best
practice with SLAs 5 STRICTLY CONFIDENTIAL Copyright 2014
Progressive Intelligence
6. Structured Models Which engagement model is suitable?
Loosely referred to as partnering with a law practice, an
engagement model for legal services can take on one or more from
among several options, from simple augmentation with 3rd-party
resources, to asking a provider to build, operate and transfer back
a legal support unit, and possibly even acquiring a captive law
firm. Moving away from Traditional T&M Pricing models are
moving away from blended rates to pay-for-performance, unbundling
based on task/experience/expertise, committed retainer/resource
with draw-down, on-demand resources at take-or-pay over a fixed
period, fixed price or fee caps, and success-based bonus/incentives
Competency models will allow clear stratification across skill
type, level, experience and availability of resources; a basic
driver for any agreement Operating models, whether preferred,
multi-source, or ad-hoc open up options for optimization, including
leverage from economies of scale Governance models keep the focus
on performance assurance with measurable metrics, accountability,
and push for continuous improvement 6 STRICTLY CONFIDENTIAL
Copyright 2014 Progressive Intelligence
7. Way Forward What does good look like? Whichever type of
legal services are procured and irrespective of an engagement
model, success is predicated on focusing with acuity on key
objectives. Unless performance is quantifiably measured it is
unlikely to come up to expectations. Characterising Value Value
must be characterised in terms of metrics that are meaningful to
the business, from lowering legal spend, improving the return from
such spends, optimizing the legal function, and improving business
support processes Define a strategy to derive target value and map
out an execution approach on the back of that to ensure optimal
sourcing, resource utilization, and steady contribution to business
profitability Identify practical but incisive mechanisms to track,
evaluate and re-align delivery to evolving objectives, while
proactively managing relationships with providers to ensure that
any divergence is caught early and curtailed 7 STRICTLY
CONFIDENTIAL Copyright 2014 Progressive Intelligence