Saturday, April 26, 2008

South Pole Reindeer can Circle the Globe at a fraction of the price of North Pole Reindeer


I posted earlier about outsourcing news from India. I happened to come across this other law blog, which was mentioning much of what I had mentioned before but with other items that I had not seen. I know some of the blog's post is stuff that I had covered before, but there are some other interesting items. The blogger doesn't cite to where he received the other information so I am sure it's ok if I just lift the information he has already lifted. No copyright violation there right?
"Changes in litigation procedures are boosting momentum in the LPO trade. Amendments to federal rules require parties to share electronic documents, such as e-mail and Microsoft Office files. That typically means both sides must review thousands of documents to prevent the inadvertent disclosure of confidential information to the other party. The service costs about $1 per page in India but can range from $7 to $10 per page in the U.S. "Some clients don't want to spend that much, especially if they don't even know how much their damages could be," says Conrad Jacoby, owner of efficientEDD, a legal-technology consultancy in Dunn Loring, Va.
TransUnion, in Chicago, has successfully outsourced legal work for four years, according to general counsel John W. Blenke. "Every law firm is really an outsourcer. One lawyer usually can't do it all," he says. Indian attorneys are currently reviewing more than a million litigation e-mails for the company, which costs less than $10 per hr., he says. He would pay $60 to $85 per hr. to a U.S.-based legal-staffing company for the job. Blenke says he's cautious, however, about the work he outsources. "You can only do it with a few things. It has to be an area that you know well, so you can build processes around that," he says.
DuPont saved $500,000 in 2006 by outsourcing paralegal work to Chicago's RR Donnelley, which uses facilities in India and the Philippines to review documents for the chemical giant, says Thomas Sager, DuPont's chief litigation counsel. "There's been some internal resistance, and from the outside too, about working with providers thousands of miles away. But geographic separation is now a fact of life," says Sager."

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