Although the Legal Process Outsourcing (LPO) market in India is thriving in the financial crisis, Indian law graduates are not necessarily desiring an LPO career.
According to a survey conducted by research firm ValueNotes, many law graduates did not intend to pursue an outsourcing career, although around 45% felt that the remuneration on offer was better than that offered at a law firm.
One of the possible reasons cited for the disinclination was that many students were unaware of the LPO industry, despite the considerable media attention over the year. Students also said that the repetitive, process-driven nature of outsourcing work was another detractor.
There has been much debate about competition heating up between LPO companies and law firms in the fight for legal talent. ValueNotes advised that, in order to attract more talent, LPO companies would need to break down negative perceptions through long-term strategies such as establishing 'partnership' links with universities to scoop top talent.
A similar sentiment was expressed by Russell Smith, chairman of LPO firm SDD, who said that more graduates will consider an LPO career as awareness develops but that, in the short term, LPO companies will not be the outright winners of the competition for lawyers.
"During the lag between the current pool of talent and the increase in that pool in the future, the competition for the best law graduates and lawyers will be won mostly by high-end providers," he said. "This is because higher value work tends to be more interesting and challenging, and because the higher profit margins allow for higher salaries."