Legal Process Outsourcing Market Overview
The Legal Process Outsourcing Market size is projected to grow from USD 16.7808 Billion in 2024 to USD 80.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.67% during the forecast period (2024 - 2032). Additionally, the market size for Public Key Infrastructure (PKI) was valued at USD 13.8 Billion in 2023.
The Need for cost-efficient handling of digital legal resources and Effective utilization of e-Discovery resources are the key market drivers boosting the growth of the Legal Process Outsourcing market.
Figure1: Legal Process Outsourcing Market, 2019 - 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Legal Process Outsourcing Market Trends
Increasing trend of improved and electronic mode of legal processing services
Legal research, documentation, citation, and ensuring litigation support to the contract are all being replaced by AI in legal enterprises. Instead, automation software is used to complete the task. It is possible to automate about 25% of a lawyer's time with this Automation and Productivity. Most law firms have implemented document and business process automation to achieve this. They're also using Natural Language Processing (NLP) and document automation to cut down on the monotony at work. Virtual Legal Assistants are also becoming increasingly popular, particularly among large corporations. For their data storage needs, law firms are turning to cloud storage. Virtual Reality (VR) and Augmented Reality (AR) are increasingly adopted for remote consultation of clients, training new lawyers, and collaborating with experts. All these technological developments are shaping the new normal of the LPO market in the global market.
For instance, cloud ERP enables customers to gain decisive insights into their financial position and profitability. It also aids in the reduction of risk, cost savings, and the enforcement of compliant spending. Oracle, for example, has been a fantastic partner in the digital transformation process. Through a shared infrastructure, it has delivered actual streamlined performance. Better financial management, end-to-end invoice processing, documentation, and smarter contracting benefit their users. It also aids users in delivering decisive financial and profitability insights, reducing risk, and increasing cost savings. Hence, all these improved factors create a massive opportunity for the growth of the LPO market.
Legal Process Outsourcing Market Component Segment Insights
Legal Process Outsourcing Component Insights
Based on components, the Legal Process Outsourcing Market segmentation includes Software and Services. The Services held the majority share in 2022, contributing around ~75.08% to the market revenue. Services are an essential component of the legal process outsourcing market as the various services are provided by multiple service providers. The Legal Process Outsourcing Market, based on services has been further segmented bookkeeping & billing, e-discovery, ip technical support outsourcing, legal research outsourcing, litigation support outsourcing, contract drafting, compliance assistance, patent support, data analysis & management and review & management. Document review, witness interviews, case preparation, case summarization, and other services are included in litigation support services. In the legal world, outsourcing litigation support services has become a common practice. These services are being used by a growing number of law firms to ensure the most efficient use of resources and time. Lawyer’s lives have been made easier by these services, which have reduced their workload. Access to a variety of services, economical in terms of cost, access to a third party team and software, greater efficiency, and better work-life balance are the major factors that have made the role of litigation support services extremely important.
Figure2: Legal Process Outsourcing Market, by Component, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Legal Process Outsourcing Organization Size Insights
The Legal Process Outsourcing Market segmentation, based on organization size, includes Large Enterprises and Small & Medium Enterprises (SMEs). Large Enterprises dominated the market in 2022 and is expected to continue dominating the market during the forecast period 2022-2032. In their ongoing efforts to cut costs, streamline operations, and dedicate employee activities to core functions, large corporations are gradually accepting legal process outsourcing. For instance, for a long time the large corporations such as Microsoft have outsourced their patent filing work to India which enables Microsoft to focus on their core activity and get patent work done from legal workforce with essential expertise based in India at a best cost price. Additionally, large companies have to deal with multiple cases and the internal team working on it that did not allow reach proper conclusions, thus a litigation outsourcing specialist would be dedicated to such cases and would have staff and resources that could scale to meet the needs of the company in a very quick turnaround.
Legal Process Outsourcing Service Location Insights
The Legal Process Outsourcing Market segmentation, based on service location, includes On-Shore Outsourcing and Offshore Outsourcing. Offshore Outsourcing dominated the market in 2022 and is expected to continue dominating the market during the forecast period 2022-2032. In recent years, the legal profession has seen a global paradigm change in the delivery model for legal services. This new paradigm, known as legal process outsourcing or LPO, entails moving the work of attorneys, paralegals, and other legal professionals to external contractors in the United States and abroad. Legal outsourcing is becoming increasingly popular as law firms and corporate legal departments strive to reduce costs, boost flexibility, and broaden their in-house expertise. Offshore legal process outsourcing is a systematic method of assigning complicated legal responsibilities such as document review, contract administration, litigation assistance, and many others to industry specialists based in other countries. Offshore outsourcing occurs when a corporation in the United Kingdom or the United States employs someone from India to handle difficult legal work.
Legal Process Outsourcing Ownership Insights
The Legal Process Outsourcing Market segmentation, based on ownership, includes LLC, LLP, and Proprietors. LLP dominated the market in 2022 and is expected to continue dominating the market during the forecast period 2022-2032. A new trend that has been observed of-late is that more and more entrepreneurs have started opting for Limited Liability Partnerships (LLP). LLP is a formal structure that provides at least some legal protection to the partners from the partnership's liabilities. The Liability of each partner is limited to his share as written in the Agreement filed at the time of creation of LLP as compared to Partnership Firms which have unlimited liability. In LPO market it is a most common type of ownership. Low cost of formation and is easy to form is the key driver of LLP in LPO market.
Legal Process Outsourcing Operations Insights
The Legal Process Outsourcing Market segmentation, based on operations, includes Captive Units and Independent. Independent dominated the market in 2022 and is expected to continue dominating the market during the forecast period 2022-2032. An independent firm is hired to construct a project in line with the specifications of the law firm or corporate legal entity, and the project/facility is finally delivered to the client after it is fully executed or developed. Some of the major independent LPO providers in India are SunLexis (headquartered India), Lexplosion Solutions Private Limited (headquartered India), GSB LPO Services (headquartered India), Pangea3 (headquartered US), Infosys (headquartered India), Wipro (headquartered India), Integreon (headquartered US), Consilio LLC (headquartered US), among others.
Legal Process Outsourcing Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific Legal Process Outsourcing market accounted for ~54.48% market share in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is due to a significant number of key players in Asia-Pacific, making it the primary contributor to the market share. Asia-Pacific dominates the Legal Process Outsourcing market due to an increase in Legal Process activity in this area.
It is one of the most lucrative regions for the market owing to the significant low-cost services. The contribution of major countries such as China, India, and Japan drive the LPO market in Asia-Pacific. Due to the significant time difference between the US and Europe, countries such as China, India, and the Philippines are popular destinations for LPO services. This time difference allows for a continuous workforce and access to support services 24 hours a day, seven days a week. Furthermore, compared to North America, the cost of legal services in India is significantly lower. For example, a good lawyer in the US can cost anywhere from USD 500 to USD 1,000 per hour, whereas a lawyer in India can be negotiated down to USD 300 per hour. In a competitive market, this price flexibility allows businesses to manage their budgets and profits better. Large companies will continue to outsource their services in the Asia-Pacific LPO market due to the improving macroeconomic environment, skilled workforce, and growing domestic sector.
Figure3: LEGAL PROCESS OUTSOURCING MARKET SIZE BY REGION 2022&2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
The North America market share can be attributed to the growing demand of legal corporations to achieve services at lower cost. The market in North America is expected to retain the leading position growing at a significant CAGR from 2022 to 2030. Increased workloads in legal departments are hastening the widespread adoption of LPO services in the US. Law firms are up against significant challenges in terms of running their departments more efficiently and cost-effectively. LPO in countries, such as India, provides quantifiable advantages; these include the availability of numerous English-speaking lawyers; whose pay rate is considerably lower than those of their US counterparts. With growing concerns about legal overheads in countries like the US, corporate firms are looking to outsource specific legal proceedings through their legal representatives. These signify the demand for the LPO services in the North America region.
Europe is expected to witness remarkable growth during the forecast period. The UK, however, has a long legal tradition, and the country's law firms are among the leading worldwide sectors. Due to its highly diversified industrial market, the UK is dominating the Europe region's economy. Industries in this region have greater flexibility in terms of expansion and innovation compared to those in Asia-Pacific and some parts of North America. The growing digitization in Europe is expected to drive the LPO market in this region.
The major countries in the Middle East & Africa (MEA) are Oman, Qatar, Saudi Arabia, United Arab Emirates, Kuwait, Jordan, and South Africa. The region has experienced increasing urbanization and industrialization, boosting the expansion of various sectors. The IT sector in the MEA region is anticipated to grow significantly during the forecast period. Economic diversification, high-quality infrastructure, improved connectivity, reduced government rules, and fresh investments in the technology industry are the primary driving forces in the Middle East and African nations' IT sectors. Saudi Arabia, the UAE, Israel, Bahrain, Qatar, and Oman are the region's leading IT investment destinations for the predicted period. Such positive IT-related factors and improved digitization drive the MEA region's LPO market.
Legal Process Outsourcing Key Market Players & Competitive Insights
With a strong presence across different verticals and geographies, the Legal Process Outsourcing market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Legal Process Outsourcing market is highly competitive, with many vendors offering similar products and services.
The major players in the market include UnitedLex, Clarivate, Integreon, Inc., Axiom Law, Elevate Services, Inc., Litigation Services, Infosys Limited, Lexplosion Solutions Private Limited, Mindcrest, COBRA LEGAL SOLUTIONS, QuisLex, Exigent, WNS (Holdings) Ltd., Vee Technologies, and SunLexis. Mindcrest is part of the DWF Group. It provides corporate and law firm clients with best-in-class legal services. To assist clients in meeting their obligations, the company has combined the best of technology with a specialized workforce and proprietary processes. The company holds specialty in contracts management, compliance, legal analytics, and litigation & investigations.
The Legal Process Outsourcing Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Legal Process Outsourcing market include
Legal Process Outsourcing Industry Developments
In January 2022, Integreon, Inc. announced a new alliance with UpLevel Ops, a leading corporate legal operations consulting firm. This alliance provides full end-to-end legal operations support to corporate clients around the globe.In September 2021, Elevate Services, Inc. and Chile-based Alster, a legal service provider announced a strategic partnership combining Elevate Services, Inc.’s global consulting services and Alster’s Latin American footprint to meet the law organization’s operational efficiency, managed services, and digital transformation strategy initiatives.
Legal Process Outsourcing Market Segmentation
Legal Process Outsourcing Component Outlook
-
Software
-
Services
- Litigation Support Outsourcing
- Contract Drafting
- Data Analysis & Management
- Compliance Assistance
- IP Technical Support Outsourcing
- Legal Research Outsourcing
- E-Discovery
- Review & Management
- Bookkeeping & Billing
- Patent Support
Legal Process Outsourcing Organization Size Outlook
- Small & Medium Enterprises (SMEs)
- Large Enterprises
Legal Process Outsourcing Ownership Outlook
Legal Process Outsourcing Service Location Outlook
- On-Shore Outsourcing
- Offshore Outsourcing
Legal Process Outsourcing Operations Outlook
- Captive Units
- Independent
Legal Process Outsourcing End Users Outlook
- BFSI
- Government
- Healthcare
- Automotive
- Others
Legal Process Outsourcing Regional Outlook
-
North America
-
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World
- Middle East
- Africa
- Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 13.8 Billion |
| Market Size 2024 |
USD 16.7808 Billion |
| Market Size 2032 |
USD 80.6 Billion |
| Compound Annual Growth Rate (CAGR) |
21.67% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019- 2021 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Component, Organization Size, Ownership, Service Location, Operations, End Users, and Region |
| Geographies Covered |
Europe, North America, Asia-Pacific, and the Rest of the World |
| Countries Covered |
The U.S, Germany, Canada, U.K., Italy, France, Spain, Japan, China, Australia, India, South Korea, and Brazil |
| Key Companies Profiled |
UnitedLex, Clarivate, Integreon, Inc., Axiom Law, Elevate Services, Inc., Litigation Services, Infosys Limited, Lexplosion Solutions Private Limited, Mindcrest, COBRA LEGAL SOLUTIONS, QuisLex, Exigent, WNS (Holdings) Ltd., Vee Technologies, and SunLexis |
| Key Market Opportunities |
Need for cost efficient handling of digital legal resources Effective utilization of e-Discovery resources |
| Key Market Dynamics |
Need for improved and electronic mode of legal processing services |
Legal Process Outsourcing Market Highlights:
Frequently Asked Questions (FAQ) :
The Legal Process Outsourcing Market size is expected to be was valued at USD 13.8 Billion in 2023.
The global market is projected to grow at a CAGR of 21.67% during the forecast period, 2024-2032.
Asia Pacific had the largest share of the global market.
The key players in the market are UnitedLex, Clarivate, Integreon, Inc., Axiom Law, Elevate Services, Inc., Litigation Services, Infosys Limited, Lexplosion Solutions Private Limited, Mindcrest, COBRA LEGAL SOLUTIONS, QuisLex, Exigent, WNS (Holdings) Ltd., Vee Technologies, and SunLexis.
The Service category dominated the market in 2023.
