India's contribution to LPO trade to double: Study

India's contribution to the $250-billion Legal Process Outsourcing  business will nearly double to 6-7 per cent by 2010, an Assocham study said.

The country could recieve a big chunk of the LPO business from more than 200 top US companies, which are on a lookout for offshore locations to achieve 30-70 per cent savings, the industry body said in a release.

India is known for its large pool of engineering graduates many of whom are being attracted to patent services segment. Estimates suggest that by early 2006, there were over 400 professionals engaged in providing patent services, the study said.

There are over 600 registered agents with the Indian Patent Office and 300 unregistered agents, of which one-third currently provide patent services to European and American clients, the study said, adding that the number is likely to double by 2010.

"Conservative estimates of addressable market potential for legal services outsourceable from the US alone are pegged at $3 to 4 billion. This comprises paralegal and research support, contract drafting, library services, patent and trademark prosecution and litigation support," Assocham president Anil K Agarwal said.

However, despite the encouraging prediction, legal practices are subject to a number of external forces which include changing economies, marketplace maturation, earning brand and marketing expenditures, the study said.

There are restraints on revenues driven by client. Not only are clients seeking discounts on rates, but they are applying more scrutiny to bills than ever, often questioning the number of lawyers, level of lawyer assigned, and even hours recorded, it said.

The major countries providing legal services market include USA, UK, France, Australia, South Korea, Japan and China.

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