Ethical,Legal,Process,outsourc business, insurance Ethical or Legal - Legal Process outsourcing : Kazim Ali Kha

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Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-qformat:yes;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:10.0pt;font-family:"Calibri","sans-serif";} Benjamin H Brewster once said “lawyer starts life giving $500worth of law for $5, and ends giving $5 worth for $500”.   Interestingly, F W Taylor father of scientific management wouldhave referred the above condition as misalignment of labor, task and rewardssystem. A close look would have a few similes between what is called asprinciples of scientific management and the purpose of outsourcing since bothconcepts promote division of work (specialization), de-skilling of worker anddehumanization of workplace that are key for process excellence in business.   Most of us know that virtues of outsourcing are well recognized inthe information age today be it about exploiting location advantages, gainingexcellence, fostering innovation, accessing new markets and so on. Corporationsas we recognize in the process of multiplying value to shareholder’s wealth,are some ways demonizing the philosophy of “doing-all-of-it-by-own”, instepping up targeted growth engines. Partnerships are sought off shores, new geographiesare explored, business models are tested and talents are accessed to createsignificant impact on endearing value creation for stakeholders. The subject of outsourcing however, is no new to us and in thecontext of India’s growth story it is just a remarkable celebration. Thanks tothe growth India has experienced in ICT, Financial services, R&D etc., inthe last decade to become undoubtedly the best destinations for outsourcingwork in the world. Legal process outsourcing (famously known as LPO) is today yetanother high tide in the raging seas of outsourcing that carries enoughcurrents with it to sweep away the basic nature of law as a practice anddelivery of legal services worldwide. Client’s expectations and needs of quantumquality in service delivery appear to have diametrically stretched businessprocesses and hence rewriting new corollary in client relationship management. Thosewho are witness to these underlying movements will ascertain that law as apractice seesaws in its content, scope and criticality particularly when legal/nonlegal work in the guise of cost, quality and other strategic advantages areshipping out to different destinations.  On the other hand, the visible fearof losing control of the process, shrinking job profile and risking quality ofservice are concerns that thwart attorneys and law firms in the US  and UK from outsourcing work to nations likeIndia.    Recognizing these imperatives the bar associations for instance ofFlorida, Los Angeles County, New York City, North Carolina and San DiegoCounty, which are few significant jurisdictions have framework of rules andviews with ethical and practical considerations. It is noteworthy to understandthat the rules of ethics and professional responsibility are conventionallydelegated by the courts to the state bar associations. The proposed considerations by any state barare enforceable by the state court in that particular state but in absence ofapplicable statutes, the courts then will look up to bar associations be itlocal or national for necessary help.   The American Bar Association (popularly known as ABA) the largestvoluntary professional membership organization in the world takes practical viewof professional obligations and industry imperatives from time to time. Althoughthe ABA Ethics Committee opinions are non-binding, yet they do serve as animportant guide and provide yardsticks to address issues if any..   The landmark opinion was issued last year by the Ethics Committeeof the ABA and terms like jurisdiction, competent representation, layperson,client confidentiality, client consent, supervision of non-lawyers, avoidaiding non-lawyers in the unauthorized practices of law, commodity work and soon, which have seen various interpretations are dealt under a set ofconsiderations proposed by ABA.      The following few are some of the clarifications summarized whichtherefore act as building blocks in the process of outsourcing legal work:  1.       Responsibility: Lawyer may outsource legal ornon-legal support services provided the lawyer eventually responsible for providingcompetent legal services to the client since lawyers also engage variousparties (including both non-lawyers and lawyers) in servicing clients  2.      Diligence:Ensuring conduct of the service provider is compatible with professionalobligations particularly for a distant offshore location.  Important considerations are referencechecks/background investigations of lawyer or non-lawyerproviders/intermediaries and if required conduct interview, educationbackground vet, site visits etc 3.      ClientConsent: Written confidentiality is advised however depending on the level ofsupervision contemplated by the outsourcing lawyer, obtaining informed clientconsent before engaging outside (offshore or onshore) assistance may benecessary 4.      Fees:Reasonability of the fees is necessary. Permission to pass along to the client the costs of using serviceprovider, including reasonable allocation of associated overhead expenses, butwithout any mark up in any ways 5.      Equality:No distinction between onshore outsourcing and offshore outsourcing, with theexception of the level of diligence performed and background checking 6.      OffshoreRegulatory Systems: Comparability of the legal education system with that ofthe U.S., professional regulatory systems incorporate equivalent core ethicsprinciples and effective disciplinary enforcement systems. In addition, legalsystem protects or sustains client confidentiality and provides effectiveremedies to the lawyer’s client for disputes rising if any 7.      Practicingof Law:  Each of the local barassociation opinions addresses this issue, and concludes that the outsourcingof legal services, either offshore or onshore, does not constitute theunauthorized practice of law since the ABA Ethics Committee noted that it lacksauthority to express an opinion regarding whether any particular serviceprovider is engaging in unauthorized practice of law 8.      Endorsement:Outsourcing is good for the health of the profession itself 9.      Catalysts:  ABA is instrumental in necessarily settingforth clear guidelines has immensely helped in making Lawyers and Attorneys inthe U.S., to pursue outsourcing for significant advantages All such moves and considerations appear to bring about paradigmshifts in the business landscape of legal process outsourcing.  The larger question remains to be answered iswhether outsourcing means for a professional lawyer in the US to decide handingover either his court, the case brief or the client relationship to the Indianlegal professional?   Notes& References 1.      elaw forum estimates the total cost oflitigation to be $210b equivalent to one third of the after tax profit offortune 500 companies – The Metropolitan Corporate Counsel Feb 082.      Presently only 3% of the law firms of theUSA and UK outsource their back office work to India – Value notes july  09 – Value notes 3.      The India revenues from legal services offshoring are slated to grow from $146 million for the calendar year 2006 toreach $640 million by end 2010 – Value notes 4.      The industry employed around 7,500 peoplein the legal off shoring space in India as of end 2006. The number of employeesis expected to reach 32,000 by end 2010 – Value notes5.      Estimates that the number of jobsoutsourced in the legal services area will grow to 35000 by 2010 and up to79000 by 2015 – Forrester Research6.      ABA Formal Op.08-451 (2008), N.Y.C BarAssoc. Formal Op. 2006, San Diego County Bar Assoc. Op. 2007-017.      Florida Ethics Op. 07-2; N. C State Bar,Formal Ethics Op.12, Calif. State Bar Assoc. Formal Op. 1994-1388.      Colorado Bar Assoc. Ethics Op. 1712(Same);IL Adv. Op. 98-029.      N. Y. C of Professional Responsibility(the Code) – DR-1-104,DR3-102,DR4-101,DR5-105&107, DR-6-101, EC2-22, EC3-6,EC4-2, EC4-5