The recent rumors of legal outsourcing have been sending small shivers of concern through the minds of many contract attorneys. I know I’m not immune to it myself. Outsourcing is not a new phenomenon but when it affects your profession, it becomes very personal and real.
Honestly, it is not difficult to see why law firms and corporations would want to move their man power intensive legal work offshore to countries that command much lower wages. By outsourcing their work overseas, law firms and companies can potentially and substantially decrease their cost of intellectual labor. The natural place to outsource document review is India, an English speaking, low wage, and low cost of living destination. Due to tremendous language hurdles, other low labor cost countries like China or Vietnam would not be feasible so India is probably the best bet.
Despite stories of legal outsourcing that we’ve been hearing about recently, why am I not concerned that the outsourcing movement will affect the contract attorney market substantially? That’s because I don’t think the established conservative legal market will readily accept this type of employment and cultural shift. I also don’t think legal work is as easily exportable as other fields that have been outsourced such as customer service and information technology. This is just my own preliminary take on the matter.
The Conservative Legal Culture Will Resist
The world of law firms, partners, and associates is a very old fashioned and traditional profession, steeped in conservative values. Unlike the private corporate world, law firms have been very resistant to modernization of its cultural norms and old ways of doing things. For example, while corporate America has generally embraced a greater push towards diversity in the workplace, law firms have been very resistant to change, as minorities as a whole still comprise less than 10 percent of all attorneys.
Law firm partners are also generally very old fashioned and I feel they will be very resistant to such employment shifts. Law is still practiced the same inefficient way it has always been practiced. It’s only recently that some courts finally began accepting electronic filing for example. The old bigwigs will not be entirely embracing of the idea of sending tons of privileged and confidential legal work product to a third world country and allow some locals, who they will never meet in real life, ready access to such privileged information.
There will be always be trailblazers in the legal field who will attempt to migrate some legal work overseas, but I truly feel this movement hype will ultimately subside.
Other Outsourcing Attempts Have Not Entirely Succeeded
The concept of outsourcing work to a country with cheaper labor costs is nothing new. But the reality is that outsourcing is fraught with serious confidentiality and adaptation difficulties. There is also the hidden cost of customer attrition. Many companies who have tried to outsource their work overseas have not been entirely successful. They have also not reaped the overall financial benefits they initially expected when they began their outsourcing efforts. Many have ultimately brought the work back in-house.
It’s interesting to read a few stories of outsourced work to India but I just don’t see it happening successfully on a grand scale. Instead, I think the greatest long term threat to the current document review attorney market is technology itself. One day, perhaps many years from now, it is possible that reviewers may be replaced by super efficient software that can keyword sort through documents at lightening speed, completing work in a few minutes that would have taken a lawyer hours or days to complete in the past.
The market will continue to adapt over time and so should we.