Tuesday, February 1, 2011

Major setback to LPO if Connecticut Bill is accepted | LPO and CT bill to prevent outsourcing legal work

The US state of Connecticut has introduced a bill designed to prevent law firms and corporates from offshoring the drafting,reviewing and analysing of legal documents to workers overseas.This could impact the legal process outsourcing (LPO) sector in India.LPO players are also worried that other US states may pick up the cue from Connecticut.

Under the bill,proposed by Connecticut state representative Patricia Dillon,"unlicensed'' offshore workers who engage in drafting,reviewing or analyzing of legal documents for clients in Connecticut could be charged with unauthorised practice of law,according to a report by The Connecticut Law Tribune.

The legislation like this will give way for the policy of protectionism which is not fair in this global village concept.

This is happening at a time when US law firms are increasingly looking at LPOs strategically,as long-term partners,to offer more value to their clients.A lot of legal work -- from financial services,IT and entertainment sectors -- is coming to India from New York,New Jersey,California,etc,"he said.Some US attorneys familiar with the LPO model have called it "a sloppilydrafted bill'' that ignores the substantial body of principled analysis of issues surrounding legal outsourcing in favour of facile protectionism that won't cure the legal professions real ills.