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Legal Due Diligence and Legal Outsourcing

Many departments or organizations outsource legal support services from an external law firm or legal support services firm. It is mainly done by experienced paralegals and attorneys. Legal Process Outsourcing is a high-end industry that works with a skilful blend of forensic, technical and legal expertise.1

It requires deep confidentiality and provides convenience and efficiency in the work.

Advantages and Importance

There are several key advantages gained by using an LPO service and these advantages include the following:
Saves Cost:
LPOs lessen the burden of cost on areas like legal research, skilled labour, etc. Depending upon the type of legal service being outsourced Outsourcing drastically cut down the operating cost by half.

Staff and Scalability of the firm:
Educated and experienced workers uplift the company's growth. LPOs offers flexible staffing and scalability that creates effective client service relations by recruiting talented people to enhance business.

Latest Technology and Leverage Time Zone Differences:
LPOs help small firms in a matter of technology as they are well versed with all the latest ongoing innovations. Some clients have the ability to complete the work on a 24-hour basis. It also connects workers from different time zones.

The Disadvantages
It causes dispute settlement some Countries have strict data and privacy laws that increases the liability on the buyer.

Hidden Costs:
LPO�s decrease in the costs of services but there are some masked costs that affect the customer code of conduct. These Hidden prices are included in the overall pricing of outsourcing service.

Work Complications:
All Law firms maintain the confidentiality of cases and information as it is vital for customer relationship. The possibility of misplacing any information often stops clients from outsourcing legal processes which in turn affects and disrupts the quality of work.

Legal Due Diligence
A legal due diligence investigation is seeking verifications of information about the business by viewing documents and interviewing employees to understand that investment or purchase is beneficial. When the information is collected and analyzed, a legitimate decision is made. IT helps you to understand your business and help you investigate befor a merger of main sale before the process of negotiations begin.

The Process
In Legal due diligence, the buyer's firm determines the current status of the company by analysing the present position holding of the company. It effectively helps in understanding the needs and expectation of the buyers to lay out plans for future projects.

  1. Planning Phase:
    first step is to frame the exact scope of the exercise and specific focus areas. This ensures a smooth supply of information, which in turn facilitates speedy completion of this entire process.
  2. Data Collection Phase:
    The second phase of the diligence exercise involves preparation of a basic checklist of the nature of documents to be shared by the target company.
  3. Data Analysis Phase:
    The data shared by the target company is actually analysed by the due diligence team.
  4. Report Finalization Phase:
    The Final Due Diligence Report (�DD Report�) is prepared by the team. The Due Diligence Report is one that essentially highlights and summarizes all the major findings of the team at one consolidated location.
This article is a brief understanding of the process of legal due diligence and legal outsourcing has in any given commercial transaction. A careful perusal of the process clearly establishes that every stage in the process has specific requirements that must be carefully taken note of, and fulfilled. To sum up, one may conclude that successful diligence and outsourcing lies at the very root of every deal.

  1. Legal Outsourcing ,available at,
  2. Top Advantages of legal process outsourcing,available at ,
  3. LPO Advantages and Disadvantages,available on articles/lpo-advantages-disadvantages-522881.html

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