Asia Pacific Legal Process Outsourcing (LPO) Market size crossed USD 4.5 billion in 2020 and is estimated to observe around 24% growth rate between 2021 and 2027. High demand for low-cost services from countries including India, China, Malaysia, Indonesia, Thailand, and the Philippines has resulted in the rising demand for legal process outsourcing.
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The expanding corporate sector in the developing countries in Asia Pacific offers growth opportunities to the legal process outsourcing (LPO) industry. Foreign direct investments in the region are led by finance & insurance, manufacturing, and wholesale trade. For instance, Japan is the world’s third-largest economy and the U.S.’s fourth-largest trading partner. The U.S. Foreign Direct Investment (FDI) in Japan (stock) was USD 131.8 billion in 2019, a 16.4% increase from 2018. The changing trade regulatory landscape will support the market growth.
Organizations operating in the selling or manufacturing of goods are subjected to various laws and product safety standards, which vary depending on the type of product or the industry. International companies that are aiming to expand their market presence in the region will avail the services offered by LPO providers for their legal requirements. The expanding trade sector will spur the demand for LPO service providers.
Asia Pacific Market, By Service
The rising number of large corporate organizations expanding their market presence in the region will fuel the contract drafting LPO services market expansion. Companies, such as Microsoft Corporation and IBM Corporation, are capitalizing on the expanding industrial sector in the region. Government organizations are encouraging the establishment of SMEs to ensure economic growth and global competitiveness.
Government organizations are also encouraging the adoption of the latest technologies, such as AI and 5G, which will boost the advent of digitalization across several industries. The complex regulatory framework and complicated tax system in the region encourage organizations to outsource their legal works to avoid unnecessary litigations. This makes outsourcing legal services an ideal option.
Asia Pacific Market, By Location
The demand for offshore LPO is growing in the Asia Pacific region. Developed countries in North America and Europe are outsourcing their legal operations to the developing countries in Asia Pacific including India, the Philippines, and South Korea to avail the advantages of cost reduction. The market rate for legal services in the region is a small percentage of the charges incurred in the UK or the U.S.
LPO service providers offer a full range of managed & comprehensive services using custom & flexible service delivery models in response to the high demand from the law firms in Europe and North America. The presence of several qualified law practitioners, who have graduated from renowned universities, assures that law firms in these countries will offer high-quality services at lower costs. Tasks including data entry and document review are the most outsourced tasks to countries in the Asia Pacific region.
Competitive Industry Landscape
Prominent LPO market players operating in the Asia Pacific region include Capgemini SE, Deloitte Touche Tohmatsu Limited, KPMG International Limited, Infosys Limited, PwC, Ernst & Young, Wipro Limited, Pangea3, Evalueserve SEZ, and LEX Outsourcing.
Companies are consistently emphasizing on expansion strategies to serve enterprises, institutes, and organizations. For instance, in June 2019, Ernst & Young (EY) acquired the Pangea3 Legal Managed Services (LMS) business from Thomson Reuters. With this acquisition, EY expanded its service offerings to help corporate legal departments around the world.