According to the newly published survey, “Future of Legal Process Outsourcing (LPO),” 87% of in-house counsel noted that it is more difficult to manage legal risks related to company data than compared to five years ago. Additionally, 69% of those surveyed say they have seen an increase in spending on managing legal risk and compliance over the last five years. The survey was conducted by UK legal journal Legal Business in partnership with Clutch Group in December 2013 and received responses from over 200 senior in-house lawyers in the UK, Asia, and the US.

The Legal Business survey also revealed that LPOs have a large role to play in helping companies tackle large data and help companies mitigate risk. Highlights of the survey include:

* 80% of respondents say they expect to see the Legal Process Outsourcing industry expand and improve its services over the next five years.

* 58% of respondents say that LPOs and law firms need to work together on compliance and risk matters.

* 37% of in-house lawyers say that LPOs are better equipped than law firms to use advanced technology and to use data and risk analytics.

* In-house counsel are using LPOs primarily for investigations and due diligence exercises; general litigation support and eDiscovery are close seconds.

* The UK LPO market is less developed than the US: 38% of UK-based respondents say they have used LPOs for legal work, compared to 50% in the US.

* An increase in the level of civil litigation is seen as the biggest driver behind rising legal costs. Greater scrutiny from regulators is close behind.

According to Alex Novarese, Legal Business’ Editor-in-Chief, “Our survey demonstrates the tremendous challenges and pressure facing today’s in-house counsel. From rising costs to exponential growths in data, in-house counsel are looking for efficient and cost-effective strategies to manage these new realities. If alternative providers can satisfy blue-chip clients – and a sizeable group of clients report that they do – they will keep moving up the value chain.”

These survey results and comments are in line with a number of expert predications that the next five years will see new market disrupters that begin to change the fundamental nature of legal service delivery. These new LPOs will not just focus on lowering the cost of legal services, but will try to reinvent the model altogether. There will be continued experimentation in developing new platforms for delivering legal services that will allow in-house counsel to focus on high level advisory work rather than routine assignments work. In all, the future looks bright for the LPO industry.