Friday, October 16, 2009

A comparison of 4 most popular LPO locations.


 

In this article we will try to make a comparison between India, China, Israel and Philippines for the best LPO locations. The Databox below would help in our assessment.

 

India

China

Israel

Philippines


 

Total Population (as on Oct. 2009)


 

1,170,940,000


 

1,333,420,000


 

7,448,200


 

92,227,100

Median age (half the population is above and half below)

25.3

34.1

29.1

22.5

English speaking people

90,000,000

10,000,000

100,000

48,800,000

Law Graduates

1,180,000

162,146

40,469

45,000

Legal System

(common law or others)

English Common Law

Civil law system

Common law influenced by German Civil law

Spanish Law influenced by US common law

No. of law colleges

> 128

25

10

8

Internet users (in millions)

68

169

2

4.9

Govt. economic policy (1-5);

1-best, 5-worst

2

3

2

2

Time difference with US (EST)

9.5 hrs.


 


 

[Local time in Delhi,
10:33 AM on Saturday, Oct. 15, 2009.

Local time in New York, 1:03 AM on Saturday, Oct. 15, 2009]

12 hrs.


 


 

[Local time in Beijing, 1:03 PM on Saturday, Oct. 15, 2009.

Local time in New York, 1:03 AM on Saturday, Oct. 15, 2009]

6 hrs.

[Local time in Israel, 7:03 AM on Saturday, Oct. 15, 2009. Local time in New York,
1:03 AM on Saturday, Oct. 15, 2009
]

12 hrs.

[Local time in Philippines,
1:03 PM on Saturday, Oct. 15, 2009. Local time in New York, 1:03 AM on Saturday, Oct. 15, 2009
]

Time difference with UK

4.5 hrs.

[Local time in Delhi,
10:50 AM on Saturday, Oct. 15, 2009. Local time in London,
6:20 AM on Saturday, Oct. 15, 2009
]

7 hrs.

[Local time in Beijing, 1:20 PM on Saturday, Oct. 15, 2009. Local time in London, 6:20 AM on Saturday, Oct. 15, 2009]

1 hr

[Local time in Israel,
7:20 AM on Saturday, Oct. 15, 2009. Local time in London, 6:20 AM on Saturday, Oct. 15, 2009
]

7 hrs.

[Local time in Philippines, 1:20 PM on Saturday, Oct. 15, 2009. Local time in London, 6:20 AM on Saturday, Oct. 15, 2009 ]

     

Source: Wikipedia and official govt. websites.


 

China and the Legal Process Outsourcing Industry: - From electronics, manufacturing, PCB, Operating Systems, 3-G to Hardware Chinese goods are everywhere in market. From Olympics in 2008, 60th birth anniversary in 2009 to the upcoming Worlds' fair (Shanghai) in 2010, china had always and will always surprise the word with clear competency indications. The Chinese influence is set to grow in the years to come. Opportunities of outsourcing to China are enormous keeping in mind the fast economic growth. The Dragon has also diluted its rudimentary communist policies and is helping the Pvt. sector to grow. Since 2005, several IT and ITES services are duty free in China. China based TCL, the largest TV manufacturer backed by the Govt. has shown aggressive acquisition steps. Since 2000, against the populist advocacy, China has taken some strong steps to introduce English as a language. The Chinese leadership now realizes that English has a vital role to play in nations' modernization and development.

    Let it be as it may, imparting English education is one thing and piercing the civil law mentality and instilling Common law jurisprudence is pole apart. China has a long way to go before it becomes an actual threat to other strategic Legal Process Outsourcing Countries.

Israel and the Legal Process Outsourcing Industry: - Israel started to appear on the IT outsourcing map in 2005, when a survey included it in the list of top-20 location for outsourcing. Israel has a unique culture that is influenced by its inhabitants most of whom are Expats or have American parents. Slowly and gradually Israel is picking up as a LPO location. However at present it doesnot gives a tough competition because of the following factors- Instability, influence of German Civil law system and high manpower and other costs. It is neither a location nor cost rival for places like India and Philippines.

Philippines and the Legal Outsourcing Industry: - Philippines is ranked as Asia's second biggest outsourcing destination after India. Advantages like cheaper labor, lower cost of living, and large English speaking educated communities, are the exclusive advantages in Legal Outsourcing to the Philippines. However, to the contrary, Philippines had been slow to attract awareness about itself as an accepted destination for offshore as well as Legal Process Outsourcing. The country though had the same opportunity India had in the last decade but sat around the sidelines and watched India acquiring hundreds of outsourcing opportunities. During the same period Philippines could not materialize much into its kitty. Even today, the penetration of the outsourcing sector in Philippines is said to be 2 to 3 years behind India. Lack of Marketing, Bad security perception, Tight labor market, poor telecommunication infrastructure and dramatic rise in office rental and labor cost are obstacles, Philippines needs to overcome if it desires to overtake India as the Outsourcing superpower.

India and the Legal Outsourcing Industry:- No prizes for guessing, India is the most popular Outsourcing location. Even the Legal Process outsourcing Industry is not an exception. More than 200 LPO's exults India's enormous potential to cater the offshore legal requirements. No other country is even a good competitor to India in the Legal Process Outsourcing Paradigm. But the challenges are stern. India to maintain its status needs to update its Infrastructure, update vocational education, control the real estate prices and control the rise in salary structure of outsourcing professionals. In a previous post some concerns was also raised about practices adopted by new LPO vendors and a need for their introspection.

4 comments:

Ken Wollins said...

This chart is a good resource if not a little bit misleading with the author's bias toward India. To be sure, India has a tremendous amount to offer. The LPO I represent has resources in India but the vast majority of the work we do originates in Israel. We do not source legal requirements there but research and review can be done effectively in a limited number of instances.

The matrix doesn't point out that the lawyers in Israel are US-born citizens (and some from Europe) who were admitted to the bar and have practiced law before making the move to Israel. The number of English speaking people in Israel is grossly understated - there are 250,000 Americans alone who live there. The population Israel-based LPOs draw from is not of Israelis, it's American lawyers who are living there.

I'm not sure it's fair to categorically dismiss the Philippines as a destination. Their legal system more closely mirrors America's, and they have done a great job training "bar equivalent" professionals.

Ken Wollins, Green Point Legal Services
www.gplegalservices.com

vakils to lpo said...

Thanks Ken for your valued interest in the article. Of course Philippines and Israel are the two best competitors and that is what precisely the article says. India however claims 75% of the legal work outsourced. I believe the near future is competitive for all the three.

Francis M. Egenias said...

There are more than 8 law schools in the Philippines!

http://en.wikipilipinas.org/index.php?title=List_of_Law_Schools_in_the_Philippines

And thanks to Ken for that comment on the Philippines

Frank F. Tian, Esq. said...

A few words on China seem in order. I wonder about or question the accuracy of the number of English speaking or English proficient population in China. Based upon the LPO training program that I have done in various locations in China, here are my two cents:
Chinese law and engineering students can be easily trained to do LPO work; the public and private supports are there; there are more engineering students in China; lots of college grads (some say 60%) cannot find suitable work; and last but not least the workforce mobility is stable compared with the other three.
Further, I would suggest that this is not a zero sum game between the four or even between the outsourcing countries such as United States or Great Briton. This is especially true for Israel and China in that the two could complement each other rather than competing against each other.
In addition, lots of big boys including Fortune 500s have operations in China that needs local LPO for the lack of a better word. This is a unique advantage over the other three.
Frank F. Tian, Esq.
http://bpo.top97.com

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