With 70% of law firms outsourcing a portion of their back office and 45% considering outsourcing some middle office functions, it is clear that outsourcing is on the rise for law firms. This is because, when executed correctly, it can be an excellent management tool to increase service levels, broaden talent and manage costs.
There are still some firms which are reluctant to embrace the financial and operational benefits of outsourcing; these firms may have anecdotal evidence of an outsourcing engagement gone ‘wrong’ or executed incorrectly. These anecdotes should not be dismissed and every firm considering outsourcing needs to carefully weigh the needs of their firm culture to the demands of a rapidly changing marketplace. However, when outsourcing situations are structured properly–attuned to your firm’s needs with the “right” vendor–it creates a win-win-win situation for the firm, the vendor and most importantly, the employees.
Outsourcing the wrong way
If your firm has an in-house operation and are considering outsourcing your operation, here is what you shouldn’t do:
- Have vendors come onsite to observe your in-house operation in order to put together a proposal
- Have an outsourcing vendor gather your current costs
- Only get a proposal from one (1) vendor
- Agree to the majority of the terms in the vendor contract such as severance and non-solicitation.
- Fail to address any “bridging” options to keep your current employees’ whole
- Fail to include performance standards, monthly scorecards or any type of service level agreements.
- Educate your in-house employees on the beneficial aspect of working in the outsourcing industry too early.
Curious to discover ways your firm can outsource the right way? Click here to read the full article originally published in Law Journal Newsletters Accounting & Financial Management for Law Firms.