Offshore Outsourcing: Country Selection - International Marketing

Offshore Outsourcing: Country Selection

Offshore outsourcing is one of the types of outsourcing that involves the transfer of non-critical business processes to companies located in geographical distance. In other words, this is a mutually beneficial cooperation of companies, in which the physical location of the offices of each of them does not matter. The most significant in this case is the savings due to different levels of pay.

One of the main tasks, on which the success of the planned enterprise depends, is the choice of the country in which outsourcing companies will be located.

Consider what was said with the example of Lumen Legal (in the past Contract Counsel).

Contract The Counsel, which Galbensky created in 1993, was engaged in the selection of lawyers to work on a contract basis. By the end of 2003, the company's revenues increased from 200 thousand to 6.5 million dollars. Contract The Counsel employed thousands of lawyers a year. Then, the growth rate of incomes began to decline gradually. Despite the significant growth of the legal services market in the US, the increase in incomes was only 8%. To change the situation, the company needed to expand its client base in the West of the USA - in Boston, New York and Washington. This would also mean accepting a call from competitors - already long-standing players in these markets.

An attractive feature of Contract Counsel was the low prices for services. Clients addressed the company, carrying out major mergers or acquisitions, other transactions, control over documents during which would require a large number of staff. Such services cost customers 2 times cheaper than when working with legal offices. Galbenski was going to continue to use this strategy, expanding his activities to other cities, but did not know if she would provide the company with the growth in profits that he expected. Then Galbensky began to think about outsourcing the workforce from India, following the example of General Electric , Microsoft and Cisco, who saved large amounts by placing call centers and data centers in this country. According to Galbensky, American lawyers and their Indian counterparts could coordinate their actions over the network, and the time difference would extend the working day.

Of course, the quality of the work of Indian employees was questionable, just as cultural and linguistic differences could give rise to difficulties. Use of offshore workers was a great risk, but the savings could be significant. Before the leadership, a serious question became: "Can the Contract Counsel afford such an international extension and will it be justified?"

Decision. The first step was the study of the legal services market in Asian countries where the population has a relatively high level of English language proficiency and identifying the best companies providing such services. Having compiled a list of such companies, the directors of Contract Counsel decided to meet personally with the managers of these companies.

A three-month business trip to India, the United Arab Emirates (Dubai) and Sri Lanka was planned. After visiting several cities in these countries, Galbensky personally interviewed the managers of companies and studied the order of their employees. India was the most attractive region. There are more than 500 law schools in this country, and approximately 200,000 lawyers are issued each year. Even more pleasantly surprised representatives of Contract Counsel is that thanks to the Internet lawyers in India had access to the same research tools as in the US. Yes, the disadvantage was the average level of English, but it was compensated by a lot of motivation and orientation to accomplish the tasks set. In addition, the Hindus were ready to solve problems that employees of the US office looked down on (for example, detailed study and coding of thousands of sample documents).

In other words, such employees would be fine to perform a fairly routine paper work, which the company had a lot. During a second visit to India, Galbensky signed two contracts with two companies providing legal services: QuisLex in Hyderabad and Manthan Services, in Bangalore. When calculating, it turned out that using the work of the lawyers of these companies and their assistants would help reduce the cost of checking documents to $ 50 per hour (before that it was $ 75). Also, the database was used for outsourcing, which was used to store information about thousands of customers of the company. Total Galbinsky spent a year and 250 thousand dollars to prepare his new global company.

The expenses justified themselves. Galbinsky renamed his company in Lumen Legal, thereby emphasizing the new nature of the activity (originally the name of the brand was conceived as Offshore Legal Services - offshore legal services).

The company is currently sponsoring an outsourcing summit in India and is planning to develop in Israel.

The modern regional presence map of Lumen Legal includes: Atlanta, GA; Boston, MA; Charlotte, NC; Chicago, IL; Columbus, OH; Edison, NJ; Houston, TX; Indianapolis, IN; Kansas City , KS; Los Angeles , CA; Miami, EL; Minneapolis, MN; Nashville, TN; New York , NY; Philadelphia, PA; Royal Oak , Ml; San Francisco , CA; Washington, DC; Chennai, India; Gurgaon, India .

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