The corporate structure consists of departments like marketing, human resource, finance, and IT. The various departments operate to ensure improved efficiency of overall business operations and increased productivity.

Setting up and maintaining a department in-house can be costly in terms of money and resources, as employees need to be recruited, paid, and provided with all necessary equipment and facilities. Businesses are thus more likely to outsource business operations like marketing and finance.

The legal department also plays an important role in the corporate structure and it is becoming common practice to outsource legal work as well. There are many advantages to this and these are the top reasons to outsource legal work.

1. Lower Costs

Running a business can be costly, from setting up a department with the required equipment and technology, hiring employees, and providing the department with facilities. Businesses are thus always looking for ways to lower costs while still ensuring the quantitative and qualitative value of the work does not drop.

One of the best ways to do this is by outsourcing certain business operations. Legal process outsourcing services come at different price points, depending on the volume of work undertaken by a law firm UK.

This makes it one of the best options for businesses looking to reduce operational and labour costs and increase revenue.

2. Expertise

A business may want to have the best contract disputes lawyers onboard but may be unable to afford it. If a business is expanding or relocating, for instance, they may require the services of real estate lawyers during the move. However, professional expertise does not come cheap and businesses may not be able to afford to the expertise they want.

By outsourcing their legal work, however, a business can access the expertise of professionals in various areas of legal services without having to hire them permanently. This is one of the top reasons any business should outsource their legal work.

3. Efficiency

A faster turnaround time and increased efficiency are two of the key benefits of outsourcing to legal management consulting firms. These firms tend to invest in training and technology so that teams can carry out their tasks in as short a time as possible.

This means that a business may find that outsourced intellectual property services, for instance, can complete a given task in a shorter time than an in-house legal department.

Outsourcing legal work can also increase the efficiency of in-house teams, as they can focus on core business functions instead of tasks that can easily be outsourced. This especially applies to small and medium sized businesses that do not have the capacity for a large workforce.

4. Scalability And Flexibility

Depending on the type of the business and the nature of the industry, a legal department may be an integral part of the business without being one that is always busy. A business may find that their legal team needs to be expanded during an acquisition but that the additions are not required after as the workflow will naturally drop.

This lack of flexibility, especially when it comes to scaling up and down, is one of the biggest disadvantages of an in-house legal department.

By outsourcing legal work, however, a business can have their team scaled up and down depending on their current needs without having to spend on recruitment and employee salaries and benefits.

Even if an organisation has a legal team, they can rely on the in-house legal team to oversee the main functions of the department but can opt for outsourcing services when the workload or projects increase.

5. Different Perspectives

Legal disputes and issues cannot be approached with the same attitude all the time. Out of the box thinking and considering alternative solutions can be found to be more beneficial in certain situations.

However, it is not easy for teams to have a different perspective on each legal process or dispute, especially with limited resources.

By outsourcing legal work, a business may find that this much-needed difference in perspective is possible as the legal professionals handling the project or business will bring different levels of expertise and experience to the table.

This can be extremely beneficial to the business as a different approach may give better results.

From scalability and flexibility to professional expertise and cost efficiency, there are several benefits to outsourcing legal work. For these reasons, any business should consider having a reputable law firm handling their legal work instead of relying solely on in-house team.

Published date - August 26, 2021