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Legal Outsourcing is the transfer of legal support function of the Company (the local support or a separate project) to another entity, specializing in the field of law.
The main source of cost savings with the help of outsourcing is the increase of efficiency of the enterprise as a whole and the emergence of the possibility of release the appropriate institutional, financial and human resources to develop new areas, or concentrate on existing requiring attention.
So, it is very easy to trace a number of advantages of legal outsourcing:
1. The level of qualification.
Typically, an in-house counsel may not be equally educated and experienced in different areas of law, whereas a law company will usually have developed its legal staff who have experience in all possible areas legal expertise;
2. Administrative costs.
The management of a company has to establish the correct methods of operation of their in-house counsel and fit him into the internal organizational structure of the company. Whereas a law company has a longstanding practice and a well established set of processes to service various types of businesses;
3. The organization and maintenance of the workplace.
Office equipment, software (regular updates), technical maintenance, office furniture, office supplies, rent of a particular business area ... All of this is necessary to create a working environment for an in-house counsel, which requires precious time and money of the company. Whereas a law company will, as a rule, possess its own office and the aforementioned costs will be borne the company itself;
4. The cost of education.
The team of experienced and professional lawyers in a law company do not need to continuously improve the level of their skills and knowledge at the expense of the employer since there is a continuous and active internal exchange of experience between various types of lawyers, whose training and learning practices do not affect the client;
5. The human factor.
The whole team of lawyers in a law company will never simultaneously resign, or not work because of a maternity leave, sick leave or an annual leave, as often happens with in-house counsels. In a law company one lawyer can easily substitute another one when it is deemed necessary so that the client does not have to suffer;
6. Change the lawyer.
If the management of an organization wants, for whatever reason, to change their in-house counsel, they would have to find a new lawyer, which will require certain amount of time and resources. Law firms in this regard are very loyal to their customers and are ready upon a reasonable request to replace the lawyer that services this particular company with another one;
7. Mandatory deductions and taxes associated with the payment of a in house counsel.
Having an in house counsel with a monthly salary of 300,000 tenge (that is an average salary of a more or less qualified lawyer) the employer (business owner) would have to pay a monthly social and tax payments, which will constitute 84,834 tenge, that is about 550 USD. Annually this figure will be about 1,018,008 tenge, that is about 6600 USD;
8. Termination of the contract.
For compulsory termination of the contract with an unwanted an in-house counsel there have to be very sound reasons and at least a 1 month notice period before the intended date of dismissal. In order to terminate the contract with a law firm there should only be a 5 day notice period before the intended date of termination.
See also on the subject all the: Practices
For more information, please contact: + 7 (727) 311 07 57, + 7 (727) 311 15 37
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