Sunday, February 24, 2013

Global Legal Process Outsourcing market crosses US$ 1 billion in revenues in 2012

According to a study by LPO program, the global legal process outsourcing market has reached the $1 billion mark and is continuing its growth at an annual growth rate of 32 per cent. According to Global Outsourcing Association of Lawyers blog post on, the global spending on legal services is estimated to be around $250 billion. United States alone contributes about two-thirds ($167 billion) in terms of legal services. For law firms and organizations outsourcing of legal services to India can be considered to be a lucrative option but it is not feasible to outsource every type of legal service, hence the market for legal services outsourcing stands at around $111.2 billion. Out of which India can only target only 3.6% ($4 billion) and in reality only 2% ($80 million) has been outsourced till now. This highlights the fact there is a relatively big untapped market available for the Indian LPO vendors and other global LPO vendors to exploit which also helped the industry to cross the billion-dollar mark in 2012. According to a Nasscom market intelligence report, the LPO segment is expected to touch $15 billion by 2015.

The Indian LPO space is dominated by pure play LPO vendors such as Pangea3, CPA Global, Unitedlex, Integreon, Intellevate and Evalueserve. In 2010, Pangea3 became part of Thomson Reuters, the world’s leading provider of intelligent information to legal and business professionals. In the initial days of Legal Process Outsourcing (LPO) to India most of the work used to be backend processing like transcription but the high end work like IP processes, legal research, pre-litigation documentation, document analysis, preparing software licensing agreements is presently being outsourced to India along with the low end work as the Indian LPO vendors have matured and have built the capabilities in terms of skills and hired talented lawyers. One of the important process for companies is the patent filing which is also being outsourced to India  which is known as Patent Process Outsourcing (PPO and the process has more than 900 professionals who are qualified and trained to provide patent related services at a cost of $2,500 compared to $8,000-$12,000 charged by U.S. firms. Currently, the entire Indian LPO sector only employs some 50,000 people, according to Sanjay Kamlani, the co-CEO of New York-based Pangea3.

India already has more than a million practicing lawyers, and another 70,000 new graduates are added every year as they pass out from various law colleges across India and these lawyers are educated in English medium, similarities between Indian Legal System and U.K., U.S., Canada, and parts of Europe, labour cost arbitrage, time zone advantage, experience in providing various types of outsourcing services, and the clear edge that Indian LPO vendors have in terms of cost, quality and turnaround time. Along with the pure play players Indian Outsourcing giants like TCS, Infosys, Wipro all offer LPO services and they work with very prominent US clients. Despite the hype in the past years the Indian LPO industry had been growing steadily but far slower than the other types of outsourcing which are Information technology, Business process, and Knowledge process.  Most of the time the high end work cannot be outsourced and the reliance on the low end work is not highly profitable and to increase the high end work Indian LPO vendors are also setting up onshore centers in United States and United Kingdom. According to ValueNotes, market intelligence and consulting firm the large pure play LPO players are financially strong and they can survive in the industry and grow but smaller pure play LPO players will struggle due to their inability to maintain consistent operating profits, resulting in rising debt levels. Overall Indian LPO vendors majorly the pure play vendors will dominate the Global Legal Process Outsourcing Market and will see steady growth in the next few years.

Table of various services provides by Legal Process Outsourcing Vendors
Low skilled quantitative tasks consist of:
High end qualitative tasks include:
  • Paralegal Services & Legal Coding
  • Corporate Secretarial Services
  • Legal Memo Development
  • Medical & Legal Transcription
  • Document Management
  • Litigation Support
  • Data entry
  • Immigration data analysis and working on labor relations

  • Intellectual Property Rights & IPR
  • Portfolio Management
  • Patent Search & Application drafting
  • TM and Copyright Registration
  • Legal Research/Opinion work
  • Document Review and Analysis
  • Intelligence Services
  • Contracting and Administration

Monday, February 18, 2013

Global Platform as a Service (PaaS) Market 2013 & forecast 2018 market growing

PaaS provides a cloud computing platform and a solution stack that allows developers to create applications and software and test them by utilizing tools and libraries from the cloud services provider. Compared to Software as a Service (SaaS) and Infrastructure as a Service (IaaS), PaaS market is small and slowly picking up and the reason being complexity in adaption and building a standardized PaaS platform from the scratch is very difficult for organizations. According to Markets and Markets, Global Platform-as-a-Service market is estimated to grow from $1.28 billion in 2013 to $6.94 billion in 2018 at a compound annual growth rate (CAGR) of 32.54% in this period. In terms of geographies, North America continues to be the biggest market for PaaS solutions. Worldwide platform as a service (PaaS) revenue is on pace to reach $1.2 billion in 2012, up from $900 million in 2011, according to Gartner, Inc. The market will experience consistent growth with worldwide PaaS revenue totaling 1.5 billion in 2013, and growing to $2.9 billion in 2016.

Along with the large players like Amazon, Google, IBM, etc., small players also emerged in this segment that made the market more competitive and vibrant with new products and services are being offered by the cloud services providers. The need for the businesses to develop new applications, tools and technologies at a low cost have increased the demand for the developers and also for PaaS offerings as most of the developers are looking to PaaS to develop and test new apps and software. Application Development and Maintenance PaaS (ADM PaaS), Business Process Management PaaS (BPM PaaS), Application PaaS (aPaaS), Integration PaaS (iPaaS) and Other PaaS are the segments categorized based on Applications.

According to Gartner, the largest segments within the PaaS market are cloud application platform services (aPaaS), accounting for 34.4 percent of total PaaS spending in 2012; cloud application life cycle management (ALM) services (almPaaS) at 12 percent; cloud BPM platform services (bpmPaaS) at 11.6 percent; and cloud integration services (iPaaS) at 11.4 percent. Gartner predicts that the potential spending in PaaS technologies is an average of $360 million per year from 2011 through 2016.  "The fundamental appeal of PaaS is the opportunity for ISVs (independent software vendors) and IT organizations to create new software solutions with minimal capital expense and without the hassle of provisioning and configuring the underlying infrastructure," said Yefim Natis, distinguished analyst at Gartner. "Too many SMBs (small or midsize businesses), in addition, PaaS offers the chance to take advantage of some state of the art enabling technologies, they otherwise could not afford. Finally, the popularity of SaaS also drives adoption of PaaS for customization, extension and integration of the cloud-based applications."

IDC expects 2013 will see an explosion in industry PaaS (public platform as a service) offerings as the market moves up the software stack and "horizontal" PaaS becomes commoditized by platforms built on open source-based infrastructure. In industry PaaS, cloud-based shared services environments are being tailored to the needs of a specific industry, while additional industry-focused solution developers are developing and deploying a range of industry-targeted value-added solutions and services on these platforms. Examples of emerging industry PaaS include: NYSE Capital Markets Community Platform in financial services; numerous health information exchanges in healthcare; and Johnson Controls' Panoptix App Marketplace in smart energy. (Source: IDC predictions 2013: competing on 3rd Platform)