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Posts Tagged ‘legal outsourcing’

Outsource to Contract Lawyer to Deal with Layoffs

February 11th, 2010

By Mark Schecter | No Comments »

If you follow the local and national news, you are aware of the US economy and rising unemployment rate. It’s difficult to ignore the dismal news as the topic is frequently covered in all areas of the media, from morning and afternoon talk shows, to radio and newspaper ads.

As a business owner, you constantly struggle with the thought of cutting back your costs and budget, and the possibility of having to lay off employees and add to the rising unemployment rate. But the fact remains, you are responsible for finding ways to keep your company viable while you deal with the current crisis. That means in many companies, layoffs are inevitable.

While you work hard to cut your budget and control your costs to deal with the business losses you’ve experienced, you may find you’re forced to downsize the number of employees in your company.

With that said, it’s not always simple to determine who will be laid off. While you may be able to fade out certain positions, you’ll find there are others you cannot afford to dissolve.

For instance, it may not be a good idea to completely fade out the legal services your in-house attorney provides to protect your company. In fact, it may be an absolute wrong decision as claims of wrongful termination and other employment disputes tend to increase when layoffs occur.

So, what can you do?

You can outsource to a local contract attorney many of the same legal services an in-house attorney offers. Does this mean you must completely dissolve your company’s legal department? No. But it does mean a contract lawyer can prevent you from having to hire more salaried in-house attorneys and support staff.

Although much of the news we hear focus on the loss of jobs once held by middle Americans, there are other industries that are often overlooked. The legal industry has been hard hit by the economy. It was already heavily saturated and very competitive, and the economy has only exacerbated that reality.

Now, instead of hiring more in-house salaried lawyers, many corporations hire contract attorneys to provide legal services they need. In many instances, a lawyer working on a contract basis has the same (and sometimes more) education and work experience as the typical in-house attorney.

Has your company considered outsourcing to fill in-house attorney positions following layoffs?

http://www.schecterlaw.com/litigationblog/legal-services-local-corporate-attorneys-offer

Legal Services Local Corporate Attorneys Offer

February 1st, 2010

By Mark Schecter | No Comments »

Corporate outsourcing occurs when a corporation contracts with another individual or entity to provide services or products. For several years, the rate of corporate outsourcing has skyrocketed in technology-related sectors as companies rely on outside contractors to create, build and manage all kinds of technology.

Today, outsourcing continues to evolve and is gaining momentum as corporations increasingly rely on legal outsourcing to back up their overworked and under-staffed legal departments. More corporations are realizing that a local corporate attorney can negotiate and structure many of the same deals and settlements as an in-house attorney, and provide effective legal support at multiple levels.

Despite the obvious popularity, questions remain as to the type of legal work that can be outsourced to a local corporate attorney. Here is a list of some legal services that a corporation can outsource:

1. Legal Document Review. If your company has ever been involved in any type of litigation, then you know the process can require the review of stacks of documents. A local corporate attorney can review your legal documents in order to assess their relevance, and determine what actions (if any) are required in relation to the legal matter.

2. Legal Research. Researching a legal topic can require a significant amount of time to complete and may involve researching various sources of law in multiple jurisdictions to obtain the information you are looking for. It requires a considerable amount of time to thoroughly search multiple databases, law books, and on/offline resources. Legal research is a service that is often outsourced to a local corporate attorney.

3. Contract Negotiations and Drafting. Whether you are offering services or products, you will find that written contracts are essential to doing business. But, all contracts are not created equal. In order to be considered valid, there are essential clauses every Florida contract must have. Corporate attorneys spend a significant amount of time negotiating, drafting and enforcing ironclad legal contracts, and can make sure your contract passes muster and will protect your company.

4. Employment Disputes. Not every employee relationship will end the same way that it started. There will be times disputes will arise and they can get costly. In many instances, these types of disputes could have been prevented if a legally binding contract existed expressing the terms and obligations of all parties. A local contract attorney can prepare binding employment contracts and non-disclosure agreements that will outline the obligations and responsibilities of both the corporation and employee.

While there may be a need for your corporation to employ in-house attorneys, there may be times you can use the help of a local lawyer on a contractual basis. You can outsource the legal servic

es listed above and several other legal services to a local corporate attorney.

Florida Corporations Outsourcing to Small Firms?

January 4th, 2010

By Mark Schecter | No Comments »

Over the past couple of years, the legal industry has suffered its share from the ailing economy, and is now facing the repercussions of massive layoffs, under-staffing and budget cuts. The same is true for large and small corporations in Florida as they are also feeling the economic crunch, and are forced to cut back or totally dissolve their legal departments.

As we end 2009 and enter a new year, the legal industry is experiencing ongoing changes and shifts in thinking as new trends in outsourcing begin to surface. Many corporations and legal departments are outsourcing various legal services to solo and small firm practitioners within the boundaries of the United States.

Fulbright Study: Corporate Attorneys are Outsourcing

In an earlier post, we discussed the 2009 Fulbright Study in which corporate attorneys in many countries were surveyed on topics affecting legal departments, and the manner in which they provide legal services.

Amongst other things, the survey results revealed that many of the corporate attorneys are relying on outside counsel, often solo and small firm practitioners, to provide the same legal services in-house attorneys would generally handle.

Approximately 76% of the corporate attorneys indicate their companies outsource certain tasks to outside counsel. And, when asked to rate their satisfaction with the outside counsel’s ability to meet their needs, nearly 90% indicate they are satisfied with the services provided by outside counsel.

Reasons Corporations Outsource to Small Firm Practitioners

Outsourcing is an attractive option for corporations that are trying to reduce their costs, control their spending, and continue to stay on top of their massive workloads. There are several reasons corporations turn to outsourcing. I will address a couple of the reasons below:

  • Small firm practitioners tend to have lower overhead costs and can afford to offer their services at competitive rates; while large firms are often forced to set their hourly rates according to their monthly costs, expenses and total overhead.
  • In many instances, solo and small firm practitioners provide higher quality work product and faster turnaround times as they tend to juggle fewer legal matters than typical large firms.
  • A corporation’s legal department can more accurately estimate their budgets and control legal spending when they outsource to small firm practitioners that offer flat rate and other alternative fee arrangements.

Obviously, the above list of reasons corporations choose to outsource is not an exhaustive list. You can expect more discussions on outsourcing and small firm practitioners in the weeks to come.

In the meantime, I’d like to hear from you.

Are you a corporation considering (or currently) outsourcing to a solo or small firm practitioner, or are you a practitioner providing legal services to large corporations? How is it working for your corporation or small firm?