"You need lawyers in good times and in bad"

Rohan Dalal, MD, Mindcrest on the challenges that the LPO industry is facing

1) Despite many Indian sectors facing a set-back due to the global recession, Indian LPO sector is still doing good business. Your comments.

As the saying goes - You need lawyers in good times and in bad. In a financial crisis like this one, large corporations and firms will require legal services in the areas of litigation, mergers and acquisitions, bankruptcy proceedings and general corporate legal work. Legal budgets will naturally be stretched and LPO companies with proven track records will be viewed as an efficient, cost-effective option.

At Mindcrest, we foresee growth in our litigation support business, which will be a natural result of the anticipated shareholder lawsuits. In addition, we expect to see an increase in bankruptcy work, legal compliance, and, in the long-term, mergers and acquisitions.

2) What are the reasons for the Indian LPO segment reportedly seeing a steady rise in business in the current downmarket?

The Indian LPO industry is a natural choice to alleviate the pressures and maximise the value realised per dollar spent. Moreover, the best LPO companies are well-positioned to provide a variety of solutions, whether in the form of short-term labour intensive assistance to address a critical time-sensitive need or a long term strategic partnership to address broader organisational challenges. 

Specifically, we expect to see a rise in business in the area of litigation support, which will be a natural result of the shareholder lawsuits stemming from the activities affecting the markets. In addition, we expect to see an increase in bankruptcy filings and eventually, mergers and acquisitions. Thus, we anticipate that other areas of increased interest will be providing support in bankruptcy proceedings and due diligence work related to resulting acquisitions. Those firms that can scale up to meet this demand stand to benefit.