According to T.V. Mohandas Pai, director and head of Human Resources at Infosys, the company is looking at Knowledge Process Outsourcing (KPO) and Legal Process Outsourcing (LPO) as new areas of business opportunity, as law firms as well as corporates, mainly in the United States, have begun outsourcing of legal documentation work to India. Mr. Pai added that they estimate the current market size of LPO segment at $ 200 million and expect it to rise to $ 2 billion in four years' time.
Apart from labour cost arbitrage, IT is also playing a significant role in outsourcing processes and companies are increasingly focusing on leveraging new technologies in generating efficiencies in routine tasks. We believe Infy's proven capability in technology space would help it in leveraging a variety of tools such as automated document production and workflow tools in their legal documentation work. However, the market size is fragmented with thousands of law firms (small and big) in the US and Infy's strategy to tap key clients and ability to bag big deals would be a key factor in achieving success in this new initiative.
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