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PIVOTAL PROVIDER MODEL
Large professional services firms already have offshore relationships (primarily in India), and the tier-1 offshore firms are moving up the value chain to compete directly with these full-service firms (primarily through acquisition of regional and vertical market-focused professional services firms). Firms without an offshore relationship are already at a significant competitive disadvantage.
Accelerated Demand for Offshore Services
The interest in offshore providers runs high. The primary reasons are high levels of satisfaction with offshore services and low costs. Existing offshore service users will broaden their offshoreable activities, including strategic administrative and financial activities.
With the accelerated demand for offshore services, offshore budgets are expected to increase at a much higher rate in the near future. Forrester Research estimates that offshore budgets will more than triple at large firms, and grow up to 10 times at mid-size firms in the next three years.
Opportunities abound with a ‘Pivotal Provider'
Selecting and managing a reliable offshore service provider is not easy. Thus, new users of offshore outsourcing services will seek an engagement approach that mitigates risk.
A strategic move is seeking, what Forrester calls, a 'pivotal provider'. Here, a services company establishes links and partnerships with the offshore company and it plays an intermediary for the client. This approach is based on the on site / offshore concept. The pivotal provider is thus responsible for the end result.
Pivotal Provider in Legal Process Outsourcing:
With the increasing specialisation of the legal practice and the need to concentrate on core and profitable activities/projects, law firms, government agencies and industries and businesses across various fields look to gain domain expertise through an engagement process.
The Pivotal Provider employs a unique business model, which maintains a domestic resource pool to ensure seamless, easy to utilize project management, supported by deeply knowledgeable, highly experienced legal resources based in India and other low cost countries. The clients benefit by receiving the ease of use of local resources and interface points, while capturing the cost benefits of offshore outsourcing.
Strategic Alliances are formed with the top Legal Outsourcing Providers (LPOs) or suppliers of legal services (Third Party Vendors) from India, Malaysia, Philippines, Sri Lanka etc.