In many parts of the world it has already been acknowledged that some legal work does not need to be done by senior lawyers in high-cost locations. This in turn has led to the introduction and growth of a market for legal process outsourcers (LPOs) based in lower cost locations. In China the legal process outsourcing market is just at the introductory stage. And there are two interesting factors that make this distinct to others markets.
Unique features
- Substantial location cost base differences within China itself
- Highly-qualified staff that are eager to relocate home to larger cities from Shanghai and Beijing in order to be closer to family
Haifeng Yang is a lawyer who is levering these particular Chinese market factors to establish the first legal process outsourcer in China.
At the cutting edge in the ancient capital of China: Silkroad Law Firm
Silkroad Law Firm, founded by Yang, is located in Xi’an, far from the more traditional business centres on the East Coast of China. Xi’an was one of the ancient capitals of China, the starting point of the Silk Road, and home to the Terracotta arm. Xi’an is now a growing city of 8 million. Importantly, it has a much lower cost of living than Beijing and Shanghai.
Keeping the above in mind Yang reasoned that he could create value if he could keep his client base in the major cities, but resource those matters from Xi’an with equally qualified attorneys.
These critical factors, combined with the fact that there is a lack of Chinese language services at LPOs in locations such as India, point to an opportunity to service Chinese law firms from within China. And these positive market indicators are also evident in the fact that since 2014 revenues at Silkroad Law firm have trebled, and look like they will double by the end of 2017.
Find out more
Find out more about Silkroad Law Firm in an absorbing piece written by Peter Davies, Senior Solutions Sales Specialist. Peter is a former private equity lawyer who now handles the Legal Technology and Solutions business for Thomson Reuters in North Asia. The complete blog can be found here.
