Tuesday, September 30, 2008
America Tells Wall Street To Go Shove It
The corporate and legal elite are shipping our jobs to India and they want us to flip the bill for this economic bailout monstrosity?
Geetanjali Jhala writing for DNA India asserts that in the midst of the sub-prime meltdown in the US, the legal service industry in India is quietly making an extra buck.
"But in the midst of this chaos, the legal service industry is quietly making an extra buck. The sub-prime meltdown in the US, and the rise in litigation, has increased the amount of legal work being outsourced to India. Revenues in the last six months have gone up more than 100 per cent, according to heads of legal process outsourcing companies in India.
Because of rising costs, “companies are actively looking outsource to India, where legal work costs one-tenth of what lawyers charge in the US,” says Sirisha Gummaregula, COO of Quislex. If one company is satisfied with the results of a particular firm, word spreads. “Acceptance by the client and client-referrals have made a big difference to the sector,” she says. Added to that is the fact that with each passing year, legal costs go up at a rate of 5-6 per cent a year, says Alok Aggarwal, CEO of Evalueserve. Agrees Sanjay Kamlani of Pangea3: “Recession and the events leading up to it have created a lot of additional legal work for Indian firms.” This includes legal analytics, litigation, electronic discovery, due diligence work, risk assessments, research document drafting, bankruptcy, filing and processing.
“With Lehman Brothers, we are looking forward to more bankruptcy and M&A related work coming our way as the recession sets in. “We’re definitely going to be working with companies like Lehman, Merrill and Morgan,” says Anthony Alex, VP, legal services at Pangea3."