In the last two decades, outsourcing has been nothing but a revolution for businesses worldwide, which holds true even during the pandemic. It would be more accurate to say – ESPECIALLY in the event of a pandemic – when considering the impacts of COVID-19.
Professional LPO companies have helped law firms to continue offering services even in unpredictable times. This strategy also implies that these firms hire the best staff for their projects while concentrating on other essential elements of their business. As a result, small and medium law firms have been able to stay afloat.
It’s wonderful that you can now work with an LPO company to enhance your law firm’s efficiency without feeling overwhelmed. Outsourcing allows you to get your law business up and running at a minimal cost while obtaining the high-quality results you want.
However, choosing a suitable LPO firm is quite tricky. When looking for a legal outsourcing partner, it’s crucial to conduct due diligence or background checks. If you don’t, your company may suffer from inefficiencies caused by a failed collaboration.
Therefore, let’s now look at these red flags you must be aware of to safeguard your company from an incompetent outsourcing partner.
1. Lack of Transparency
Reputable providers establish their companies on trust, and transparency is a fundamental element of that. Because you trust them, you would provide them with every detail about your company when looking for a possible partner. Why shouldn’t they, then?
Both sides must be transparent to each other for a partnership to succeed. A reputable LPO firm should keep you updated on its strategy, efforts, and results they have achieved in the past. Any important information should be disclosed to you. It’s a significant red flag if they don’t provide a reference of how they have helped their previous clients. You want to see if their clients are satisfied, don’t you?
2. Poor Financial Health
The most critical consideration when selecting an outsourcing partner is cost. But keep in mind that inexpensive isn’t always the best. So do your part in conducting thorough research before choosing an LPO partner.
Partnering with a firm struggling to fight financial difficulties demonstrates that it is unable to manage its resources, and working with one will only become a liability for your organization.
You must check how financially strong is the company with which you are about to close a deal. Ask for their balance sheet, liabilities, current, non-current assets, and other financial statements and examine them all. Knowing the company’s financial position will help you decide whether or not it’s a good fit for a partnership.
3. Incompatible Company Culture
Your company culture defines your workplace and how things are handled in your company. It would not get you much if the LPO you’re considering handles issues, responsibilities, and clients differently.
If you’re looking for a partner who will provide complete support and maintain high standards, but the outsourcing firm doesn’t stick to contractual terms and conditions, your partnership will fail. Moreover, communication issues can arise as a result of a company culture that is incompatible. Therefore, while looking for an LPO to partner with, make sure they share your goals and have a similar company culture.
4. A High Rate of Attrition
A high attrition rate in an LPO company indicates instability; it might be tough to work with such a firm. It also suggests that they have inadequate policies, bad management, and internal conflicts. This is a major warning sign that you should be aware of.
Internal concerns can have a negative impact on work quality and overall business performance. To ensure that your operations are not disrupted, find a reliable outsourcing partner.
5. False Claims for Service Delivery
Some service providers will try to sell you services that they don’t actually provide. You might be surprised to read that they can’t even explain the services they’re offering. If the LPO firm offers you specialized services, inquire about how they will benefit your organization. If they are unable or unwilling to answer your query, you should reconsider hiring them.
Therefore, when hiring an LPO, make sure they’re actually providing what they say and are good at because some organizations make such claims to boost their stock so they can get more clients.
6. Inappropriate Information on Website
It is important to note that websites play a key role in closing clients in most cases; because a website is usually seen as a reflection of a company. Therefore, to save yourself from falling into the trap of a not-so-beneficial outsourcing partnership, you must check their website and confirm its genuineness.
Check the service provider’s website and look for transparent information like the company’s ‘Contact Us’ page, information on directors and company background, pictures & videos of their building and employees, etc.
Hiring an LPO company for your law firm isn’t as simple as signing a contract and letting the provider handle everything. It’s also about trust and confidence. While these red-flag indicators do not necessarily indicate that they are rogue outsourcing suppliers, they should prompt you to ask additional questions and be extra cautious when outsourcing your valuable project.
If you’ve done your homework on many vendors you’re considering for your company, you’ve probably realized that they all have one thing in common: authenticity. But, apart from authenticity, look for a partner who ensures providing quality legal support services and has previous experience working for businesses in your industry. Considering all that, you would be able to find the right LPO partner for your law firm.