The past few years have seen the business ecosystem and landscape undergo a rapid transformation. The rise of enterprising start-ups and their way of doing business has rejigged the nature of other industries and businesses.
While outsourcing areas of the business like- cybersecurity, data management, and hiring were fairly accepted and acknowledged, the latest entrant to the list has been Legal Processes. Historically businesses used to work with in-house legal teams that were on the payroll.
With new start-ups and entrepreneurs, companies and their VCs are more interested in cost-cutting and outsourcing different areas of operations. This has made many start-ups and small businesses reach out to law firms that accept legal and financial outsourcing.
In this article, we are going to discuss a question that most business owners have already thought about- should you outsource your legal work? Specifically, we look to discuss some of the major benefits of the same. If you are a business contemplating this, then you should read this article till the end.
The Importance of Legal Services for Business Organizations
Compliances. Taxation. Permits. Incorporation. Employee Agreements, M&As…
The list of legal processes that a business organization has to engage with on an everyday basis is almost insane. If you ask the CEO or Founder to do each and every legal function, they will not be left with a spare second to look at what is happening with their business.
Businesses need legal assistance whether they like it or not. If they want their CEOs, CFOs, and other executives to focus on product development, sales and revenues, you need someone to take care of the legal part. There are two major options in front of any business-
- Hire an in-house team of legal experts and professionals and give them responsibility for all legal processes and functions for the business.
- Work with an expert law firm in DIFC and outsource your company’s legal work and processes to them.
The thing is that you need to choose one or the other. If you choose to do everything on your own, you are going to miss deadlines, licenses, and land your business in a lot of trouble.
Benefits of Outsourcing your Businesses’ Legal Work and Processes
In this section, we are going to list down some of the major benefits of outsourcing your company’s legal work and processes-
- Incremental Cost Savings-
Most studies and experts have concluded that when you outsource legal work and processes, you stand to save 50% of the costs as compared to having in-house legal teams and professionals. When you add the same over a financial year, you can see the volume of money you will end up saving. Imagine how you could reinvest this amount in some other vertical.
- Better Turnaround Times-
When you are outsourcing your legal work to a firm, you are the client. This means that you can pressurize them into doing things according to your timeline. Can you exert the same type of pressure on your in-house teams? The answer is probably not. This means that you are meeting deadlines every single time without missing any. This is advantageous for your business.
- Access to the Best Legal Talent-
When you hire for your in-house legal team, you can only do so much as far as legal talent is concerned. Even if they are not competent as you had hoped them to be, you will not be able to remove them. When you outsource your legal work, you can try the best talent out there. Law firms work with legal geniuses and you can request the best ones for your account.
- Increased Flexibility of working-
Almost every business knows that there are times when there are tons of legal compliances that come up all of a sudden. They also know that there are months when the in-house legal team is playing ping pong and doing nothing else. By outsourcing your legal requirements, you are free to follow a flexible model of accessing legal experts for your work when you require it.
The Bottom Line
The important thing to note is that it is not just start-ups that are doing this. Many bigger businesses too have found favor in this model. if you want to reduce your costs, improve delivery and work with skilled legal professionals, then you should definitely check this out. If you have any specific questions on legal outsourcing which you would like us to address, please let us know in the comments below.