This past Friday, The Lawyer broke the story of the largest outsourcing deal for legal support services to date with UK 20 firm CMS Camerons. While the Camerons deal is more focused on the legal support services than traditional LPO services, the deal is significant for two reasons.
The first notable aspect is the sheer size and duration of the arrangement. The details reported by The Lawyer state the contract size to be £600 million for the duration of 10 years. The scope of the outsourcing arrangement includes nearly all legal support services for the firm including “IT, HR, finance, business development, communications, knowledge management, facilities management and administration services.” It’s also reported that close to 200 current Camerons personnel will be transferred to Integreon. While Osborne Clarke made headlines with a similar deal with Integreon in early 2009, the Camerons deal is a “whole other kettle of fish” according to persons knowledgeable of the matter.
The second significant aspect of the Camerons deal is that it illustrates that when an onshore arrangement helps to clarify the outsourcing decision. When orgaizations remove the offshore component (including ethical and jurisdictional issues), firms are able to see more clearly what they are proficient in performing and what, in fact, is better performed by a third-party. Once these determinations are made, the on/offshore component is simply another step in the solution development process.
For more details on the release please see the following news round-up: