Post the global recession, the recurring word within the mutating world of the larger legal process outsourcers has been ‘consolidation’. Strategic realignment has seen an upsurge in the drive to foster relationships between bigger more established LPOs and, where possible, to provide profitable exits for PE investors.
A new report from ValueNotes, a business research company, gives a summary of the changing face of the industry following the recession.
The report illustrates the extent of the slowdown in the market. In 2007, revenue growth was over 40% a year for legal process outsourcers. By 2009, it had dropped to 16%. Unfortunately, 2010 will not see much improvement in compound annual growth rates (CAGR). ValueNotes predicts only a slight rise to 19% ($440m). However, longer-term expectations are more optimistic, with CAGR predicted to rise by 26% by 2014.
LEGAL PROCESS OUTSOURCING
Post the global recession, the recurring word within the mutating world of the larger legal process outsourcers has been ‘consolidation’. Strategic realignment has seen an upsurge in the drive to foster relationships between bigger more established LPOs and, where possible, to provide profitable exits for PE investors.
A new report from ValueNotes, a business research company, gives a summary of the changing face of the industry following the recession.
The report illustrates the extent of the slowdown in the market. In 2007, revenue growth was over 40% a year for legal process outsourcers. By 2009, it had dropped to 16%. Unfortunately, 2010 will not see much improvement in compound annual growth rates (CAGR). ValueNotes predicts only a slight rise to 19% ($440m). However, longer-term expectations are more optimistic, with CAGR predicted to rise by 26% by 2014.