value chain perspective in legal outsourcing industry, by arun narasani
DESCRIPTION
Understanding value chain, challenges, and business models in the legal outsourcing industryTRANSCRIPT
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VALUE CHAIN PERSPECTIVE IN LEGAL OUTSOURCING INDUSTRY
By, Arun Narasani, Co-founder/CEO, Brain League IP Serviceswww.brainleague.com
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BRAIN LEAGUE
Boutique IP services and consulting firm
50+ patent engineers and attorneys Presence in US and India across four
offices Clients in US, Europe, and India 60+ partner law firms around the world Single point IP solutions
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AGENDA
Offshore outsourcing Value chain and human resources Challenges Emerging trends Example Considerations in choosing a partner
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OFFSHORE OUTSOURCING
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ONSHORE VS OFFSHORE
Regulatory framework Risk vs reward
Experience Incremental vs leap
Cost savings Control vs focus
Outside cousel Threat to bottomline vs margins
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ONSHORE VS OFFSHORE
In-house counsel Job security vs value addition
Capacity requirements Stable vs varying
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OPPORTUNITY – EXPORTS IN 2011 ($BN)
IT & Software BPO LPO0
100
200
300
400
500
600
700
4514
0.4
Global spendingIndia exports
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EMPLOYMENT OPPORTUNITY – 2011 (MN)
IT/BPO KPO0
0.5
1
1.5
2
2.5
3
Employment
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Intangible assets account for up to 80% of market value in 2010
Source: Ocean Tomo's Annual Study of Intangible Asset Market Value - 2010
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TRENDS LEADING TO OFFSHORING
Proliferation of patent applications worldwide Value of patent portfolios
Lack of resources locally to handle the increase in work
Exorbitant costs to do it all locally Cost of obtaining patent rights: USD 15,000 to
USD 30,000+ Difficulty in handling worldwide work
centrally for some MNCs Slowing economy
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SEGREGATION OF WORKNon – core portfolio- Relatively simple work,
and/or- Non-strategic
Core portfolio- Requires higher skill set,
and/or- Strategic in nature
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Non – core work- Repetitive, and/or- Transactional
Core work- Highly specialized, and/or- Strategic in nature/ involves
higher risk
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VALUE CHAIN IN OFFSHORED SERVICES
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Infrastructure
Software
IT Consulting
Software R&D
ITO
BPO
ERM HRM CRM
KPO
BusinessServices
LegalServices
Low
High
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© Brain League IP ServicesLow
High
Legal Support/ Staff augmentation
Document review and formatting, transcription,
paralegal services, etc.
Legal ResearchInformation gathering, Prior art
searches, litigation support, etc.
Analysispatent drafting,
Landscape analysis, contract drafting,
etc.
Basi
c
Apti
tude
Apti
tude +
Exp.
Hig
h A
pti
tude +
In
ter
Dis
c. E
xp.
Process
Peop
le
Delivery Quality CRM
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PATENT SERVICES
Disclosure Development
IP Research andAnalysis
ApplicationPreparation
Filing andProsecution
Portfolio Maintenance
Licensing &Commercializatio
n
Litigation
Innovation/ Idea Generation
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HUMAN RESOURCE SKILLS
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INVENTOR INTERACTION
Invention Disclosure
Inventor Interview
Novel elements summary
First Draft
Inventor Review
Second Draft
Final Review
Application forms preparation and Filing
Start to finish in about 3 to 4 weeks
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EXAMPLES
Computer Input Device
Search method
Robotic Arm
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KEY SKILLS
Communication Written and oral
Legal Region specific; case law updates
Technical Cutting edge technology
Project management Time critical
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CHALLENGES
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CHALLENGES – RESOURCES
Lack of ecosystem for IP in India Only about 10,000 applications were being filed in India in 2002 In 2011-12, the number stands at 37,000 applications; 80% from
foreign applicants
Lack of resources with inter-disciplinary skills Social structure and pressures Lack of experience with foreign systems
Attrition 10 to 25% attrition rate due to economic growth and opportunities Attrition higher in lower segments of value Competition with other industries; captive units that pay higher
salaries; obsession with IT job as a status symbol
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CHALLENGES – MARKETING
Quality Basic skills Inter-disciplinary education/understanding Consistency
Credibility Prior data theft cases
Director of a business process outsourcing (BPO) unit for his alleged involvement in stealing medical history data in 2011
Employee of a mobile operator BPO shares data outside company in 2010 Lack of a credible IP environment
Cost savings Diminishing labor arbitrage opportunity
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EMERGING TRENDS
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CAPTURING VALUE
Expertise
Process
Delivery
Organization
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EXPERTISE
Higher up in value chain Ex: litigation
Domain expertise Ex: telecom
Niche services Ex: patents
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PROCESS INTEGRATION
Enable self-service Automation Increase efficiency
Transparency/ confidentiality/ security
Increase interaction and engagement; value addition
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DELIVERY
People
Mode
Onsite
Onshore Offshore
Online Offline
+
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ORGANIZATION
Structure
Incentives
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EXAMPLE
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US Office US
India
EP
JP CA AU
HK
CN
IN
US
CN/IN Office
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LEADING NICHE MOBILE PHONE COMPANY
Problem Conceptualization in US; manufacturing in China;
Design and R&D in India Distributed IP processes; multiple law firms Lack of internal resources and focus on IP
Solution Single point IP management solution Centralized docketing and reporting Increase efficiency in terms of manpower and costs
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IP SERVICES
IP Generation &
Identification
IP Protection &
Management
IP Risk Mitigation &
Commercialization
Policy and process setup
Strategy services
Training
Disclosure development
Application drafting
Filing and prosecutionPortfolio maintenancePortfolio review and analysis
Prior art search
Agreements
FTO/ Landscape/ Infringement/ Validity Research & Analysis
Open source analysisLicense Agreements
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CHOOSING AN OFFSHORE PARTNER
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CAPABILITIES
Team
Track record
References
Pilot/Test cases
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SKILLS AND PRACTICE
Understanding of foreign legal systems People trained in foreign legal systems
Language skills
Hiring and training practices Inter-disciplinary Continuous learning
HR practices to retain talent Organization structure Incentives to retain
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PROCESS AND INFRASTRUCTURE
Process and Technology infrastructure Defined and Repeatable processes Metrics/SLAs Automation
Security/confidentiality measures Physical, Technology & legal
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QUALITY
Consistency
Multi-step quality check
Multi-layer?
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SUMMARY AND Q&A
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