Outsourcing – The Underestimated Business Model in Conveyancing
Outsourcing is a business model that has shown its worth especially during the coronavirus pandemic, especially in conveyancing firms/departments where good quality work has been delivered by outsourced companies.
This article aims to dispel some of the myths surrounding outsourcing and why in today’s climate, where conveyancing is such an aggressive market to profit from, having an outsourced partner is very much an appreciated resource to have.
In the last decade there has been a significant shift in the formation and business structure of conveyancing firms as they quite rightly look at themselves as businesses first and foremost rather than just a law firm, which some may say was the mindset some decades ago. With this change a more aggressive legal industry has been created especially in the world of conveyancing. Needless to say, technology has played a massive role in this new formed vigour, but one should not overlook that a more subtle player comes in the form of the outsourced business model.
On the 29th November 2019, The Law Society published guidance on outsourcing, once thought uncommon in the legal field warped with all sorts of risks, is now described by The Law Society as an increasingly common aspect of legal service delivery. This article focuses on the challenges of outsourcing such as confidentiality, management, and risk. Indeed, this could be the reason why firms have not looked favourably towards the outsourced model in the first place.
However, now there is recognition from The Law Society that outsourcing is another tool for efficiency, firms can confidently look to create a law firm or even re-adjust their current business to embed outsourcing into their business plan creating efficient processes benefitting all parties in a transaction.
However, this type of model is not for everyone. The two main considerations firms need to look at before embarking on this journey is the confidence in third parties and releasing control. If firms are not prepared to do this then outsourcing is not a model for them. If firms have a futuristic view of where they see their business in the next three years, then the journey can begin.
One of the main benefits of outsourcing, is knowing that there are specialists who will be solely carrying out the outsourced tasks assigned to them and will not be distracted by other tasks common in a transaction. This will give you the peace of mind that your work is being dealt with in a timely fashion.
Another benefit is reduced costs overall. Outsourcing should not be seen as an expense, rather it is a small outgoing submerged with quality which reduces your overheads because outsourcing focuses on remote working and enables you to re-deploy staff into the more profitable aspects of the business. Better still, if an outsourced company offers a pro-rata service, then you will always be in control of your cashflow.
Outsourcing not surprisingly is a model some may snub their noses at, thinking it is an operation done overseas with unqualified or inexperienced staff. Firms would be mistaken if they consider this to be the norm as there are excellent UK based firms who are against the outsourced overseas model themselves who provide extremely dedicated services to the UK legal market.
Conveyancing is a discipline that benefits tremendously from outsourcing as it is heavily process and task driven, creating regimented procedures. Examples of where outsourcing can benefit the conveyancing process is to outsource the sales/onboarding segment, the accounts and post-completion formalities, the file reviews and risk management elements.
A successful outcome when using outsourced services is having an extremely efficient independent yet dependent; invisible yet visible arm to your business, which works in unison with your firms’ values.
If all these aspects are outsourced a firm is left to deal with only the legal aspects providing a good client care service, communicating effectively, and progressively eliminating any delays in the transaction.
As with any new initiative being incorporated by a law firm, due diligence is imperative but if a dedicated in-house team is assigned to administer correct processes and procedures to the outsourced team then successful results will produce happier clients, repeats business. less risk and more growth.