Eversheds to cut costs with SA outsourcing
Eversheds is set to outsource legal work to its new South African ally Routledge Modise, with the firm moving to cut costs for clients by upping the amount of work it sends to alliance firms. Eversheds has pinpointed its South African ally as an especially lucrative partner because, in addition to the low cost-base, the country has a similar legal system and native English-speaking lawyers.
June 19, 2008 at 01:58 AM
2 minute read
Eversheds is set to outsource legal work to its new South African ally Routledge Modise, with the firm moving to cut costs for clients by upping the amount of work it sends to alliance firms.
Eversheds has pinpointed its South African ally as an especially lucrative partner because, in addition to the low cost-base, the country has a similar legal system and native English-speaking lawyers.
The Johannesburg-based firm will take on tasks including due diligence, drafting and document checking for key clients including Tyco.
Stephen Hopkins (pictured), Eversheds' newly-appointed head of international integration, commented: "We are all set up to [outsource work to South Africa] and this will be done based on client needs. We are planning to outsource work for Tyco and have agreed with them to do this as and when work comes up."
Routledge Modise chairman Terry Mahon said: "This work is done in South Africa because it is more cost-effective. The legal systems are very similar, so where due diligence is required we can offer it at a very cost-effective rate for clients. We can also do drafting cheaper due to our costs being significantly lower."
News of the outsourcing plans comes just two months after the alliance between the two firms went live.
Eversheds chairman Alan Jenkins said: "It is something we have been looking at for some time. It is in the same time-zone, which makes managing easier. There is a common legal culture as well as a common language.
"This business of outsourcing and offshoring – not just in the legal profession – is something that one reads more and more about in the press, and I would be surprised if other law firms were not as interested in it as our clients are."
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