Taylor Wessing is set to offer legal process outsourcing (LPO) services to other law firms with plans to spin off its document review business now underway.

The firm is currently appointing an adviser to look at a demerger of its New Street Solutions document review business to become an entirely separate entity.

The move could see the firm sell off a 51% stake in the business to outside investors, with Taylor Wessing partners retaining 49% ownership.

The firm said the process is still in the planning stages, but could see it raise £5m from external investors after the separation is complete.

If the firm decides to go ahead with plans, it expects the demerger to go live towards the end of 2012, with the option of a float also remaining under consideration.

New Street Solutions, which was launched in April last year, has 10 staff and offers low grade legal work such as due diligence, data mining and contract management services to Taylor Wessing clients. The business is expected to bring in more than £300,000 in revenues in its first financial year in operation.

The service currently acts as an alternative to LPO for Taylor Wessing's existing clients, but by separating the entity the firm hopes it will also allow it to more effectively sell its services to other law firms.

The firm has yet to decide on the best regulatory structure for the new business, as it provides both legal and non-legal services, with a corporate entity or an alternative business structure (ABS) both under consideration.

A Taylor Wessing spokesperson said: "It was always an intention of ours to spin it off if it proved to be successful because we want to provide services to other law firms. We are still in the process appointing an adviser and the details are not set in stone at this moment."

The news comes as a number of UK law firms remodel themselves in light of increased competition in the post Legal Services Act environment.