What is legal outsourcing, and what work can a business outsource?

Legal outsourcing means asking an external provider to carry out legal work for your business. That can mean assigning one negotiation, handing over a repeatable process or using an external team to look after day-to-day legal matters. Start with the work you need covered: these arrangements solve different problems.

Legal process outsourcing or extra capacity?

Suppose your sales team sends a steady stream of similar agreements to legal. If an external lawyer helps clear this week’s queue and your team continues to allocate each matter, that is overflow support. If the provider takes incoming agreements, negotiates within agreed limits and refers exceptions back to you, you have outsourced a process. The documents might be identical; the difference is who manages the work from start to finish.

What can a business outsource?

  • Commercial contract reviews and negotiations. A business can send individual customer or supplier agreements for review when its own lawyers are at capacity.
  • Recurring agreements. A team can handle a defined category of documents against a playbook. IHLS has used this approach for transactional NDAs and engagement terms for banks, investment funds and advisory businesses.
  • A defined project. Repapering a portfolio of agreements or reviewing documents for due diligence can need more people for a limited period. Set the deliverable and agree how progress will be reported.
  • Ongoing legal support. Where the need extends across the business, an outsourced legal team can provide continuity across different matters.

What should you keep in-house?

Start by deciding who can accept a commercial risk. For example, an external lawyer can negotiate a supplier agreement against your usual terms, but your business may want to approve an exception before anyone agrees to it. Give the provider a named contact for these decisions. Discuss confidentiality, access to documents, where information will be held and how responsibility is allocated before handing over work.

How to choose the first piece of work

Look at a recent month’s requests. Which agreements recur? Where does work wait for approval? Which requests need your team’s knowledge of the business, and which can move forward with clear instructions? Choose a manageable workstream, agree the handover and escalation rules, and review turnaround and exceptions together.

For an example of temporary support in practice, see how IHLS helped a legal team between senior hires. To compare ongoing support, contract negotiation and project work, explore our legal outsourcing services.

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