Top 10 LPO Interview Questions and Answers (2024)

Here are Legal Process Outsourcing (LPO) interview questions and answers for freshers as well as experienced candidates to get their dream job.

1) What is Legal Process Outsourcing?

Legal Process Outsourcing (LPO) is the industry that outsources legal work from countries or areas where it is costly to perform to a distant area or countries where it costs less. Another reason for legal process outsourcing is to decrease the over-burden of the work on the existing staff of the company.

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2) Name the industries where legal process outsourcing is carried out?

Various sectors where legal outsourcing process is carried out are
  • Medico-legal support services
  • Paralegal support services
  • Document review outsourcing
  • Electronic review outsourcing
  • Contract drafting outsourcing
  • Bankruptcy filing outsourcing
  • Legal research outsourcing
  • Paralegal outsourcing services
  • Proofreading
  • Medical and legal billing
  • Document drafting
  • Patent drafting

3) What type of work is done in medico-legal outsourcing?

Medico-legal outsourcing work includes
  • Case screening
  •  Screening and reviewing of medical records
  •  Medical experts opinion and consultancy
  •  Preparation of strength and weaknesses of the case
  •  Developing of case strategy
  •  Clarifying medical language and abbreviations
  •  Medical research
  •  Comprehensive drafting

4) What type of activities are allotted to legal process outsourcing?

  •  Judicial document review requires a lot of scrutinizing work as each and every detail is crucial, and it needs a lot of time and effort; that’s why it becomes necessary to outsource it.
  •  Service providers often take billing work done by legal firms like preparation of the statement, assembling of papers for proper billing and invoices
  •  Clerical work like issuing letters and informing clients about the advancement of their litigation is often handover to the service provider
  •  Preparing salary and benefits statements for the employees of the outsourcing firm
  •  Filing and assembling documents for a patent application by companies and other documents are drafted by legal process outsourcing

5) What attributes hiring company should look in an outsourcing company or service provider?

Attributes hiring company should look for in service providers are
  •  Whether the service provider has engaged in such type of work previously and did he complete the work with commitment and efficiency. Crosscheck the client or company they have worked before
  •  Outsourcing should be only done when a company is satisfied with the staff efficiency of the outsourced company
  •  Outsourcing should be done, when outsourcing company is completely convinced about the service provider about maintaining the confidentiality of the project
  •  Outsourcing company should keep updated the vendor company about the changes in any laws or regulation. This should be done continuously with a proper mode of communication
LPO Interview Questions
LPO Interview Questions

6) List out the advantage and disadvantage of outsourcing?

  • Task completed by an expert in a short span of time
  • Allows the company outsourcing to focus on core process rather than supporting one
  • Reducing recruiting and operational cost
  • Reducing the burden of work by sharing
  •  Exposing confidential data
  •  Difficult to resolve problems like delivery time, quality output, mismanagement of work, etc.
  •  Hidden cost involved especially in off-shore outsourcing
  •  Vendors may lack complete focus on your organization tasks as they cater to other clients as well

7) What are the various pricing model in outsourcing companies?

Various pricing model in outsourcing companies are
  • Variable rate pricing model: In this model, you have to pay a fixed rate. But this model also gives you the flexibility of paying more or less according to the market price
  • Fixed rate pricing model: In this pricing model, despite the market condition, you have to pay the decided amount in the contract. However, this pricing model is not the best pricing model for a long term contract, but many companies prefer this pricing structure
  • Performance-based pricing model: In this model payment is done by as per the performance. You have to reward your vendor with incentives based on the performance
  • Pay per unit pricing model: Depending on the amount of the work done payment is done, the amount of unit is pre-determined
  • Cost plus profit pricing model: Along with the actual cost of the project outsourcing company has to pay an additional fixed percentage on the project. The only downside with this model is that it does not offer the flexibility of changing business objectives or technologies
  • Bundling pricing model: As an outsourcing company you will be paying less for two or more outsourcing services. However, outsourcing company has to make sure that you do not bundle IT services with short term services
  • Profit and risk sharing pricing model: This pricing model more or less works like a partnership business or joint venture where the profit or loss are equally shared by vendor Company as well as the outsourcing company.
Legal Process Outsourcing (LPO)
Legal Process Outsourcing (LPO)

8) How would you measure the Outsourcing Cost?

  • Analyze the outsourcing costs as a percentage of the total cost: One way to look at the cost of outsourcing is to break into a portion of the total cost for a business. It will help business leaders to identify the total costs of outsourcing are too big of a percentage of total operations costs. Pie-charts, visual charts and another analytical mode can be useful in estimating the total cost
  • Evaluate for ROI (Return of Investment): Many outdated business contracts can lead businesses to outsource at inflated prices. It costs the business money and takes away the profit from it. Always, look around the market and see how much does another company charge for the same services
  • Penny saved is a penny earned: While cutting off unnecessary expenses on the project and saving that money for project operation or other project related work may help to turn an expensive project into an inexpensive one
  • Identify the weakest link: Try to identify the weakest link that costs you money. You can act accordingly to save the business money, either by limiting out-sourcing or by reducing certain aspects of operations

9) What is the major outsourcing work carried out in the IT sector?

  • IT Staffing
  • Custom software development
  • Mobile application development
  • Windows XP migration
  • E-learning
  • Web development
  • Software testing
  • Maintenance and support

10) What are the benefits of outsourcing IT work?

  • Trained and certified consultants
  • Automation expertise
  •  Test data management expertise
  •  Engineering approach to software testing
  •  Services delivered within a quick turnaround time
  •  Faster adaptability and less hand-holding
  •  Experienced QA professional
  •  Team size can be reduced or increased based on customer’s requirement

11) List of Top LPO Companies in India

  •  Bodhi Global Services (P), Ltd.
  •  Clutch Group
  •  Cobra Legal Solutions, LLC
  •  CPA Global Ltd.
  •  Integreon Managed Solutions, Inc
  •  LawScribe, Inc.
  •  Mindcrest
  •  Pangea3
  •  Quislex
  •  UnitedLex

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