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Profit and laws
Western companies and individuals spend $250 billion (Rs 10 lakh crore) a year on legal fees. This number is way too high, sometimes even crippling. We figure that the vast majority of this work can be done in India for half the cost, so we are actually looking at a legal outsourcing industry worth up to $100 billion (Rs 4 lakh crore) or more. SANJAY BHATIA, member of the National Association of Legal Offshoring Companies
Dhiraj Merchant, 28, started out in the sector four years ago, working in a tiny, dingy office with less than ten employees. Today, just the team he heads has 40 members, while his firm has more than ten times as many people on its payroll. His salary has also increased fourfold.
.......Reporting: Snehal Rebello Photographs: Rajanish Kakade Mumbai
AS ATTORNEYS in New York retire for the day, it's the start of a fresh cycle of legal work for Mumbai lawyer Dhiraj Merchant. But the 28-year-old does not wear a lawyer's black coat. Nor does he walk into courtrooms or argue cases. He never wanted to.
Instead, based on the previous evening's conference call with a US client, a formally dressed Merchant already knows his tasks for the day – processing medical insurance claims for employees in the US or reviewing contracts that his team has worked on for a UK company . For instance, employees of many US firms are eligible for health insurance benefits. But before the firm can process a request, it needs to check various documents. These checks are now being outsourced to India. So on a given day, Merchant's team might pore over an American's medical records, his or her medical insurance policies and other documents to determine whether and exactly what he or she is entitled to get. A law graduate, Merchant belongs to the country's young legal process outsourcing sector, whose annual revenue is forecast to reach $640 million by 2010. It is a sector where legal departments of companies and other organisations based in the US or Europe outsource work to India, and pay half the price they would have otherwise. The sector is booming, as evident from Merchant's career graph. It took him four months of deliberation to pick this career. But four years after joining Mindcrest (India), he carries the title of legal manager and takes home a six-figure salary every month. "That's a 400 percent jump from the time I joined the firm in 2004," he said, sitting in his Prabhadevi office. "Starting my own legal practice or becoming a successful counsel would take a lot of time. I was impatient. I wanted to make money early ." For someone who worked alongside 100 others in solicitor firm Crawford Bayley, while pursuing his law degree at the Government Law College, the shift to legal offshoring firm wasn't easy . To begin with, for the first six months at work, Merchant - who lives on Marine Drive with his parents, wife and his brother's family - worked from a 600-square-feet office in Bandra, with just six employees. "Initially, I was not sure I was doing the right thing," he said. "But my gut feeling said I had scope to grow in a small team. So I took the chance." Moreover, he welcomed the opportunity to understand the laws of other countries, such as the US, UK and Canada, and interact with overseas clients so early in career. Indeed, he interacts regularly with Fortune 500 companies based in US, UK, Canada, Australia. Into the unknown When Merchant got a call for an interview in July 2004, not many people knew what the industry was about. Not even Merchant. "I myself did a lot of reading up," he said. "For me, it was like testing the waters. But it's turned out to be a good experience." Cutting short his plans to become a chartered accountant like his elder brother Deepesh, Merchant was fortunate that his family - his father who is an investor in stocks and securities and homemaker mother - supported his decision. Merchant started off as an ‘associate, legal support service' in November 2004, drafting documents and doing legal research. By end-2005, he became a project attorney, leading four projects. A year later, he became a legal manager heading 40 people. "Four years is the longest that any employee has worked in the sector," said Rohan Dalal, managing director of Mindcrest (India). "Having worked on multiple projects and imbibed multi-cultural sensibilities, Dhiraj has helped the company grow. As we reward performance, stories like Dhiraj's will become more common." Had it been a traditional law firm, Merchant many not have moved up the ladder so quickly. "An old, reputed law firm means good experience, and looks good on the resume, but career growth is slow and they are not good pay masters," Merchant said. "Besides, you may need a godfather to get cases." Merchant, whose uncle is a leading solicitor, wanted to make it on his own. Day Four to Day One Merchant's growth has mirrored his firm's. From just six employees in 2004, Mindcrest today has 450 employees on its roll, a head office in Chicago and another one in Pune. "I have interviewed up to ninety per cent of the firm's employees," he said. When not drafting contracts or reviewing project proposals, he is actively involved in recruiting, to which he devotes about two months a year in all. About a week every month, Merchant commutes to Pune to meet clients, interview people and train recruits. Then, from November to March, Merchant, who loves travelling and going on long drives, visits law schools in Delhi, Jodhpur, Goa, Chennai, Kolkata, Bangalore, Pune, Nagpur, Mysore and Hyderabad. The way the industry is growing, Merchant's recruiting responsibilities are only set to increase. But his job might also get tougher, as competition for talent increases. At least four big companies are entering the field every year, experts say. The upside is that more law graduates are opting for careers in the sector. Pangea3, a company that went from 15 employees in early 2005 to 250 in 2007, made 100 offers to law students, double last year's figure. It expects to have 450 employees on its roll by the year-end. "From getting placement slots in the fourth week in 2005, this year we got a slot on day one itself," said Sanjay Kamlani, the firm's co-founder. First-name culture Unlike in the business process outsourcing industry, employees here do not wear headsets and answer calls every few minutes. A firm in this sector works like any other law firm involved in drafting documents and patent applications, conducting legal research and reviewing contracts. The sector teems with law graduates in their 20s and 30s from diverse backgrounds - from big cities like Delhi, Kolkata, Chennai to states such as Kashmir and Mizoram. They pore over thousands of pages by day and then head to a restaurant or pub in the evening. For security reasons, an employee in this sector cannot take work home. There are designations and hierarchies at the workplace, but the atmosphere is informal, and most firms have an open-door policy - not only can one approach one's boss without hesitation, but people call each other, including seniors, by their first names. While most clients are based in the US, law firms in UK, Canada and Australia are also outsourcing their work to India. By talking to each other every day, Indian attorneys develop strong relationships with their clients They may even end up discussing personal relationships and family. "It is professional till the point of work," said Merchant. But when his clients visit India, he often accompanies them for dinner and shows them around the city . ------------------------------------------------------ Case study A day in his life 6.30 AM: Wife wakes him up. 7.00 TO 7.45 AM: Walks on Marine Drive 7.45 TO 8.15 AM: Showers and gets dressed for work 8.15 AM: Eats breakfast of omelette-toast, upma, or poha. Reads the newspaper alongside 8.30 AM: Leaves for work. 9.00 AM: Reaches office 9.00 AM TO 11.00 AM: Replies to emails and prepares schedules for the day 11.00 AM TO 1.00 PM: Assigns work to the team. Reviews and corrects work done and sends it to client or Chicago-based head office. Conducts and assesses tests for prospective candidates as well as conducts interviews. 1.00 TO 1.30 PM: Has lunch comprising roti sabji packed from home. Has tea with colleagues 2 PM TO 6 PM: Prepares proposals for new projects, does conference calls, attends meetings. 6 PM TO 7 PM: Calls clients and Chicago head office. Talks to other managers if a new or prospective client is visiting. 7.15 PM: Leaves office 8 PM TO 8.30 PM: Reaches home and has dinner. 9 PM TO 11.30 PM: Watches news and sports. Plays with nephew on the play-station or cricket on the computer, surfing the Internet. 11.30 PM: Hits the bed. ----------------------------------------------------------- Case Study COURTING SUCCESS: Dhiraj Merchant and his team work out US and UK legal nitty-gritties right here in India. CHATROOM: DHIRAJ MERCHANT ON THEORY AND PRACTICE After spending almost fourand-a-half years in the offshoring industry, it will be difficult for me to get back to the Indian scenario. Did you always want to pursue law? I hadn't decided on law as a career in my early days. Since my elder brother Deepesh was a chartered accountant (CA), I, too, enrolled for the CA founda tion course while pursuing a commerce degree at Sydenham College. For 16 months, I even worked at a CA firm. But accounting and auditing did not interest me. Theory was always my strong point and not numbers. However, the turning point came in my second year at college, when I studied business law as a subject. I developed a liking for law, and figured this was the profession I wanted and joined the Government Law College. What do you look for in a candidate? It differs from project to project. For proj ect-specific interviews, candidates are given a client-specific test. On campus placements, we look for writing and edit ing skills essential for drafting agree ments and picking holes in them, such as like grammar and punctuation. Analyti cal tests are also administered where the candidate has to analyse a case and put it forth. Besides these, research skills and a knowledge of how to use computers is important. Most importantly, communi cations skills have to be good since one has to interact with attorneys in US, UK and other countries. The legal outsourcing industry is fairly new and you've been dealing only with international laws, so do you have any apprehensions? The only thing that plays at the back of my mind sometimes is that after spending almost four-and-a-half years in the offshoring industry, it will be difficult for me to get back to the Indian scenario. And in case of litigation, I will have to start from square one. But for the next 10 years, I don't see anything going against the LPO sector. How did you familiarise yourself with the laws of countries like the US and UK? Indian laws and laws in the US and UK arise out of a common law system with similar concepts. When there is new project, we are trained on the project, either by the CEO or anyone from our head office in Chicago. Sometimes, the client comes down and trains as well. The training can vary from one week to 15 days to even one month. So we learn on the job. Do you keep abreast with changes in Indian laws? Yes, I do keep a keep track of changes in Indian laws once every month. I have subscribed to a website called Manupatra which deals with amendments to existing laws, circulars, notifications for Indian laws and cites cases. --------------------------------------------------------- Case Study rapidfire Star Sign: Cancer Inspirational films and books: I was touched by Taare Zameen Par. Chak De! India inspired me a lot. I don't read novels but regularly read newspapers and law magazines. One thing you will never do: Never say never, but I don't think I would eat a bowl of worms. If you weren't a legal manager with an LPO: A crime reporter since the job would involve criminal law and the legal system. Biggest fear: Losing the ability to think; and always afraid of being stranded on the River Nile amidst crocodiles without a boat. One piece of advice for people your age: Dream big, give 100 per cent effort to whatever you do and be honest. Nothing is impossible to achieve. Love to drink: Vodka Absolut and Tequila Diageo Favourite bar: Czar and Indus Spiritual person: Yes, I believe in God but also in destiny and luck. What do you want written on your tombstone: I am asleep, disturb at your own risk. What money means to you: Money rocks baby. Favourite sportsperson: Sachin Tendulkar, he is God in cricket. Favourite car: Ferrari What makes you laugh: Siddhuism. He can talk on any subject. Most stupid thing you did: Proposed to my school teacher, my first crush in life when I was 15 years old and she 23. -------------------------------------------------------- Case Study KNOWLEDGE IS MONEY: SHILPA SHETTY ON THE LITTLE-KNOWN FIELD OF ‘KNOWLEDGE PROCESS OUTSOURCING' Clients are very professional. But on a personal front, too, we have an excellent rapport. Some have even promised they will fly down for my wedding. SHE LOVES her job so much that she admit ted she of ten "ate her boss's head" for new projects. Shilpa Shetty may have taken the risk of joining an industry when not too many had even heard the words knowledge-process-outsourcing, a sector growing 50 percent every year. "I knew it was a new industry, so I thought I would give it a shot," said Shetty, 28, who has been promoted and had her salary doubled every year. Today, Shetty is among the sector's 25,000 employees across the country – a figure that is likely to touch 2.5 lakh by 2010. Like in the legal process outsourcing sector, here employees carry out high-end work that is knowledge-related or information-related for different companies, usually based overseas, in the area of market research, R&D in pharmaceuticals, biotechnology, equity research, patent research, etc. If the IT revolution benefited engineers and business process outsourcing made more graduates employable, jobs in this sector tap professionals such as chartered accountants, scientists, MBA graduates and lawyers. Shetty joined Integreon Managed Solutions in October 2001 as part of a 25-member team, for Rs 8,000 a month. Eight years on, Shetty is director of content services, handles a team of 180 and takes home a six-figure monthly salary . Her team concentrates on finance-related work. For instance, it may ensure that a US firm's financial documents adhere to norms specified by the market regulator the US Security Exchange Commission. Her team may also design documents for companies abroad. She manages up to five clients and is in charge of implementing the projects, reviewing contracts and renewing them as well as taking charge of client visits. Having graduated in commerce from N M College of Commerce and Economics, Vile Parle, Shetty joined the company as an associate. Integreon was offering more than the Rs 5,000 that other firms were. According to industry estimates, the Indian industry's annual revenue will hit $12 billion to $14 billion by 2010, which will be the bulk of the expected global revenue of $17 billion. Apart from India, firms in Russia, China, the Czech Republic, Ireland, and Israel are also expected to bid for contracts. Initially, firms in the US and UK outsourced work to India to cut costs, but the strengthening rupee is changing the scenario. "The focus will now shift from saving to quality work," said Lokendra Tomar, senior vice-president, Integreon. "We will now have to concentrate on making operations better and calling for innovations. We won't be game to provide cheaper people. Instead, we will sell ourselves as experts." One recent morning, walking into her Powai office at 10 am, the first thing Shetty did was check about 80 e-mails from clients and managers in her inbox. "I am busy the rest of the day responding to mails, draw targets for deliverables and meeting with managers," said Shetty, adding that since the work revolves around finances, she cannot take work home because of confidentiality issues. Her workday usually ends by 6.30 pm. But by 7.15 pm, she is sitting in a classroom at the N M Institute of Management Studies, where she is enrolled in a parttime course in management studies, with a specialisation in finance. "Till now, the exposure has been good, and I have a 360-degree view of the indus try," she said. "I see myself in the industry for a long time, so specialising in finance will help me get clients. Also, doing an MBA makes me feel involved with the outside world since I am learning about the economy. Outsourcing alone used to make me feel disconnected. I now get the best of both worlds." She is worried about the US slowdown, but only a bit. "I am sure things will settle down soon," said the optimist who loves trekking, reading books and does yoga thrice a week. Shetty gets to interact with US and UK clients who come down for quarterly visits and regularly she speaks to them on conference calls. "Clients are very professional," she said. "But on a personal front, too, we have an excellent rapport. Some have even promised that they will fly down for my wedding." --------------------------------------------------------------- news you can use Show me the money JUNIOR ASSOCIATE ATTORNEY Drafts contracts and undertakes legal research. He or she must undergo two weeks of training on the American style of writing, as well as training on research tools such as Westlaw and Lexiz Nexix, which one can use to refer to US cases or statutes. Pay: Starts at Rs 20,000, but six months after the company confirms you, your salary could rise to between Rs 23,000 and Rs 30,000. SENIOR ASSOCIATE ATTORNEY Undertakes projects such as reviewing contracts or analysing cases. Also reviews functioning of junior associate attorney. Pay: Rs 35,000 to Rs 40,000 TEAM LEAD ATTORNEY Manages a team of five to six attorneys for small projects. Is accountable for the team and is answerable to the project leader. Also conducts training for attorneys and sorts out their queries Pay: Rs 42,000 to Rs 46,000 PROJECT LEAD ATTORNEY Responsible for one big project that requires a dedicated team, and also controls quality. Prepares legal reports. Pay: Rs 46,000 to Rs 52,000 LEGAL MANAGER Is in charge of multiple projects. In addition, two or three project lead attorneys will report to this person. Pay: Rs 70,000 to Rs 1 lakh ------------------------------------------------------ SKILLS A law degree is essential. Firms dealing with patent work would need an engineering graduate. You need management skills that are key to working in a team and under deadlines, because you operate essentially as a mini-manager. You need excellent spoken and written English language skills. For high-end work, you need refined legal skills. You need to have creative and logical thinking, and also being a quick learner. ---------------------------------------------------- TRAINING THE GOVERNMENT LAW COLLEGE, MUMBAI Telephone: 2204-1707 Website: www.glc.edu Degrees offered: Bachelor of Legal Services-Bachelor of Law Laureate (BLS-LLB), five-year integrated law course. Bachelor of Law Laureate (LLB), a threeyear law course Master of Law (LLM), two-year postgraduate degree One-year postgraduate diploma in Securities Law THE INDIAN LAW SOCIETY'S LAW COLLEGE, PUNE Telephone: (020) 2565-6775, 2567-8678 Website: www.ilslaw.edu Degree offered: Bachelor of Law, fiveyear integrated course as a well threeyear course Master of Law, two-year course -------------------------------------------------------- GO GLOBAL Law graduates can end up donning the role of global counsels with exposure to international laws. Legal managers handling specialised projects have the opportunity to travel to the client's offices in US and UK for training. If the LPO firm is a high-end provider, you could be involved in designing strategies for Fortune 100 companies and high-net worth individuals across the world. You will also get exposure to global minds through training programmes, common for employees in companies focusing on high-end work. ------------------------------------------------------- PLUSES AND MINUSES Indian lawyers get an opportunity to get trained in and get exposed to foreign legal systems. Employees cannot take work at home for security reasons, so your work life does not encroach much into your personal life. There is no spoon-feeding in this sector, so you end up learning how to absorb new information fast and to learn by yourself, both of which are very useful skills to have in any sector. The job can get monotonous, especially if the project drags on. Legal outsourcing teams in India work 12 hours more every day than their Western counterparts. You lose out on the opportunity to interact with intelligent and learned Indian lawyers. Up to 70 percent of the employees are women, so some men may not like it, while this might be an attraction for others. ------------------------------------------------------------- URL: http://epaper.hindustantimes.com/artMailDisp.aspx?article=01_04_2008_012_008&typ=0&pub=264 |
| Also see : Education, Indian Universities & Institutions, Professional Profiles |