Professional services jobs hit outsourcing

Nasscom, the premier technology commerce body in India, has just released a report saying that 35,000 legal jobs will move overseas from the US by 2010, while Forrester Research says that 12,000 legal jobs had already gone overseas by last year. A wide variety of US and UK law firms in particular have gone down the route of outsourcing not just back office work, but also professional work. Last year Hildebrandt – a high-end legal consultancy – and Office Tiger – an Indian outsourcing company – launched a service offering business process outsourcing to law firms, helping make this a mainstream strategy. One of the seven drivers of professional services I described in Developing Knowledge-Based Client Relationships is Modularization. This describes how technologies such as web services enable business processes to be broken down into smaller modules, each of which can be performed inside or outside the firm. Professional firms must have more standardized work done by cheaper providers, or they simply will not be competitive. It will take some years, but starting from now low to medium-level professional work will increasingly be done outside professional firms, and often across national boundaries. The shift has begun.