Pune-based ValueNotes has launched a methodology to rate LPOs.  The business intelligence and research company intends for the 'Sourcing Prism', as the product is named, to be a research tool that serves as a guide to vendor capabilities. They rate a company on three parameters, Services Maturity, Sustainability and Strategic Intent. The results of the methodology have declared CPA Global, Integreon and Pangea3 as 'Pacesetters' in the segment.

ValueNotes has been tracking the global outsourcing industry- including legal services- since 2005. It claims to provide 'fresh actionable insight' by deploying a rigorous analytical framework and a comprehensive on-the-ground approach. "With the proliferation of service providers, the selection and evaluation process has become a major challenge for buyers. The ValueNotes Sourcing Prism is an attempt to make the selection process easier. The Sourcing Prism's three vectors: service maturity, sustainability and strategic intent, also provide an indication of the likely long-term success of the service provider," states ValueNotes' Managing Director, Arun Jethmalani.

Interestingly, the report does not map out various parameters and rank them accordingly. Instead, the report places a company between an 'x' and 'y' axis. The report, which seems to be specifically aimed at law firms abroad, is the first of its kind. Neeraja Khandala, research analyst and co-author of the report, told Bar & Bench, "This is less of a survey and more of an analysis of a company. We consciously avoided ranking LPOs."

Explaining the report, she said that LPOs classified as 'Aspirants' are those below the industry average, 'Contenders' were the industry average and those above the average were 'Pacesetters'. The industry will be disappointed to hear that, according to ValueNote, there are no 'World-Class' LPOs in India at this time.

"The report is aimed specifically at law firms looking at outsourcing to India and for the vendors themselves to know where they stand in the market vis-a-vis these parameters," said Neeraja. She added that over 20 percent of LPOs have, since 2007, shut down.