The Role Of A Western OLPI And Offshore Legal Provider Capabilities 3

Mahnke et al. (2008)[1] explain the value of intermediation in outsourcing and offshoring and provide an overview of services that OLPI offer to lawyers and providers. More specifically:

1.       The mitigation of cultural disparities has been identified as the first major function for the OLPI. Cross-cultural tensions (i.e. differences in language, organizational practices, and so forth) cause much turbulence in offshoring ventures. If an outsourcing firm does not understand and manage cross-cultural differences and the tensions that arise because of them, substantial conflicts are likely to emerge and reduce the benefits of the venture. Along these lines, an OLPI with experienced staff and managers who are aware of the cultural specifics of both regions can more easily foresee and manage the tensions that arise as a result of different communication styles.

2.       The mitigation of cognitive distance has been identified as the second function of the OLPI. Cognitive distance can result from different mindsets, different ways of thinking, processing information, and communicating. More often, in the offshoring context, cognitive distance arises when relatively lesser-skilled lawyers attempt to exploit the high technological expertise of an offshore provider at a relatively lower cost. This is a major area where an OLPI can add value. In particular, the OLPI may offer services such as specialized translations between perceived lawyer needs and provider requirements, and codified interfaces so that systems can be connected and contracts can be designed and managed. Furthermore, OLPI can contribute to the creation of sufficient common ground to facilitate mutual understanding and avoid conflict.

3.       A comprehensive preparation of the lawyer for an offshoring venture is the third major function of the OLPI. A number of offshoring ventures have generated disastrous results because the lawyer lacked knowledge, experience, and maturity in offshore provider selection and negotiations. The OLPI can help a lawyer to be prepared for offshoring ventures in a number of ways, including creating awareness of offshoring objectives, establishing common expectations with the provider, as well as contributing to contract formulation and negotiation.

4.       Facilitating and managing the ongoing relationship between the lawyer and the offshore provider is the fourth major function of the OLPI. Offshore relationships are not static, and relative to domestic ventures they are more prone to unforeseen situations and contingencies. Especially in offshoring ventures in which project outcomes are hard to identify (and thus the performance of the provider is more difficult to measure), the role of the OLPI is key.

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[1] Mahnke, V., Wareham, J., and Bjorn-Andersen, N. (2008), “Offshore middlemen: Offshore intermediation in technology sourcing,” Journal of Information Technology, 23(1): 18–30.