The location of choice: India. An English common law country, it has a well-educated and well-trained legal profession fully capable of researching Canadian, American and British law, and adapting to the host country's practices and procedures. Its lawyers and paralegals can do the highly expensive research, document drafting and production and the like at as much as 70 per cent less than the same services would cost in Canada and the U.S.

An Indian law firm that is completing a six-month project for a large Canadian telecommunications company suggests its client would have to double its legal department to complete the same task. "If they were able to do this in house, they would have had to recruit 20 or 30 lawyers or paralegals and what do you do with them after," a principal said. "Overall, we're probably saving them in the neighbourhood of 60 per cent to 70 per cent of what I call fully loaded costs of salaries and benefits."

Outsourcing is not a benefit just for large firms handling significant and complicated transactions. It is also a distinct advantage for small firms that can't afford to hire junior lawyers and researchers, but can take advantage of the low cost Indian outsourcing, instead. As they would assign matters to local associates, the assignment goes to competent Indian lawyers at virtually half the cost.