Sentences with phrase «labor arbitrage»
"Labor arbitrage" refers to the practice of taking advantage of differences in labor costs between different countries or regions. It involves outsourcing labor-intensive tasks or jobs to places where wages are lower, in order to reduce costs and increase profitability. Full definition
LPO relies on labor arbitrage and technology to dramatically reduce the cost of high - volume / low - value «legal» functions (e.g., e-discovery, contract review, knowledge management, compliance, and other routine practices).
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LinkedIn's Labor Arbitrage Comes To Silicon Valley covers the shift to lower cost locations by many Silicon Valley firms.
It started as labor arbitrage and has morphed to a labor / technology / process triad.
Technology — not labor arbitrage — is the engine for a «better, faster, cheaper» delivery of certain legal services.
Meanwhile, some of the external factors that helped to drive profit growth in the past three decades, such as global labor arbitrage and falling interest rates, are reaching their limits.
energy and labor arbitrage offer China massive advantage.
Organizations can reduce their cost structures through labor arbitrage - the wage differential between in - house legal personnel and outside vendors - to reap tremendous cost benefits.
A growing number of law firms will fully embrace labor arbitrage by maintaining offices in lower - cost cities within the same country.
And it's not just labor arbitrage that accounts for the shift from outsourcing work to doing it in - house.
«majority of firms are practicing basic labor arbitrage — shifting work to less costly lawyers.
One obvious advantage that both «make» and «buy» have is that each approach saves money over current operations on a purely labor arbitrage basis.
I've said many times, there is nothing wrong with labor arbitrage.
But labor arbitrage only slows, rather than levels, the uptick in legal spend — i.e., it does not fundamentally bend the legal cost curve identified by the essential Bill Henderson:
It is justifiable for a law department to enter into a relationship with a managed - service provider expecting that the initial savings will come from labor arbitrage.
These are the reasons — extending well beyond labor arbitrage — why so much «legal» work has migrated in - house.
Additionally, CEO Widmar notes the lower labor cost per watt of its Series 6, which reduces the labor arbitrage benefit of building modules in Malaysia or Vietnam.
Labor arbitrage was the key phrase when the term LPO was first coined.
The LPO model relies on labor arbitrage and technology to dramatically reduce the cost of high - volume / low - value «legal» functions like document review.
The legal industry «quickening» is unfolding in a manner remarkably similar to how each of the HRO and BPO chapters unfolded — around the premise that with technology and labor arbitrage we could deliver services «better, faster and cheaper».
Our business model focused on labor arbitrage, to provide cost - effective legal and business services to corporate law departments and law firms.