LPO is a process by which in-house legal departments, law firms and other organizations outsource legal work from geographic areas where it is costly to perform, such as the US or Europe, to those where it can be performed at a significantly decreased cost, primarily India.

One of the most significant advantages of outsourcing legal functions is cost savings.
For example, an in-house attorney might cost the firm $150 an hour while a vendor attorney might cost $75 an hour.

The use of external personnel can expand internal bandwidth to reduce turnaround time for pressing legal projects.
For example, the 12-hour time difference between the U.S. west coast and India permits 24/7 operations. Offshore teams can work through the night to complete a project by morning.
Outsourcing legal work to external vendors allows organizations to access high-level talent and niche expertise that does not exist within the firm. For example, litigation firms lacking litigation support expertise may outsource certain aspects of litigation support to Offshore destinations such as India and China boast a large, highly-trained and motivated labor force, ensuring a large pool of qualified workers.

Also,By outsourcing to external vendors, law firms can avoid the fixed costs of salaries and benefits associated with full-time, permanent personnel.