Offcounsel: Legal Dept Outsourcing

Is the outsourced legal dept for you?  

OLD represents an unique solution for small and medium-sized, but at the specific circumstances also for large integrated international companies present in CEE markets. You may, however, consider the following frequent reasons against use of our services: 

"I do not need a corporate lawyer, I use standard contracts publicly available, or processed by lawyers in the past and I choose to not enter into litigation. 

Congratulations to the fact that you have a good selection of business partners and good luck.

But still we must ask (and this is just a small selection):

Are your contracts adjusted in such a manner that they not only comply with the law, but really protect your interests?
Are your contracts with suppliers have prepared in negotiation with equal bargaining power, or are there contracts standardized by only the other side?
Creates your contracts the best available level of legal protection against failure of your  partners in the form of transfers of assets to other entities and the sudden decline in the creditworthiness of your partners?
How long was your last (or pending) dispute where  you have been sued?
How often in the recent period you decided rather not enter the litigation because you did not have sufficient evidence of what was agreed orally, by telephone or e-mail, or as deviations from a written contract?
What would you do if you are  the defendants in lawsuit started by your customers for damages?

"I can not pay an employee who does not directly contribute to the company's profit."


" The role of good corporate lawyer is day-to-day contributing to the profitability of the company by improving its instruments for the prevention of bad debts, shortening recovery time, reducing the share of overdue debts, removing the risk of loss bearing transactions by better price and payment arrangements and reducing non-productive costs in the form of claims, damages and legal proceedings outstanding.


" Certainly, the cost of lawyers are not low, would it be attorney-at-law (solicitor/barrister), corporate lawyer or, finally our program OLD.

However, OLD still offers significant competitive advantages:
1) the OLD give you possibility to select either a fee for our services, or prepaid number of man-hours. Outsourced legal department agreement provide for the accession of the client to our contract with our internal senior lawyer under Hungarian labor law. This allows us to limit your costs to your directly agreed payment, which shall be final, and is not subject to levy, or withholding tax/social fees payable by client. 
2) Communication and performance in the OLD are bound to precisely agreed system of document flow, which allows us to  adapt to your needs and working/decisionmaking cycles, and also provides for the introduction or use of elements of process management within the client processes, effectuating that no  internal downtimes shall emerge without justifiable reasons (such as sick leave, obstacles to work with your staff or lack of substitutability people that manage your contractual or claims documentation).
3) For prepaid services that do not require cooperation from third parties, we can guarantee in the monthly fee as well as man-hours the limit of their drawing to avoid a sudden increase of your costs.
"I do not need corporate lawyer, sometimes I will use a lawyer and I'm happy"
In Central and Eastern Europe there is really plenty of lawyers, and most definitely deserves your satisfaction. However, in addition to a comparison of costs of occasional services there are several other questions to consider:
1) How do you regularly decide when to seek the assistance of a lawyer?  Were there cases when you has been told frankly by the lawyer  that you are going to him late, and that a problem can not be resolved in your favor (or in limited scope), and that the problem would be avoided if reported earlier?
2) How quickly you get a response from a lawyer and in what time you will get the output of his work?
3) Do you have with your lawyer some framework agency contract or are you authorizing him ad hoc, without having any special arrangements for costs?
4) How many of your transactions include foreign partners ?
5) Did you experienced that youe lawyer  referred you to foreign colleague or generally reported that you need the legal aid abroad?
"I do not need your service, I have a long-term contract with a lawyer, and I'm happy"
In CEE, there is  amount of attorneys and law firms of various types and orientations. However, the vast majority of lawyers working in classical Law Firms are performing "general practice" or "specified" its peculiar law branches so wide, that they can not talk about any branch-focus (and particular know how)  of such offices, especially in the case of small offices or individual lawyers.
Long-term contracts with a lawyer is generally good idea but with regard to litigation and public-law experience of Law firms and specific know-how of our company, it is possible to combine these services in order to increase their effectiveness, particularly in cross-border business.
"I do not need Offcounsel-OLD, for I have my own in-house counsel / legal dept"
In house counsel in an SME should normally "focus" of litigation, contracts including negotiations on the conclusion of the contract, and contractual agenda  not only with regard to suppliers, customers and possibly the state, but often also to employees, executive directors of the company and its statutory and other bodies. 
It gets inhouse counsels  to a high risk of conflict of interest effectuating rising / exorbitant /  transaction verification (or corporate governance) costs but also costs of communication and proceeding controls. Inhouse counsel often are asked to address simultaneously labor disputes and negotiations with existing partners and concurrently are obliged to prepare the best practice of respective company, thus refocusing in short terms to very different types of model contracts, arrangements and legal processes.
Offcounsel:OLD may thus also serve to reorganize your today's legal department, and in the contrary also allow participation of your In-house counsel (during the periods when he is not fully loaded with your tasks) in our team and its services to third parties (as employee shared with other companies), amounting to the cost-saving by payback from our other clients,  or specialization of your lawyer to core business of company. 




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