Biglaw

Yet Another Firm To Move Back-Office Operations Offsite; Will There Be Layoffs?

Which firm is hoping to get lucky in Kentucky?

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layoff victim LFAnother day, another law firm that’s hopped on board the onshore outsourcing bandwagon. As we wondered back in June 2014, “Is having your back-office functions handled on-site — i.e., in the same location as the lawyers being serviced — now a luxury? More and more law firms are adopting the model of sending their administrative support functions to lower-cost locations.”

Two years have passed, and in the interim, several firms have searched for, and found, a money-saving solution to their back-office woes by shipping their support staffers far, far away. From Minneapolis, Minnesota, to Nashville, Tennessee, Biglaw firms have had success in shipping their operations hubs to distant, low-priced locales.

Today’s news brings us information on yet another law firm that’s decided to relocate its administrative services operations, and while this isn’t its first time at the rodeo when it comes to making such a bold move, it’s the first time that the firm will have the opportunity to do so in the United States.

The firm in question is Hogan Lovells, and although it already has a business services center that’s located in Johannesburg, South Africa, it’s now looking to open a similar business center in Louisville, Kentucky. Here’s a report from the Courier-Journal:

Hogan Lovells, a leading international law firm, has selected Louisville as home for its second global business services center, with an $8.9 million investment projected to create 250 high-quality jobs paying an average of more than $65,000 per year. …

The firm’s plans include hiring 100 people in the Louisville office within the first year, gradually building to around 250 in the eighth year.

The Hogan Lovells business center will be Louisville’s first of its kind. If you’re wondering why the firm chose this city instead of another one where Biglaw firms have already had success (like Kansas City, Missouri, which already houses the operations centers of Littler Mendelson and Sedgwick), it may be because Hogan Lovells will receive an incentive package worth up to $4 million to assist in its getting lucky in Kentucky.

According to the firm, operations in Louisville would include the following departments: finance, accounting, human resources, information technology, and legal support staff. Some paralegals and attorneys may eventually be moved to the Louisville location as well. The average hourly wage at this location will be $31.

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Will there be layoffs? Time will tell. Here are statements from two HoLove executives on why the move was made:

“We have concluded that a significant number of our business services need to remain close to our lawyers while others can be readily performed from a remote location with no impact to quality,” said Alice Valder Curran, Hogan Lovells’ Washington, DC Regional Managing Partner. “The key is to find a location with quality and readily available personnel in a time zone that can support our Americas offices.”

“We chose Louisville as it has an excellent supply of talented people, is well placed in terms of time zones and offers good opportunities for cost savings when compared to Washington, DC and a number of our other existing office locations,” said Cole Finegan, Hogan Lovells’ Regional Managing Partner for the Americas.

Congratulations to Hogan Lovells for finding a new way to pad partners’ pockets, and condolences to support staff who may be forced to choose between their locations and their livelihoods. If you have any additional information on the firm’s plans, please text us at 646-820-TIPS (646-820-8477) or email us at tips@abovethelaw.com.

Hogan Lovells to Establish Global Business Services Center in Louisville, Kentucky [Hogan Lovells]
Law firm adding up to 250 high-paying jobs [Courier-Journal]

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