CMS Cameron McKenna (CMS) and Osborne Clarke (OC) have scaled back their legal process outsourcing (LPO) agreements with Integreon within days of each other. CMS is seeking an alternative provider while OC is looking to bring resources back in house.
The ten-year deal between CMS and Integreon, struck in May 2010, was the largest of its kind, worth £600m. CMS had hoped it would establish a revolutionary alternative model for legal support services by outsourcing its entire support staff function in areas including finance, human resources, and IT. The deal resulted in an estimated 9% of its support staff being made redundant, while a further 21% were relocated to either Bristol or India.
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LPO provider Integreon has lost its business development chief John Croft to legal services provider Elevate, just weeks after CMS Cameron McKenna and Osborne Clarke scaled back their agreements with the outsourcing giant.
Elevate, whose founder is former Integreon CEO Liam Brown, announced Croft’s London-based appointment on 19 April, as the company seeks to launch a ‘new alternative legal services provider’ in the UK. Croft will establish Elevate’s technology and services in the UK and European markets.
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CMS Cameron McKenna will reform its partnership remuneration model on 1 May, enabling salaried partners to become equity partners quicker but increasing management scrutiny on performance.
After 18 months of deliberation, the firm voted in favour of discontinuing its salaried partner level recently, achieving the required 80% majority needed to push the reforms through.
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CMS Cameron McKenna is to scale back its staff outsourcing agreement with Integreon just three years into its ten-year contract.
The news comes four days after Osborne Clarke confirmed it will dramatically reduce its own use of the outsourcing provider.
Duncan Weston, CMS managing partner, today (28 March) confirmed that the firm is considering turning to an alternative provider for facility services currently provided by Integreon but would not provide any detail of how many staff would be affected or the name of the third party provider.
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