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UK firms outpace US rivals in India

I feel that the UK firms are joing hands with Indian entities in the hope that when the Indian market liberalises, it will allow a JV model rather than full practice rights to foreign firms. This approach is bound to backfire for either of the following two reasons: (i) Under US pressure the indian legal market will open to allow full practice rights and the UK firms will then have to either divorce their Indian partners or be saddled with dead weight, while the US firms hire a few smart lawyers and work efficiently; or (ii) the market opens up as a joint venture and then the US firms (and other UK firms that do not have a tie-up) simply poach a few smart lawyers in India and ask them to set up their own practices with which they will do a joiont venture. They wont have to pay a huge premium to the owners of Indian law fimrs and will get the right talent without any baggage. Thus, either ways the strategy of joining hands with an established India firm and paying a huge premium to their owners will not pay.

7-Jul-2009

5:21 pm