Hogan Lovells shuns 'lift-and-shift' with new Kentucky back office

The international firm will seed its second global business services centre in Louisville, Kentucky, adding a crucial US link-up to services already on offer at its flagship business centre in Johannesburg.

Dmitry Kaminsky

The new centre will be handling billing, technology support and conflict checks for Hogan Lovells by August and will provide a crucial link between American offices and the firm's existing business support base in South Africa. Hogan Lovells is just one of a growing list of Big Law firms who have opted to set up 'back offices' outside of major business hubs. Chief operating officer and financial officer Scott Green describes the approach as 'seed-and-grow' rather than 'lift-and-shift', as moving back office operations to the more economical Louisville will not generate any layoffs and see only one employee, Hogan Lovells global head of conflict Bill Ball, transferred to Kentucky. 'As we have jobs vacated in Washington and New York, we'll look to see if those jobs can be added in Louisville,' he commented.

A win for Kentucky

The new centre will launch with an initial 50 staff and eventually grow to around 250 positions on an average salary of $65,000 per year, with a total investment of $8.9m over the next decade. 'As one of the world's most influential law firms, Hogan Lovells' decision to locate a business services centre in Kentucky is a testament to the quality of our workforce and the desirability of our location,' said Kentucky governor Matt Bevin in a statement. Hogan Lovells' Washington, DC regional managing partner Alice Valder Curran commented of the choice: '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.' Sources: The National Law JournalHogan LovellsCourier Journal

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