‘India strategy not about building revenues, but servicing global clients’
Baker Mckenzie, one of the largest global law firms by revenue ($2.67 billion), markets (47 countries) and headcount (13,400), has around 300-odd lawyers working on inbound and outbound India-related matters on a regular basis. GARY SEIB, a member of global executive committee and its Asia-Pacific chair, shares with Sudipto Dey the firm’s India strategy and his views on opening up of the legal services in the country. Edited excerpts:
You recently visited the International Financial Services Centre (IFSC) Zone in Gujarat International Finance Tec-City (GIFT). Any plans of opening an India office there?
We are interested in expanding our presence in India market, an important strategic market as part of our global footprint. However, we still need some clarity around what a foreign law firm could do from the GIFT Zone. We are looking to understand the scope of legal services that could be offered from the zone. We are working with the administrators of the zone before taking a call on whether we should look to have a presence there.
As is the case with most foreign law firms, we want to have a presence on the ground. Till now, we have been managing our clients’ needs in India by flying in and out our lawyers. However, our strategy going forward will depend on the form and nature that liberalisation of legal services will take.
Do you find the pace of opening up of the legal profession in India frustratingly slow?
I am a natural optimist. It is in public interest to have a vibrant, competitive environment in professional services, including legal services. Currently, apart from flying our lawyers in and out, we also work closely with a network of local law firms, including some of the leading firms in the market. The debate around liberalisation (of the legal profession) is on the cusp of significant development. The government has made its position clear that it wants to see this market liberalised. Critically, it wants this market to be a hub of global legal services.
On the other hand, stakeholders in the profession want an orderly, policy-driven liberalisation to take place. We believe there has been progress and the temperature is changing a little bit, people are moving in a common direction. The two uncertainties are: When and in what form. How do you view the resistance from certain quarters to foreign law firms hiring Indian lawyers? It depends on what services foreign law firms will be able to offer. If the foreign firms can only offer international legal services, then there will be some issues around hiring local lawyers.
China, for instance, opened up to foreign law firms around 25 years back. To start with, they could only practice foreign law. But, it was in 2015 when China permitted joint operations between local and foreign law firms. We had the first joint operation approved in China and can now practice both local and international law in the country. The issue of hiring is very aligned with what a foreign firm is allowed to do in a market. So, how will the India strategy look like going forward? We are in this for the long term. We continue to remain patient, focused and watchful. In fact, we were one of the first ones to enter the AsiaPacific region in 1963. We have around 300 lawyers across the firm, all members of our Global India Practice, that works on inbound and outbound India related matters, not full time, but on a regular basis.
The India strategy will depend on the market and the regulatory environment. In some markets, we have opened an office and built the business from the ground up. In other markets, we have acquired teams and local firms or entered into joint operations. It all depends on what is required in that market. In India, regulations permitting, you would see a mix of some partners repatriating and partnering with some talented local firms.
India is a strategic market for us. It is not about building revenues out of India, but our ability to deliver a full-service practice to our clients from across the globe. Our strength as a firm is to deliver cross border services, be it transactions, advisory or disputes, to our clients across borders, and to help our clients navigate and simplify an increasingly complex global business environment.
We are in India for the long term. We continue to remain patient, focused and watchful. The strategy will depend on the market and the regulatory environment
Is there any link between making India hub of global legal services and opening up of the legal services? There is a technical background to that. If a foreign lawyer comes to India for international arbitration, and practices say English law, the question is then does that breach the Advocate’s Act? We need some clarity on this. With the Singapore International Arbitration Centre opening its office in the GIFT Zone, the framework (for a global legal hub) is coming into place.