Cassandra Burke Robertson, A Collaborative Model of Offshore Legal Outsourcing, Case Western School of Law Working Paper 2010-35 (Nov. 2010),presents a thoughtful discussion of the topic. One point that is clear, from her paper and other sources, is that many countries besides India have seen the arrival of LPO providers.
She mentions that a PWC LPO/Outsourcing Survey published in January 2010 refers to legal outsourcing providers in Sri Lanka. Including the behemoth, India, that brings to 11 the number of countries that have been mentioned as providing low-cost law-related services to international clients (See my post of Jan. 27, 2006: Accenture and Mauritius; Nov. 27, 2007: Israeli offshoring; April 13, 2008: Kuala Lumpur, Malaysia; March 6, 2009 #3: South African LPOs; June 17, 2009: China and the Philippines; Nov. 10, 2009: New Zealand; and Feb. 9, 2010: French speaking lawyers looking to Romania and Morocco.).