Legal process outsourcing is gaining popularity worldwide as law firms look to reduce costs and free up time for attorneys to focus on high-level functions. National Legal Staffing Support points out that the legal process outsourcing industry as a whole is expected to be valued at $35.9 billion in the next few years, according to a Research and Markets report.
An Altman Weil Survey reported that 24.1 percent of law firms outsourced functions not directly related to their lawyers, 57 percent used outside lawyers on a part-time basis, and 48 percent contracted with lawyers. In the years since that 2019 survey, those percentages have continued to increase.
Below are some of the emerging trends in legal process outsourcing and explanations for why it’s such a booming industry.
Advanced Technology
Advanced technological tools are making the lives of people everywhere easier, and law firms are no exception. The problem is that storing and managing the wealth of data law firms need requires high-powered and expensive software and hardware solutions.
Legal process outsourcing companies, though, can integrate law firms into cloud-based software systems that are easy to manage and accessible from everywhere. What’s more, data privacy and cybersecurity are at the forefront of these cloud services, which removes a layer of concern for law firms.
Automation and Artificial Intelligence
Other advanced technologies used by outsourcing services include automation and artificial intelligence to help them collect and analyze tons of data simultaneously while also helping to predict the future. This, in turn, helps law firms save valuable time, effort and money.
To wit, legal process outsourcing services can automate mundane processes such as forms and document processing for new clients and throughout the legal case. They can also use AI tools to predict where a settlement negotiation might land, and they can help the law firm assess whether a case is worth taking on from a risk perspective.
To this point, many law firms are focusing on legal tech startups since one of the biggest values of legal process outsourcing services today are the technology tools they provide. This could also include blockchain technology, which is a decentralized way to store, manage and process data.
Onshoring and Nearshoring
Outsourcing often has negative connotations, as companies are wary of sending certain essential services overseas. However, National Legal Staffing Support says that onshoring and nearshoring are other emerging trends in legal process outsourcing services.
This includes outsourcing legal tasks to companies located within the US and possibly even right in your backyard. What this does is help alleviate many concerns that sending work overseas brings, and also helps improve the customer experience.
That last point is vital from two fronts — both for the law firm itself and for the firm’s clients. Local companies can often provide more hands-on and quality services because they understand the market better.
Increased Demand for Flexible Pricing Models
Finally, as legal process outsourcing services become more popular, an emerging trend in the market will be an increased demand for flexible pricing models. Instead of law firms having to choose from big “off-the-shelf” packages, they’ll search for more tailored and personalized offerings. Of course, this will come with a desire to pay fees that are more customizable to what they’re purchasing.
A complementary emerging trend is the demand for multidisciplinary outsourcing services. The more products legal process outsourcing companies can offer, the more likely they are to attract more clients who will pick and choose which services they need.
About National Legal Staffing Support
National Legal Staffing Support is a pioneer and leading legal process outsourcing provider. Located in Boca Raton, Florida, the company offers front- and back-office support to experienced consumer protection attorneys specializing in debt resolution. Services offered include paralegal aid, document management solutions, pre-litigation support, pre-filing analysis, research, and client communication management.
