Non Traditional Legal Service Providers

In recent years, there have been a host of newcomers to the alternative legal services market, dominated by captive platforms launched by law firms. A number of leading firms in the UK and US have introduced their own alternative services for clients, ranging from flexible staffing and managed legal services to more innovative models that combine third-party services into composite solutions for clients. Flexible legal staffing through VHPs is common and is a cost-effective and efficient way for legal teams to offload the increased workload onto temporary or additional staff rather than hiring additional staff. The use of flexible legal staff also allows companies to hire people with specialized skills on a project basis when the need is not permanent. This allows legal teams to hire professionals with the necessary technical expertise on an interim basis and expand existing talent and skills. Contract lifecycle management (CLM) platforms, which are considered the mainstay of legal work outsourced to third-party legal organizations, enable in-house legal departments to unlock value by offloading standardized, but often time- and volume-intensive tasks to LPO providers and law firms. ALSPs are best suited for standardized volume contracts that do not require special legal expertise. Non-disclosure agreements and purchase agreements are good examples of contracts that are often sent to in-house legal teams and take up a significant portion of a lawyer`s time, but are usually simple transactions that require limited negotiation. Traditionally, clients have turned to businesses to offer a full range of legal services because they appreciate having a single point of contact for all legal activities, and because they simply haven`t identified other specialized providers or segmented their legal needs to outsource certain services to lower-cost service providers.

The strategic use of alternative legal service providers is gradually becoming the norm in the legal landscape, with more than 79% of law firms and 71% of businesses in the U.S. employing at least one ALSP. They are a proven alternative to traditional legal service delivery models for contract review, compliance, electronic disclosure and flexible legal staffing. It can be difficult to part ways with outside lawyers, especially when the breakthrough factor is cost. While recent economic challenges have prompted general counsel to tighten legal budgets, many law firms have raised their rates to offset rising employee salaries and record partner promotions. Cost-conscious GCs therefore turn to other legal service providers (PSAs). One of the fastest growing services where law firms hire ALSPs is legal technology consulting. ALSPs are often early adopters and agile innovators for cutting-edge technologies such as artificial intelligence, blockchain, predictive analytics, and smart contracts. “Easy-to-use services that help us process requests and respond to time.” In no other aspect of the legal profession is this more evident than in the fact that alternative legal service providers (ALSPs) play a greater role in the delivery of legal services. Companies are now turning more frequently to these innovative companies for many common legal services, and law firms are even outsourcing some work to ALSPs that would be too expensive and time-consuming to do in-house.

This new trend holds promise for paralegals who want to own and operate their own independent business. Alternative Legal Service Providers: 2021 Report – Strong Growth, Consumer Adoption and More “Alternative Solution” to download at: www.legalexecutiveinstitute.com/alsp-report-2021/. Expand the bank. ALSPs can also be used to expand the bank for legal services and law firms with flexible (temporary) staff, relieving tasks that are repeatable or require less legal analysis, allowing in-house counsel and lawyers in law firms to focus on “more affected” legal tasks. However, work is slowly leaning towards ALSP. According to the Journal of the American Bar Association, employment in traditional law firms peaked in 2004 and declined moderately in 2011. When not burdened with administrator-level work, your internal team can focus on thoughtful analytics that add value to the business, such as optimizing legal cost control. Secondment of work to ALSPs also relieves understaffed corporate legal departments and avoids burnouts and costly turnover. Chambers ALSP 2021 is the second edition of our Alternative Legal Services Market Guide, providing a leading list of the alternative legal services market in each of our rankings. In this press release, we have added more detail and analysis to our rankings in flexible legal staffing, contract lifecycle management, litigation services, and law firm LPOs. In addition, we launched two flagship tables to capture two of the fastest growing emerging markets in Spain and Asia Pacific.

In most states, the Model Rules of Professional Conduct for the Legal Profession prohibit law firms from being owned by non-lawyers. This is to prevent outside influences from influencing the professional judgment of lawyers. However, ALSPs can belong to anyone, even if they have no legal training. Technology. Another advantage of using ALSP companies is that technology is most used, not only to get the job done, but also for the purpose of tracking metrics and quality control. As an indirect consequence of the heavy technical dependence on ALSPs, legal departments can rely on determining the most suitable tool for the job and also ease the burden of software deployment and maintenance (a task for which some legal departments and law firms may not be best suited or unwilling to handle). This group includes the world`s four largest accounting firms: EY, PricewaterhouseCoopers (PwC), Deloitte and Klynveld Peat Marwick Goerdeler (KPMG). According to David Wilkins of Harvard Law School, these business giants tried to break into the legal market in the 90s, but their positioning of “we`re like law firms, only bigger” didn`t lead to meaningful work. Now, they have found success by deliberately differentiating themselves from law firms and offering a variety of essential legal advisory services. The most obvious difference between alternative legal service providers and traditional legal service providers is that since lawyers are not law firms, they may not do all the heavy lifting.

Although lawyers often make up the bulk of an ALSP`s staff, their work is complemented by people from other disciplines. A typical ALSP team consists of project managers, software engineers, and data scientists. These are some of the findings of Alternative Legal Service Providers: 2021 Report – Strong Growth, Mainstream Acceptance, and Not Longer an “Alternative”, the latest edition of a biennial study by the Thomson Reuters Institute, the Center on Ethics and the Legal Profession in Georgetown Law and the Saïd Business School at the University of Oxford. The report examines companies that provide legal services through models that deviate from the traditional law firm model. “We found a surprising number of collaborations between law firms and ALSPs,” said James W. Jones, senior fellow at Georgetown University Law Center`s Center on Ethics and the Legal Profession. “ALSPs themselves report less tension and mistrust in their dealings with law firms. This is encouraging and augurs well for the further expansion of cooperation on an increasing number of services. By outsourcing the review of these types of contracts to other legal service providers, internal resources can be used elsewhere. It also promotes the systematization of the contract review process, which does not rely on a single person or team and can be easily expanded or replaced.

ALSPs are only one possible solution to meet the current demands of the legal industry, and they may not last forever. Most markets go through stages of divestiture and concentration of services activities, and there are already signs that the outsourcing of legal disputes is being sucked back into large law firms and large consulting and business services firms such as PWC and Deloitte.

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