Is your firm on the list below? If so, read this article with an open mind. There are huge opportunities available – but it takes nerves and a belief that “if you don’t cannibalise your business, then a nimbler, lower cost solution will do it for you”.
The core facts are as follows:
- Change in any environment is difficult, even more so in the legal profession
- Law firms still rely on a significant percentage of income from lower value work billed at high hourly rates
- This lower valued work is highly profitable and is hard to give up
- But Clients now have options – not just law firms to buy services from
- Increasingly US clients are taking this option and cutting the work out of the law firm loop (see our forthcoming 2012 Global LPO Market Study)
- So clients are then “Dual-Sourcing” i.e. buy the transactional work from LPOs and the higher value-add work from the law firm
This is an evolving trend, but any law firm that does not recognise it risks being left high and dry when the trend becomes the norm.
As of 2012 it is certainly not too late to act. In fact, there is huge value from acting now to deal with this shift in how legal services are being bought. I will come back to this in more detail later in the week (my billable hours permitting) but the crux of the matter is:
- Law firms on the list below have valuable delivery assets
- There will be an ongoing market for these services
- It is highly unlikely that, on their own, any law firm will be able to restructure their delivery model to compete with the Legal Outsourcers
- However, there are innovative ways to access the LPOs skills while ALSO establishing a delivery model that has real $£$ value attached to it.
As a taster, look at what is happening back home in the UK. The Legal Week story today about London firm Berwin Leighton Paisner (BLP) gave a glimpse of how some firms are reacting. At its most simple level they are creating a separate entity with which to offer low cost transactional legal services. Personally I think they have missed a trick or two that could have delivered further tangible value in a shorter period of time.
First have a look to see if your firm is on the list below. If it is then email my PA ([email protected]) to find out exactly what is available in the market today for your firm. Then look at the BLP article at the end and we can have a detailed conversation about exactly how you can access real value in the face of the Legal Outsourcing threat.
Are you on this list?
Latham and Watkins,
Skadden, Arps, Slate, Meagher and Flom,
White and Case,
Kirkland and Ellis,
Morgan, Lewis and Bockius,
Weil, Gotshal and Manges,
Cleary Gottlieb Steen and Hamilton,
Orrick, Herrington and Sutcliffe,
Ropes and Gray,
Gibson, Dunn and Crutcher,
Morrison and Foerster,
Holland and Knight,
McDermott Will and Emery,
Paul, Hastings, Janofsky and Walker,
Wilmer Cutler Pickering Hale and Dorr,
Winston and Strawn,
Foley and Lardner,
Melveny and Myers,
Fulbright and Jaworski,
Hunton and Williams,
Simpson Thacher and Bartlett,
Akin Gump Strauss Hauer and Feld,
Covington and Burling,
Shearman and Sterling,
King and Spalding,
Alston and Bird,
Sullivan and Cromwell,
Lewis Brisbois Bisgaard and Smith,
Paul, Weiss, Rifkind, Wharton and Garrison,
Squire, Sanders and Dempsey,
Debevoise and Plimpton,
Wilson Elser Moskowitz Edelman and Dicker,
Davis Polk and Wardwell,
If so, email [email protected] to arrange a 1-2-1 discussion on the value available to your firm.
And then read this article on BLP from Legal Week.