An in-house lawyer's guide to outsourcing legal work

We investigate the growing number of outsourcing options available to in-house legal counsel

Is your in-house legal team wasting precious time on repetitive work?

Or worse, are you wasting precious budget sending straightforward tasks to your law firm partners?

We look into the many outsourcing legal service options on the market.

Budgets are being squeezed

In-house legal departments are under increased pressure to get more work done for less. Only a quarter (25%) of in-house teams said they planned to increase their budget, a Ӱ survey found.

And time is being wasted

More than half of in-house lawyers list spending too much time reviewing documents as a key pain point. A similar number said they spend too much time on repetitive tasks that are low priority.

Now is the time to get strategic

Legal counsel urgently need to reconsider how they're managing workloads. What work should you keep internally? What should you pass to a law firm? Where should you outsource the rest?

We discuss...

Now, more than ever, is the time for in-house legal teams to cement their place as strategic, commercially-savvy and digitally-driven assets within their organisations. However, many are being held back by mountains upon mountains of routine, lower-priority work.

 Instead of attempting to manage this hefty workload internally, or sending anything and everything over to their law firm partners, a growing number of legal counsel are looking to outsource workloads through unconventional means – giving them more time to focus on the strategic, board-level tasks.

In this report, we take a look at some of the many outsourcing options available to the in-house legal market, including:

The Big Four accountancy firms

The workloads of in-house legal teams are growing - and the bad news is, they're only going to get bigger.

This leaves legal teams with three obvious options; hire more people, invest in legal technology to automate work, or outsource it to the right legal services provider.

The two latter options are where the Big Four accounting firms have carved out a competitive niche, benefitting from the growing prominence of ALSPs (see above) and changing the way that legal services are delivered.

“Most in-house teams have traditionally been used to working in a certain way; you either do the work yourself or you ask your panel firms to support you. Whereas, if you are in any other business function, you’re used to doing it a bit differently; you’re used to outsourcing scale stuff,” says Anup Kollanethu, UK Head of Legal Managed Services at EY.

“More in-house teams are now starting to see how their peers within the business are operating and there is almost an acceptance they have to adapt and use a different approach.”

The Big Four firms have blended tech and process to better manage high-volume, low-priority work at a much lower cost, says David Wilkins, Lester Kissel Professor of Law at Harvard Law School.

“The Big Four can offer a far higher integration of technology, project management and process management; they employ a huge number of people across a huge range of specialties and they are way more global than even the most global law firm. This is why, for many kinds of issues that companies face, it’s a very attractive offering,” says Wilkins.

Juan Crosby, Partner and NewLaw Leader at PwC, explains how the Big Four have benefitted from the rise of ALSPs: “Initially, ALSPs were more focused on higher-volume, lower-complexity activities a company might outsource... but now the types of services that are offered have moved much higher up the complexity curve.”

The adoption of technology is a key driver behind this change, according to Crosby.

“If you look at the biggest transformation that is happening in law and you look at the way in-house legal functions are revising their operating model, a key component of the change is around leveraging scalable technology,” he says.

With PwC already helping their clients implement technology across a range of business functions, the firm is able to integrate these previously separate systems and give organisations greater insights into their legal data, says Crosby.

Pushing the very boundaries of legal technology gives the Big Four a significant competitive advantage over traditional law firms.

“The Big Four put a lot of investment around researching how they can take existing technologies that don’t even relate to the practice of law, but can provide a client solution,” says Bea Seravello, Co‐head of Baretz+Brunelle’s NewLaw Practice. “Law firms are not there right now, they are still struggling with just embracing technology to use in practice.”

This technology‐enabled component is key to the Big Four’s legal services offering, says Fiona Maxwell, financial services senior correspondent at investigative regulatory news publication MLex.

“Organisations are no longer forced to go down the traditional law firm route, especially if the Big Four are offering tech‐enabled solutions that are better value for money and can be done in half the time. If an organisation is working with one of the Big Four for their audit, tax or consultancy work — why not add on legal services as well?”

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Legal technology

In many cases, outsourcing legal work is a necessity for in-house legal teams - and the range of new providers on the market makes these options even more tempting than before, as we've explored in this report.

However, there might be cases where outsourcing legal work merely places a band-aid on continuously recurring problems.

A growing number of in-house teams are investing in the right legal technology to automate legal work, rather than pay someone to take it off their hands. Popular products range from workflow management tools that are designed to increase efficiency, through to legal document drafting automation software that saves time and increases collaboration.

But one of the most effective time-saving tips for in-house legal departments is to give legal counsel access to the right legal research and guidance.

In-house teams typically get a huge range of incredibly specific legal questions thrown at them each day - and they're expected to provide legally accurate and commercially astute answers almost on the spot. But no-one can be expected to be an expert in corporate law, and commercial law, and competition law, and technology law... can they?

If your legal team don't have access to a paid legal guidance platform, chances are they're Googling the answers.

A recent Ӱ survey of 300+ lawyers found three quarters (74%) use Google for research and guidance information. But this isn't necessarily out of choice. Two-thirds (63%) agreed that it is riskier to use open sources than paid sources, and the same number (63%) agreed it takes longer to complete a research task using free sources versus paid sources.

This is an easy fix. Instead of forcing your legal team to Google answers, or sending basic questions to your law firms (who unfortunately may also be Googling the answer), you can save time by equipping your team with access to legal research and guidance platform.

In fact, much of the guidance written on the market-leading legal guidance platforms is written by leading lawyers at top-tier firms - meaning you're getting the same advice that you'd get if you went to a law firm, anyway.