Recession Might Actually Create Changes in the Legal Industry
Fifty percent of US lawyers say that the recession will permanently affect how things are usually done in the legal industry. Roughly half of the 50% said that more alternative fee arrangements or AFAs will be used. A quarter of the said group believed that cost controls would still be practiced even if the recession would be over.
These were the results of the survey, published in the seventh annual ‘Litigation Trends Report’ of Fulbright & Jaworski, an international law firm. The survey was conducted on 275 US senior corporate counsels and 128 in UK. 25% of the UK respondents believed that there would not be really significant changes that will happen in the way business is conducted in the legal industry. However, it was found that counsels in UK are more likely to use AFAs in about 50% of their litigation billings.
With these findings seen, it would be very likely that demand for legal services outsourcing (LSO) will surely increase. Companies that specialize in contracts, intellectual property, e-discovery, and the like will be seeing more work coming.
16% of the survey group indicated that they would be pouring resources on e-discovery, and 28% are looking at taking the same course of action.
In the coming year, increased spending would be made on e-discovery both in the US and in the UK, above others like IP or patent work, contracts, and labour.