DUBLIN, Feb. 13, 2020 /PRNewswire/ -- The "Alternative Legal Service Providers Market in US - Industry Outlook and Forecast 2020-2025" report has been added to ResearchAndMarkets.com's offering.
The US alternative legal service providers market is expected to grow at a CAGR of over 23% during the period 2019-2025.
Key Market Insights
- Provides comprehensive insights on the latest industry trends, market forecast, and growth drivers.
- Includes a detailed analysis of market growth drivers, challenges, and investment opportunities.
- Delivers a complete overview of market segments and the regional outlook of the market.
- Offers an exhaustive summary of the vendor landscape, competitive analysis, and key market strategies to gain a competitive advantage in the market.
The US alternative legal service providers market will grow at a staggering CAGR during the forecast period due to the intense business and regulatory changes driving the need for sweeping, company-wide transformations, and creating expansive hurdles for compliance and legal functions. While alternative legal services are currently in the nascent stage, they are driving a future focus that is centered on the growth and advancement of end-to-end solutions.
Alternative legal service providers increasingly appear on the horizon - they are mostly less expensive than in-house counsel and are better attuned to help confront legal struggles. Alternative legal service providers can aid with augmenting business operations and are thus gaining popularity. While historically in-house departments acted as low-cost alternatives to traditional law firms, the cost of conducting business and climbing salaries of law professionals is looming threats for in-house law management, thereby increasing the popularity of alternative legal services.
Another major driver for their growth in the market has been that these services offer integrated solutions to more than merely legal challenges; they help corporations solve global business challenges (such as risk management, cybersecurity, and data privacy), making them attractive partners.
Growth Driver Highlights
- Focus Shifts to Delivery
- Injection of Investments
- Rise of Self-service Functions
- Blurring Lines between Traditional and Alternative
- Prevalence of Dissatisfaction with Law Firms
- Intensifying Focus on Technology Adoption
The market research report includes detailed segmentation by products, services, end-user, and geography.
New Law firms have been the most disruptive players in the market, accounting for major work carried out in the document review and litigation spheres. There is a growing trend of building strong SLAs and utilization of performance metrics. With the growing openness of law firms, there comes a growing affinity for a blended approach to deliver services. This approach has been increasingly adopted across firms over the last couple of years. As law firms, big as well as small, look to reclaim their position in the market, they have been developing in-house alternative legal service providers that can afford them the ability to delve into more services.
Major law firms typically have been able to invest in new technology, processes, and talent and can collaborate without disturbing the original practice-centric way of working by developing branches that sell these services. However, this is also working against their proliferation, slowing down the entry of players in the market. Hence, with technology becomes widespread, hybrid players have scaled back on their services offering and shifted focus on developing and offering legal tech to the wider market.
The proliferation of the internet and smart device, which have resulted in a data explosion, including social media, e-mails, instant messages, audio clips, voice notes, images. They have all made the collection and review extremely challenging and expensive when performed in-house, thereby driving the demand for tools and professionals outside of the traditional model toward specialty firms and technology companies.
Further, security and data privacy regulations are having their effect on the market. As the US is continually refining eDiscovery laws via case rulings and the global privacy trend is having its bearing on American litigators, legal teams are under more pressure to keep atop protection or privacy obligations. Hence, the market is evolving at a rapid rate and faces possibilities of AI disruption. In order to survive, vendors in the market need to keep a tab on developments and refine services accordingly. The wave of consolidation that is a result of the presence of a large number of firms is expected to continue during the forecast period.
A shift in focus from brand status and services to efficacy, providing high viability on investments. The demand for document review and legal research continues to grow significantly. In an age where customer-centricity and differentiation are vital, several players are increasingly examining cost-benefit trade-offs. They are forsaking rote, administrative work by outsourcing it and focusing on high-value tasks and core competencies to their best potential, thereby increasing demand for alternative legal service providers.
Another driver comes as a response to the threat of internal strife. As the industry struggles with talent and demand surpass capacity during episodic events, it is outsourcing certain tasks to reduce damages related to the lack of additional resources. The traditional legal industry has been battered by stupendous change, and large law firms have been ambushed with evolving technology and the expansion of corporate legal departments. As a result, the employment of alternative legal services is more prominent in large firms than in smaller ones.
Unlike law firms, corporates tend to employ one alternative legal service provider or partner with them along with a law firm. There is a lesser likelihood of using different alternative legal service providers. This is expected to create a demand for services, which can be all things to all people. This has led to alternative legal service providers operating in the market taking huge strides to provide high value instead.
However, a barrier in the market specifically among small and medium-sized corporations' departments is the hesitancy to hire managed legal services personnel, especially lawyers. Hence, not only corporations and law firms have increased their use of alternative legal service providers, but they have also evolved how they use.
Alternative legal service providers have essentially entered the landscape around 2000, evolving with spurts across two time periods: from 1999-2007 wherein outsourcers such as Axiom, Integreon, and Exigent made their way into the market. The market is witnessing a growing number of global law firms, which are imparting credibility to the concept of legal service delivery. With clients increasingly moving further afield in the Rogers Diffusion Curve, lawyers and law firms will account for a less dominant share.
- Allen & Overy
Other Prominent Vendors
- BlackStone Discovery
- Clifford Chance
- Greenberg Traurig
- Lawyers on Demand (LoD)
- Reed Smith
- Lumen Legal
- Morae Global
- Thomson Reuters
For more information about this report visit https://www.researchandmarkets.com/r/7gk4bg
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SOURCE Research and Markets