[fa icon="calendar"] 17-Aug-2016 07:49:19 / by Marketing
A recent survey by Williams Lea Tag and Sandpiper Partners LLC, highlight significant increases in technology use and also in technology budgets. Strategies for cost savings include improving process and process management, vendor contract negotiation and increasing outsourcing services.
Along with budget increases, document processing is still the major interest when it comes to outsourcing and savings. Firms are starting to show more interest in outsourcing many additional functions including, finance, accounting and data entry, as well as IT. Firms are ready to spread process efficiency and cost reduction to more areas.
Intense client pressure
This is a significant challenge firms must meet to enable success in cementing client relationships. The Survey offers many insights on how law firm leaders plan to navigate through the barriers and benefits of outsourcing while keeping the clients’ wishes in mind.
Year on year comparison
Comparative data from the past four years is helpful in building the case for the benefits of additional expenditures in the coming year. Each year’s survey has attracted respondents with a larger number of job titles within a firm.
This year is no different. The titles range from managing partners to 30 different C-level and director titles.
Against this background, the Fifth Annual Trends & Opportunities in Law Firm Outsourcing Survey, commissioned by Williams Lea Tag and conducted by Sandpiper Partners LLC, legal industry consultants, offers a blue print of what took place in 2015 and what can be expected for 2016 and beyond.
Survey report highlights include:
1. Budgets are growing.
Firm expense budgets (not including legal staffing) are growing and concentrating on technology and cyber risk.
2. Clients want more security and lower costs.
Client pressures and reduction of cost are the most instrumental among the reasons firms make outsourcing decisions.
3. Centralised back office/administrative functions are still the majority.
But a mixed approach to back office/administrative functions has increased significantly.
4. A majority of service provision remains onshore.
Regardless of the location of back office/administrative functions, the overwhelming majority of respondents show those services are being performed onshore.
5. Firms are looking to technology to achieve cost savings.
The top two strategies that the majority of firms say they employ to achieve savings are increased use of technology and improving processes and procedures.
6. The top factors expected to impact back office costs have not changed.
“Better command and more efficient use of workflow processes” is still the top factor for the majority of firms.
7. The ups and downs of headcount.
A majority of firms are still reducing headcount in back office functions, which is slightly down from last year’s responses.
Authored by: Don Plummer