Nearly one in six law firms is now outsourcing part of its business functions and demand is likely to rise when new entrants join the legal services market next year.
Some 57% of the top 200 law firms outsource some business functions, mainly technology and administrative services, according to a survey commissioned by DDC Outsourcing Solutions, 38% use specialist companies for their IT functions, and 29% outsource some or all of their typing or copying work.
Law firms cited cost and reputation as the two most important factors when selecting an outsourcing partner. Some 62% of law firm partners taking part in the research said they prefer to outsource within the UK rather than overseas.
“Although this survey only provides a snapshot of a large and complex sector, there was interestingly no direct correlation between the size of law firms and their appetite for outsourcing,” said Mark Smith, commercial director of DDC Outsourcing Solutions.
“In fact, small firms are just as likely to outsource as large practices.”
Smith said he expected demand to rise when new businesses enter the legal market next October under the Legal Services Act reforms.
“Faced with the prospect of increased competition, law firms are under pressure to commoditise their products—especially those seeking to attract outside investment. Those who insist on keeping everything in-house could soon find themselves outgunned on price and service.”
