There’s no doubt that the pandemic has played a part in the recent rise in the popularity of Alternative Legal Service Providers (ASLPs) in the UK. With their ability to offer a more open and flexible approach to legal problems, combining lawyers with technology and other professionals, the demand has been huge. Clients are demanding a more blended service, and the impact of this has been huge.
What Impact do Alternative Legal Service Providers Have on Law Firms?
A 2023 report published by Thomson Reuters found that the ASLPs global markets had grown a staggering 20% since 2019, taking its net worth to $20.6 billion a year. So what impact does this have on traditional law firms, and how can they rise above the apparent threat they face?
Interestingly, loss of work to ASLPs is actually now falling, despite their rapid growth in the market. In the UK, just 13% of law firm respondents reported missing out on work due to the so-called ‘Big Four’, which is a figure down sharply from 29% just two years ago.
Why is competition falling?
The Thomson Reuters report suggests that this fall in competition could point to the fact that ASLPs are actually acquiring work that traditional law firms simply would not take on, or work that isn’t being presented to them in the first place.
Two such examples of this work includes legal research and consultations on legal technology. Reports findings also suggest that electronic discovery could soon also make that list.
Now, law firms are seeing the value in ASLPs, in helping them to identify and implement specific technology solutions, alongside providing training and support where needed. This will inevitably lead to more traditional law firms being able to adopt technologies more quickly, embracing a new way of working and delivering quality legal work with efficiency, and on a much larger scale too.
But it might not be all plain sailing, with plans for ASLPs setting goals that will see their legal headcount double- or even triple- very soon, and competition is set to grow even further.
How can legal firms overcome the threat of ASLPs?
The rapid rise and growth of ASLPs has ultimately led to a demand for a more blended service from law firms. A ‘one-stop shop’ approach is in favour now, with in-house lawyers being expected to manage entire projects, rather than rely on multiple suppliers at once. It’s becoming more and more evident that law firms now need to change the way they work in order to keep up.
Traditional law firms should now start to offer their own consultancy services- and if aspects of the work don’t fall within their skillset, then reaching out to external consultants and ALSPs is crucial. This is all about collaboration; working together in this way ensures that traditional law firms are able to increase business, grow legal and compliance departments and offer a better service to clients all round.
Today’s clients expect law firms to be able to work collaboratively to offer bespoke solutions for their businesses. So having contacts that have a range of skills available- including technology- means that law firms can combine their traditional searches with ALSPs to really fine-tune a solid, workable one-stop shop approach. Remaining flexible and open to changes is key for success.