EY Law published a new research report titled "Realizing the benefits of legal managed services". The report is based on a survey of 1,058 senior legal practitioners from businesses in 25 countries.
Among the respondents, 72% are currently outsourcing legal services in the following six areas which are commonly covered in "legal managed services":
- contract management
- legal entity management and compliance
- employment law
- due diligence
- document retention
- records management
Law departments are constantly seeking ways to control internal and external counsel costs. Optimizing internal operations remains another priority. The EY "Reimagining the legal function 2019" report found that even large law departments spend nearly one out of every three hours on self-described "low-value" tasks. This highlights the importance of improving productivity of the internal legal functions of many organizations.
The introduction of "legal managed services" allows new technology-enabled delivery models of legal functions. The research shows that the law departments that use legal managed services widely enjoy benefits including:
- More cost-effective in service delivery today
- More confident about improving efficiency in the future
- More confident in their ability to respond to geopolitical and regulatory changes
- More confident they have built the right set of capabilities within their departments
- Better able to attract and retain talent
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LC Lawyers LLP is an independent law firm. It is a Hong Kong law firm member of the global EY network, in collaboration with other law firm members.