Digital White Papers

October 2013 Risks and Rewards

publication of the International Legal Technology Association

Issue link: https://epubs.iltanet.org/i/192213

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A MANAGED RISK: OUTSOURCING XXXX PRACTICE SUPPORT SERVICES consideration is how a firm can best manage its underlying e-discovery infrastructure. One option is turning your software over to a provider who will supply the hardware. This outsourcing mindset is not new. In years past, firms, through facility management services, have outsourced their mailroom, word processing and reproduction centers. Having a third-party provider manage back-office support of e-discovery services is an interesting solution, as it allows a firm to take advantage of evolving technology without taking on the direct cost and management of new software or missing out on real-time software updates. The ideal solution that best fits each individual firm really depends on the firm's value system and culture — does it want its litigation/practice support department to be considered a cost of doing business or a potential revenue source? Jackie: What services do you think make sense for a law firm to outsource? Sal: Firms should assess their needs by looking at their department at different cross sections: • People (management, project management, project coordinators, technical analysts, systems analysts, etc.) •Type of litigation supported (large and slow-paced versus small and quick-paced) Jackie: Do you think the quality of services you would receive from a third party could compare to an in-house employee? •Core software •Support software (MS Access, text editors, utilities, etc.) •Hardware (file servers, SQL servers, virtual servers, etc.) •Overall profits and losses Sal: If we are talking about hardware and software services, then yes, I would be comfortable outsourcing to a third-party provider. In fact, the level of support they provide might be similar or even better. But outsourcing your in-house consultative staff to a third-party provider is not as straightforward. If we think back to facility management, the quality of staff is not always at the level one expects once the outsourced party The largest upside to exploring a managed services solution is the opportunity to upgrade and/or introduce new technologies to the firm without the upfront capital costs. Is the department an operational cost or a source of revenue for the firm? Can you get any of the above layers at a lower cost and higher quality? Will outsourcing these services generate a better product, increase productivity or increase profitability while delivering high-quality client service? takes over a department. In my experience, you get inexperienced and junior staff to run the underlying services built into the contract. As a buyer of staffing services, ask yourself: Will you have control of the hiring process to ensure the experience and knowledge required to run an effective department?

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