The quarterly publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/11430
Building Virtual Law Firms T he Internet has changed the way everyone conducts business. As a result, it seems only natural that eventually people would seek legal advice online. Indeed, virtual law firms seem to be a growing trend, because the public is demanding reasonably priced, competent legal services and attorneys are looking to practice law with lower overhead expenses. As long as economic instability continues, technology continues to advance, and the demand for affordable legal services drives the legal marketplace, we may see the trend in virtual law firms continue to grow. The Virtual Law Firm Defined Though a “virtual law firm” may sound like the latest social networking site for attorneys, it’s actually an innovation in the provision of legal services over the Internet. This new type of platform provides solo practitioners with a way to practice in the virtual legal world, and it allows a space for attorneys to join together as a virtual law firm. Even some experienced partner-level attorneys have opted for a virtual law firm practice rather than the traditional firm environment. While some legal websites offer limited legal services and access to legal forms, “full service” virtual law firms are structured and operate much like traditional law firms. Most now offer full legal representation and operate much like their “bricks and mortar” counterparts. Forces Behind the Rise of the Virtual Firm There are three driving forces behind this emergent trend: the public, the economy and advancements in technology. The public continues to demand effective legal services at a good value. This is not to say that traditional firms do not offer this value, but virtual law firms can provide an affordable alternative fee structure for consumers through the technology-driven streamlining of their businesses. Additionally, our struggling economy has affected just about every industry, and the legal industry is certainly not exempt. As a result, many recent law school graduates and unemployed attorneys have turned to virtual law firms for job opportunities. Seasoned partners, as well, are attracted to the virtual firm by the appeal of flexible hours without high overhead costs. In fact, some virtual law firms recruit only partner-level attorneys to avoid the high costs of training. The economy has forced both traditional and virtual law firms to reevaluate how they charge and market to clients in order to stay competitive. Similarly, both types of law firms must continue to integrate technical solutions into their business activities in order to have a viable presence in the future. For example, in Richard Susskind’s book, The End of Lawyers? Rethinking the Nature of Legal Services, he predicts “we will witness the end of many lawyers as we know and recognize them today and the birth of a new streamlined and technology-based generation of practicing lawyers who are fit for purpose in the twenty-first century.” A statement like this is a reasonable conclusion when looking at what is already occurring among attorneys and all types of law firms. Recognizing the importance of technology and its ability to modernize business practices, traditional law firms have gradually incorporated it into their business model. Likewise, the mere introduction of virtual law firms demonstrates the effect technology has and will continue to have on the legal environment. How Virtual Is Made Practical It’s interesting to note that most of the technology used by virtual firms is already in use at traditional firms. Many attorneys in the traditional setting use laptops to work from home and use their mobile devices to communicate with their clients and staff. In addition, traditional firms with multiple offices depend on technology to communicate and to establish a secure, cohesive business structure across all offices. The advances in technology over the past few years have made it easier for all attorneys to work anywhere — whether in a virtual or traditional law firm. Specifically, the introduction of software geared toward virtual law firms improves their ability to communicate and collaborate with colleagues, clients and opposing counsel. Companies such as Virtual Law Office Technology markets directly to virtual law offices and offers them tailored software as a service (SaaS) packages. Other technology offerings such as cloud computing and virtual deal rooms make it easier to manage and access client data, collaborate with other attorneys and conduct business over the Web. In addition, advancements in desktop sharing tools and videoconferencing allow firms to conduct meetings and share data instantly with clients and opposing counsel without having to incur costly travel expenses. As well, many legal technology vendors offer a variety of options for hosting client data, preparing electronic discovery and managing all aspects of what a traditional law firm IT department might handle. Virtual firms depend on these technology vendors to conduct business and keep overhead costs at a minimum. Outsourcing these services to legal technology vendors is not a new thing among traditional law firms. However, many firms are hesitant to use the latest technology, fearing it will not securely protect their client’s data. This will always be a concern, as it should be, for firms utilizing legal technology vendors or legal technology. Arguably, virtual law firms are more vulnerable to security breaches due to their exclusive reliance on these types of technology. In order for virtual firms to expand, technology must advance to become even more secure. Furthermore, the development of more collaborative and integrated technology resources must be at the forefront of future legal technology offerings. Peer to Peer the quarterly magazine of ILTA 63