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October 2013 Risks and Rewards

publication of the International Legal Technology Association

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A MANAGED RISK: OUTSOURCING XXXX PRACTICE SUPPORT SERVICES migration, it is an opportunity to perform some spring cleaning. If a data disposition plan is not already in place, I recommend formalizing one that distinguishes data between dormancy and a closed state. The latter should involve the three options that most vendors will provide to a client: 1) destroy; 2) return; and 3) maintain at some recurring monthly cost. For the former, this is a good time to look into tiered storage where the secondary storage facility can house dormant data that can be easily restored within a reasonable time. create a fee arrangement that mimics the service provider industry. services end; however, project management is not a service I am willing to outsource. Jackie: Do you envision a managed services contract including after-hours support? Jackie: Do you think a managed services provider should include a clause for a first right of refusal on new matters requiring external processing or hosting services? Why or why not? Sal: That would entail another level of service that one could tack on to the contract depending on the resources the solution provider has in place. If a law firm is looking to achieve a 24/7 service-level operation and costs are an issue, one way to deal Sal: That aspect of the service line is for the law firm to define as part of the service-level agreement. That would not work for organizations supporting an insourced model. The main driver of outsourcing is the need for infrastructure and services, not necessarily as an overflow support solution. Jackie: Security is a major concern when contemplating a managed services solution. What concerns do you have about data breaches and protecting client confidentiality? Jackie: How will these services be billed back to a client? Sal: The recovery of costs depends on the value system each law firm places on its internal e-discovery services. Some firms build in the cost as a value-add to other billing elements already in place, and yet other law firms have attempted to with this issue is to identify a managed services solution that can support overflow of an existing insourcing solution. The first thing to do is decide on which cross-section to extend through the managed services solution: administrative/technical support, transactional services or project management. I can see relying on an outside entity to provide after-hours support on the technical support and transactional Sal: Security is a very important part of the assessment process. Some clients require a certain level of certification, penetration testing and auditing before they would even contemplate sending over their data. If the solution is based solely on infrastructure and is the environment where all client data will reside, the security of the managed services solution should be assessed and tested by the law firm's IT personnel and tested against one or two of your corporate clients' security protocols. Clients will

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