Law in the Digital Age: The Rise of Alternative Legal Services

The growth of client demands amid recent economic challenges has fueled the rise of alternative legal services providers or ALSPs, with a recent report from Thomson Reuters citing they now make up a US $20.6 billion segment of the legal market and Australian law firms showing the most sophistication in their use. Law firms are either incorporating an ALSP internally or externally, especially for consultations on legal technology, and more and more clients are delegating work to these providers than traditional law firms.

The Difference Between ALSPs and Law Firms

ALSPs are businesses that provide specialised legal services focusing on the routinised elements of legal work. These routine tasks ensure the successful execution of legal matters and not the legal matters themselves.

ALSPs typically provide the following services:

  • Litigation and investigation support
  • Document review
  • Contract management
  • E-discovery
  • Intellectual property (IP) management
  • Due diligence
  • Compliance
  • Legal research

These providers can be standalone or housed within law firms. They are classified into three different types: Independent ALSPs, the Big Four and those that operate within law firms, called law firm captives.

  • Independent ALSPs – these providers are businesses solely dedicated to legal support services. They may be utilised for specific projects or on an ongoing basis, and are best suited for startups and small and medium-sized businesses.
  • The Big Four – the group refers to the four largest global accounting firms – EY, PricewaterhouseCoopers, Deloitte and Klynveld Peat Marwick Goerdeler. They offer a wide variety of critical legal support services and are preferred by larger global companies.
  • Law Firm Captives – these are specifically created law firm subsidiaries that offer alternative legal services. Many of these are focused on either software and product development or legal services targeted to innovation and consulting.

ALSPs combine cutting-edge technology with legal expertise while also cutting down on cost, making them a viable alternative for companies looking to reduce outside legal spending without reducing quality. Some ALSPs even offer temporary staffing solutions where legal advisors and consultants work with the business directly and in-house on a short to medium-term basis. 

Advantages of ALSPs

If you’re a startup or business, hiring an ALSP will not only save you time and money – it can also lessen stress. Here are some benefits you can expect when you tap alternative legal service providers.

Specialised services

Unlike traditional law firms, ALSPs focus on solving specific legal challenges. This specialisation allows them to develop precise strategies for the problem and hire not just lawyers but also multi disciplinary staff who can perform these tasks well using cutting edge technology. By tapping ALSPs, you’re dealing with people with specialised expertise in this type of high volume work and can expect high quality output from engaged employees.

Less legal spending

ALSPs don’t usually bill based on the time they spend on work, so you won’t have to worry about being charged extra for extended hours. Having a fixed price helps you keep your budgets on track, and because you know how much you’re paying up front, you won’t be surprised by high accruals.

Turn legal data into actionable business data

ALSPs utilise third party technology to select the best tools for their clients and develop proprietary systems for sustainable competitive advantage. As such, they can help optimise business operations and help legal departments achieve their strategic objectives by turning legal data into actionable data. ASLPs are in charge of technology selection and deployment, which unburdens the legal department while still allowing them to receive the benefits of its use.

In-house teams can focus on priorities

Unexpected organisational workload and admin level tasks can derail your in house team. Sending this type of work to ALSPs will free them up so they can concentrate on more important matters, like business critical projects and supporting the company in reducing legal risk. This also helps relieve the strain on understaffed corporate law departments, preventing burnout and high turnover rates.

ALSP Trend Continues to Grow

According to the Thomson Reuters report, ALSPs are likely to continue growing in the years to come. An increasing percentage of law firms are expected to maintain or increase their outside spending on ALSP services, with the hope of differentiating, scaling and expanding their business and improving client relationships through this additional provision.

New lawyers looking for a different career approach and working style are also eager to diversify their skill set by working with a multidisciplinary team and being at the helm of legal transformation. ALSPs offer a viable and exciting career opportunity outside a traditional legal pathway. 

As client demands grow and change, expect more firms to invest in these alternative services. It is an excellent way for them to innovate, modernise their operations and do things differently. Not only does it deliver greater flexibility in headcount and improve cost efficiency, but it also opens up possibilities for offering legal knowledge to existing or new clients who otherwise couldn’t afford the service.

As the legal market continues to evolve, the boundaries between alternative legal services providers, law firms, corporate law departments and even technology and software firms are rapidly blurring. ALSPs are particularly valuable as they can help law firms identify and implement the right technology solutions, as well as provide training and support, which is especially crucial for consulting on matters involving legal technology. 

However, it’s important to recognise that traditional law firms should not be undermined by ALSPs or vice versa – both have distinct roles that complement each other. Just as other industries have automations in place, ALSPs function for routine legal tasks, while law firms have that essential human touch and expertise in handling complex legal matters. 

Whether you’re a startup or small and medium sized business, Lazarus Legal can assist with all your legal requirements. As a full service law firm, we can help you navigate the law and overcome legal challenges, including providing in house legal advice and support. We offer a personalised and tailored approach to our fees so you can get the legal help you need without straining your budget.

Contact us today or sign up for our newsletter to stay informed about legal news, business trends, and more.

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Mark Lazarus

Mark Lazarus, the visionary behind the business and the fresh blood of the Lazarus Legal team, Mark (or Laz as he is often known) owes much of his success to his past experiences. And he’s made it his personal goal to bring that wisdom and formula to the firm.

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Barry Lazarus

CEO & Notary Public

barry@lazaruslegal.com.au 

We’d be lying if we told you that this bloke isn’t the big honcho of our team, but his name is a dead give-away. The founder of Lazarus Legal, Barry is an old school, tough as nails lawyer. They don’t forge litigators like this anymore.

With decades of experience in both Australia and South Africa, his wisdom is as renowned as his name. Back in the days when Schwarzenegger and Van Damme were kicking ass on VHS, Barry was kicking ass in the courtroom. And after all these years, he still has a reputation for refusing to back down.Barry is definitely the badass you’d want in a fight – in court or otherwise. But really, he’s a big softie. Just don’t let him know you know that (although he probably won’t read this anyway – navigating the Internet is not his strong point).

Aside from putting other lawyers in their place, taking long walks on the beach and spending time with his family, Barry enjoys seeing others succeed. Not only is Barry a staunch and unmoving litigator, he has sharp business and commercial acumen having started up ventures from scratch and growing them into full-blown franchises – from real estate to creating ice cream, to making pasta. With his experience on both sides of the commercial and legal equation, you want this guy to be on your side, whether you’re the next Zuckerberg realising your genius, or the next Zuckerberg taking on your opponents in court.

When Barry is not busy lawyering about, he is a part-time lawn bowler and a wannabe comedian, but never took both as a day job, because let’s face it, he’s a lot better at his day job.

If someone ever threatens you to lawyer up…relax, call Barry and he’ll handle the rest. 

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Mark Lazarus Director

Mark Lazarus

Director

mark@lazaruslegal.com.au 

The visionary behind the business and the fresh blood of the Lazarus Legal team, Mark (or Laz as he is often known) owes much of his success to his past stories and experiences. And he’s made it his personal goal to bring that wisdom and formula to the firm.

He’s a bit of jet setter, splitting his time between Australia and the UK, maximising every hour of his professional life. He thrives on this adrenalin. It allowed him to work in private practice in Sydney, act for a host of famous celebrities in London, do a two year stint as a NSW barrister (and not the pretentious coffee type in the Melbourne laneways) and more recently did a gig as the Legal Director covering Europe, the Middle East and Africa for one of the world’s coolest fast-moving consumer good brands!  

As an Aussie and UK lawyer and former barrister, Mark not only has the gift of the gab but he’ll walk the walk to prove it too. He likes to think he’s a bit like Harvey Specter or Michael Corleone, the main difference is you can actually retain him as your lawyer and consigliere. He’ll tell you how it really is and will take on any challenge head on. Although litigation and court advocacy comes naturally to him, commercial and IP is what gets his blood pumping! 

When Mark is not out there doing his thing, you will probably catch him chilling at home with his family, on the sidelines of the soccer (football) pitch cheering on his two boys, crawling through mud obstacles, or training hard at the gym. Passion and commitment is what drives Mark to succeed, along with his burning desire to disrupt the legal profession by finding new ways to change the game.

He has sights on the future. So if you’re breaking new ground, ahead of the times, and on the verge of something big, but you need someone who’s got your back and who can give you straight up advice, this is the guy you will want on speed dial.

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