Larger law firms running out of real estate

1 miltonThe economic recession led to an increased need for businesses of all sizes and in virtually every industry to refine practices and create more sustainable operations. As a result, many enterprises are turning to managed services for more streamlined approaches to a variety of critical corporate functions, including data archiving, storage and management.

Law firms have been moving to managed services at a rapid pace in recent years, especially following the inception and subsequent spread of eDiscovery proceedings and associated activities. Costs can be decreased and efficacy of a variety of responsibilities can be enhanced through the use of proven electronic litigation providers.

Another law firm makes the jump;

The American Lawyer recently reported that Kaye Scholer, a massive law firm, is the latest to relocate a high volume of employees to a less expensive area, as real estate costs have crippled the budgets of many law firms. According to the news provider, Kaye Scholer is moving its back-office staff members from New York City to Tallahassee, where they will work in a stand-alone operations center.
The firm’s decision is the latest in a variety of announcements from law firms regarding moves to decrease real estate costs and improve operational efficiency. The source explained that Allen & Overy, Bingham McCutchen and Pillsbury Winthrop Shaw Pittman have all made similar moves in the last two years, especially regarding the transfer of back office employees to new, more affordable destinations.

As commercial real estate prices continue to fluctuate, and other costs associated with enterprises in the legal industry skyrocket, such companies can often benefit from outsourcing certain tasks to managed service providers. This has been a common strategy in recent years, and can be especially helpful for law firms that do not have a broad knowledge base pertaining to legal IT, such as eDiscovery.

Saving money, improving turnaround;

Many in-house counsel do not have a background in data archiving, management, transfers, predictive coding and a variety of other responsibilities associated with eDiscovery. By outsourcing the tasks to an electronic litigation solutions provider, law firms can decrease the real estate necessary to have internal employees, while leaving these critical responsibilities to seasoned, specialized professionals.  Maybe even more important than the decreased costs, the turnaround on processing and other legal requirements following a eDiscovery request will be expedited, strengthening the firm’s ability to win cases and make the right decisions.

Sources used:

http://www.americanlawyer.com/PubArticleALD.jsp?id=1202586068289&slreturn=20130112172620

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