| The Legal Industry & Information Technology | | | | Security - A lot of the information a legal |
| | | | firm handles is highly sensitive client |
| Like all other industries, the legal industry | | | | information, which it is bound my business |
| is not insulated from the tremendous changes | | | | ethics and contracts to protect. Since this |
| in information technology over the past | | | | information is mostly accessed and |
| decade, and the challenges and opportunities | | | | distributed over the public network of |
| it presents. If anything, the changes have | | | | internet, and often distributed to third |
| more bearing on law firms & departments | | | | parties at some page, security is right at |
| because information management is at the core | | | | the top as a concern. Â |
| of what they do - consulting with clients, | | | | |
| colleagues or experts; increasing compliance | | | | Access Control - Another level of security is |
| & regulation demands, wading through a | | | | the ability to manage who sees what |
| constantly expanding sea of legislation and | | | | information and what they can do with it. |
| case law; managing outsourcing partners; | | | | Since multiple parties like attorneys and |
| keeping abreast with latest developments; or | | | | associates across the company, outsourcing |
| managing a mountain of matter files. | | | | partners, and multiple clients access |
| | | | information from the firm's central storage |
| Recent Trends | | | | this is of prime importance. Â |
| | | | |
| Perhaps the most significant change in the | | | | Productivity Applications - Although managing |
| legal services industry the decline of | | | | documents and information is one of the most |
| "relationship lawyering". | | | | important things a law firms IT systems need |
| | | | to do, it is not all. They also need the |
| Recent times have seen increased competition, | | | | ability to manage and share schedules, to |
| & changes in underlying market structure. | | | | maintain lists of important contacts, to |
| There has been a continuing trend of decline | | | | manage and track different tasks and |
| of "relationship lawyering". Traditionally | | | | litigations teams or individual attorneys may |
| strong relationships between law firms and | | | | be involved with, or billing management. |
| corporates are eroding, with more companies | | | | Â |
| opting for in-house legal departments, or | | | | |
| "shopping around" for the best deal. Another | | | | What They Don't Need |
| significant trend is the increasing | | | | |
| convergence of legal markets, where | | | | 41% of lawyers had no IT staff at any |
| competition is as likely to come from a firm | | | | locations for their firm, while 17% have one |
| in another state or overseas as from a local | | | | person, 8% have two, and 38% have three or |
| firm. These & other developments are exerting | | | | more |
| greater pressures on legal firms to be more | | | | |
| efficient, an it is imperative that attorneys | | | | ABA Law Tech Report 2006 |
| spend their time analyzing information, | | | | |
| rather than organizing or managing it. | | | | IT Hassles - If getting all the above goodies |
| | | | requires setting up a specialized IT |
| Drivers of Technology Adoption by Legal Firms | | | | department, installing expensive hardware, |
| | | | and managing ongoing maintenance and |
| Possibilities of Technology - The primary | | | | upgrades, it might just not be worth it for a |
| driver of greater use of information | | | | small to mid sized law firm. Bigger firms |
| technology by legal firms is developments in | | | | have the deep pockets and incentive to set up |
| technology itself. New technologies & greater | | | | dedicated systems, but it might not be |
| bandwidths allow great possibilities in the | | | | sustainable for smaller firms. Â |
| arenas of information management, | | | | |
| productivity and remote collaboration. | | | | Complexity - To ensure that attorneys embrace |
| Information can be moved over the internet | | | | the IT system, attorneys should be able to |
| with greater security. And unlike yesteryear, | | | | concentrate on the information itself, rather |
| law firms can access these technologies | | | | than grappling with the nitty-gritties of the |
| without hefty costs and the need to set up | | | | system. |
| specialized IT departments.  | | | | |
| | | | Costs - Cost, of course is a top |
| In 2004, Forrester Research Inc estimated | | | | consideration for small to mid sized |
| that some 39,000 legal jobs will have moved | | | | companies across industries. The ongoing |
| offshore by the end of 2008. | | | | costs and hefty capital investments needed |
| | | | for custom and enterprise systems are just |
| Outsourcing/Offhsoring - Legal firms are now | | | | out of reach. |
| increasingly open to legal process | | | | |
| outsourcing of tasks they traditionally held | | | | The Software-as-a-Service Advantage for Legal |
| close - research, transcription, coding and | | | | Companies - HyperOffice as a Case in Study |
| even legal research and the drafting of legal | | | | |
| documents. It is commonplace to see a NY | | | | SAAS allows firms to pay for using the |
| based law firm, subletting research work to a | | | | software rather than owning it |
| team of professional lawyers & paralegals in | | | | |
| Bangalore, India. This enables firms to | | | | About eight to ten years back, it was true |
| majorly cut down costs & concentrate on core | | | | that access to the above technologies was |
| legal functions. But it also necessitates a | | | | available only to huge firms whose budget and |
| greater need to communicate, collaborate & | | | | scale justified dedicated IT departments. |
| monitor the functioning of outsourcing | | | | Times have changed since then. The software |
| vendors hundreds or thousands of miles away. | | | | as a service (SAAS) approach, allows even |
| Security is also an issue, since performance | | | | small to mid sized firms easy access to big |
| of the services often requires access to | | | | business technologies, but without having to |
| regulated consumer data or other sensitive | | | | deal with the messy underbelly and huge costs |
| data. | | | | associated with them. |
| | | | |
| In 2004, almost 60% of lawyers worked at | | | | Benefits of SAAS Solutions |
| multi-office firms and over 10% of lawyers | | | | |
| work at firms with ten or more offices. | | | | -Â Â Â Â Â Â Â |
| | | | Â Â Low Implementation |
| Geographic Diversification - As mentioned | | | | |
| before, there is a distinct movement towards | | | | -Â Â Â Â Â Â Â |
| multiple office firms, with offices spread | | | | Â Â Cost Effective |
| both nationally and globally. US based | | | | |
| companies are now serving many foreign | | | | -Â Â Â Â Â Â Â |
| clients, or serving foreign interests of | | | | Â Â Flexible |
| domestic clients. There was a significant | | | | |
| presence of international clients in even the | | | | -Â Â Â Â Â Â Â |
| smallest law firms of 1 to 20 lawyers. There | | | | Â Â Mobile Access |
| has also been a spate of global mergers and | | | | |
| acquisitions of law firms in the new | | | | -Â Â Â Â Â Â Â |
| millennia. All this necessitates a greater | | | | Â Â Enterprise Class Features |
| need for communication, collaboration and | | | | |
| information exchange between branches. | | | | -Â Â Â Â Â Â Â |
| | | | Â Â Backup & Security |
| Regulatory Compliance - Since the | | | | |
| implementation of Sarbanes Oxley Act came | | | | -Â Â Â Â Â Â Â |
| into effect, records management has become an | | | | Â Â Updates & Enhancements |
| essential requirement. Organizations are | | | | |
| required by law to retain certain documents | | | | Software as a service (SAAS) is an approach |
| for predefined periods. Also, the amendments | | | | where the software vendor undertakes the |
| to Federal Rules of Civil Procedure went into | | | | burden of creating, hosting, maintaining and |
| effect on December 1, 2006, and apply to any | | | | securing the application upon himself, and |
| firm involved in litigation in the U.S. | | | | further lets it out to customers over the |
| Federal Court system. The amendments mandate | | | | internet as a service.  Customers |
| that companies be prepared for electronic | | | | do not pay for owning the software itself but |
| discovery. Firms have to drastically alter | | | | rather for using it. Some specific benefits |
| the way they preserve, retrieve and produce | | | | of the SAAS approach are as follows:- |
| electronic data. | | | | |
| | | | No Implementation, No Dedicated IT Department |
| Competition is coming both from firms spread | | | | - Since the backend is taken care of by the |
| across the nation & the globe, as well as | | | | vendor, users don't have to bother about |
| consultants & advisors who were traditionally | | | | hardware, software downloads, server |
| not considered part of the "legal industry" | | | | security, configuration etc. Implementation |
| | | | cycles of months are cut down to just a few |
| Competition - Because of the death of | | | | days. For example, HyperOffice just requires |
| relationship lawyering, and "one stop | | | | a sign up, and customers can get it up and |
| shopping" by clients, firms cannot afford to | | | | running within minutes. |
| be complacent anymore. Moreover, competition | | | | |
| is as likely to come from the opposite end of | | | | Cost Effective: Scale Up & Down as Needed - |
| the country or globe, as from local | | | | The cost structure of SAAS solutions is |
| companies. Competition is also coming from | | | | usually a reasonable monthly per user fee. |
| other quarters, consultants and advisors who | | | | This ensures that minimal costs are locked |
| offer services that were previously the | | | | in, unlike enterprise solutions where tens of |
| purview of lawyers. In this arena of | | | | thousands of dollars are committed. Moreover, |
| intense competition, lawyers have to double | | | | there is no cost uncertainty, as terms are |
| up as "rainmakers" & networkers (legal | | | | clearly laid out, which allows for greater |
| business development) in addition to | | | | predictability. |
| traditional roles. Â | | | | |
| | | | Big Business Features - A range of big |
| IT Needs of the Legal Industry | | | | business functionality is available to users, |
| | | | but they don't have to bother about the |
| Centralized Document Storage - The legal | | | | complex backend which goes with implementing |
| profession generates a tremendous amount of | | | | this functionality, since that is the |
| digital information in the form of case | | | | vendor's headache. |
| files, contracts, court filings, exhibits, | | | | |
| evidence, briefs, agreements, bills, notes, | | | | Flexibility & Mobility: Keep Connected Always |
| records and other office activity such as | | | | - These solutions are developed with a view |
| email. This information is the firm's | | | | to delivery over the web. This ensures that |
| collective knowledge & learning which sets it | | | | the system with full functionality is |
| apart from competition and needs to be | | | | available over simply a web browser, saving |
| retrieved again and again. Compliance also | | | | users from tiresome downloads or |
| requires certain documents to be stored & | | | | implementations on local workstations. |
| retrievable for extended periods of time. | | | | Moreover, since these solutions are children |
| Attorneys across different offices need to | | | | of the internet & mobility era, they also |
| access and collaborate on this information. | | | | allow access over mobile devices. HyperOffice |
| Â | | | | allows almost full functionality over many |
| | | | mobile device with internet access including |
| In 2007, 53% percent of lawyers used a PDA | | | | iPhone. |
| outside of the office, 32% to check e-mail. | | | | |
| | | | User Friendly - Ease of use is of prime |
| ABA Law Tech Report 2007 | | | | importance to a non techie attorney. SAAS |
| | | | solutions are out-of-the-box. Emphasis is on |
| Remote Access - Ready access to crucial | | | | ease of use, with the messy backend taken |
| documents and information can sometimes be | | | | care of. The entire HyperOffice solution can |
| all the difference between a favorable or | | | | be managed from a central console and needs |
| adverse judgment. Lawyers now have wings on | | | | no technical expertise at all - truly child's |
| their feet visiting clients, interviewing | | | | play! |
| experts, or attending outstation court | | | | |
| proceedings, and are often out of office. It | | | | Backup & Security: Let the Experts Handle It |
| is important that they are able gain LAN like | | | | - Ensuring security and disaster preparedness |
| access to documents from the firm's | | | | requires effort. Antivirus software needs to |
| repository even when they're not at the | | | | be purchased and implemented, the system |
| office premises. Â | | | | needs constant monitoring, and physical |
| | | | security of the servers needs to be ensured. |
| Document Collaboration - It is not enough to | | | | Disaster recovery plans also have to be put |
| only be able to access documents from the | | | | in place in case of events like fire, natural |
| firm's storage. A single case file may need | | | | disasters etc. Backup servers and magnetic |
| multiple inputs from attorneys with different | | | | tapes have to be maintained, frequency of |
| expertise, clients, experts, researchers, and | | | | backups has to be managed etc. Whew! |
| other associates spread over the country or | | | | |
| even the globe (in case of outsourcing). | | | | With SAAS, all this is a part of the messy |
| Therefore it is important to have the ability | | | | backend taken care of by the vendor. |
| to concurrently access and work together on | | | | Moreover, these vendors have developed an |
| the same file, from right where everybody is. | | | | expertise hosting and securing applications, |
| Â | | | | since this is their core operation. This is |
| | | | an expertise a mid sized law firm can not, |
| Remote Conferencing - Sometimes the ability | | | | nor would like to develop. |
| to collaborate on a document may not suffice | | | | |
| and actual discussion and knocking together | | | | Updates & Enhancements - Since it application |
| of heads might be needed. Web conferencing | | | | resides on the vendor's servers, the vendor |
| allows multiple people to get together in a | | | | can simply add updates, enhancements and new |
| virtual meeting room and discuss issues as | | | | features at his own end which are instantly |
| effectively as being there in person. | | | | available to the users of the application. |
| | | | |