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