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