Using Alternative Legal Service Providers (ALSP): A Look at Value and Benefits

The benefits of working with alternative legal service providers "ALSPs" (aka law companies) are lower rates, specialization, and efficiencies. Because of these benefits, use of ALSPs is growing. Some predict a 25% growth in outsourced legal services in the next few years.

The most common legal functions for which ALSPs are enlisted are electronic discovery and document review, due diligence, compliance, investigation support, regulatory response work, and contract lifecycle management.

Here are a few reasons to consider an alternative legal services provider for the right legal project.

Specialized expertise: Engaging ALSPs provide access to specialized expertise. ALSPs rely heavily on technology and project management and therefore deeply understand both. For volume legal work, these are helpful skills.

Technology: Most ALSPs heavily leverage technology. As a result law departments can rely on them to determine the best tool for the job, and offload software deployment and maintenance.

Efficiencies and Process: ALSPs also use project management techniques, documented workflows, and process automation. Because many of the legal projects they work on are repeatable and high volume, ALSPs are always refining and improving their processes.

Expand the Bench: ALSPs can also be used to “expand the bench” for legal departments and law firms via flex (temporary) staffing, and offloading tasks that are repeatable, or require less legal analysis so in-house counsel and law firm lawyers may focus on “higher touch” legal tasks.

Value: As they say, “money talks” and it is no secret that companies often turn to ALSPs to trim costs. We were curious to know the real value of using an ALSP and took a look at what we actually saved our clients and customers.

We examined the work we did over an 18 month period for an insurance industry client for which we handle subpoena compliance and managed document review. The results: savings to the tune of almost $400,000. (To see how we did it, click on the infographic to the right).

Percipient ALSP landing page infographic

Have more questions about ALSPs? Let us know!