The oft-touted benefits of working with an ALSP (alternative legal service provider AKA law companies, legal services companies, etc.) are lower rates, specialization, and efficiencies. Because of these benefits, the use of ALSPs is growing. Indeed, some predict a 25% growth in outsourced legal work and alternative legal service providers market share in the next five years.
We were curious to know the real value of using ALSPs. So we put our money where our mouths are and took a look at what we actually save our clients and customers.
We took a look at 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 result: savings to the tune of almost $400,000.
Savings were realized not only from lower rates (and different types of rates) than those charged by other legal service providers, but efficiencies gained from specialization, technology expertise, and the use of documented, repeatable workflows and quality control measures.
Here is a handy infographic detailing the savings. (Click here or on the image to download a copy).