Investing in Law Firm Workflow Efficiencies: The Case for ALSP Engagements

Originally seen as competition, law firms are now reaping the many benefits that Alternative Legal Service Providers (ALSPs)  offer. Used for similar operations as with legal departments, ALSPs assist law firms with repetitive tasks to allow them to provide better service to their clients, put a stronger focus on their core work, and increase overall profitability According to a  survey  conducted by the American Bar Association79 percent of law firms reported engaging ALSPs  in 2020. This increase in the use of ALSPs has also proven to be increasing the use of ALSPs, a major driver of law firm innovation.

ALSPs specialize in implementing project management for large amounts of work and integrate legal technology to promote efficiency, and law firms have realized the potential in engaging with ALSPs. While some firms contract outside ALSPs, others have opted to  establish their own ALSPs in-house, known as “captive ALSPs.” Technology is undoubtedly one of the top reasons a law firm opts to invest in ALSP engagements, and law firms can find a competitive advantage from using legal-tech services which is something many ALSPs have used to provide even more value. 

 Prior to making this investment decision, law firms should consider these key factors before choosing an ALSP:

1.      Many ALSPs are specialists in technology. Law firms commonly look to ALSPs for legal research, litigation or investigation support, and eDiscovery. But many firms rely on the expertise of an ALSP to advise on technology implementation and usage. Legal technology is becoming even more essential due to altering client expectations and, more recently, the COVID pandemic.

2.      ALSPs allow legal professionals more time to focus on their areas of expertise. ALSPs provide attorneys with more to meet their client’s needs, and focus on the work that requires their level of legal expertise that results in. When firms outsource the high-volume and low-risk recurring work, they can focus on increasing productivity and profitability.

3.      ALSPs promote fresh perspectives. When a law firm engages with an ALSP, they broaden their access to actionable information. ALSPs often pull information from a large variety of sources. Many law firms use ALSPs to provide their clients with a broader scope of solutions, which results in better outcomes.

4.      4. ALSPs are key to increased efficiency. One of the many ways to increase client satisfaction is to increase productivity and efficiency. ALSPs allow firms to deliver better legal service and allow more time to focus on ways to improve strategy. There is no doubt that ALSPs make legal service delivery more efficient.

There is no doubt that ALSPs have made significant inroads in the legal market in general, and especially with law firms.  As such, it is imperative that law firms carefully analyze their internal data to determine what work should be kept in-house, and what can be outsourced to ALSPs to make the investment worthwhile. To continue the discussion with us about how ALSPs fit into the legal landscape, join our webinar on 8/12!