Hidden Trends? Captivating Research on Captive ALSPs

According to the just-released report from Baretz+Brunelle, a new crop of competitors has started playing on law firms’ turf. These competitors use technology, alternative staffing models, and a focus on process to accomplish tasks more efficiently than law firms. They are known as “alternative legal services providers,” and they are racking up wins. Recent numbers show that revenue for ALSPs grew from $8.4 billion in 2015 to $10.7 billion in 2017, and that 71% of corporate legal departments now use so-called ALSPs.

en flag
nl flag
et flag
fi flag
fr flag
de flag
pt flag
ru flag
es flag

Content Assessment: Hidden Trends? Captivating Research on Captive ALSPs

Information - 100%
Insight - 100%
Relevance - 100%
Objectivity - 100%
Authority - 100%

100%

Excellent

A short percentage-based assessment of the qualitative benefit of the recent post highlighting new research from Baretz+Brunelle on ALSPs.

Baretz+Brunelle Research Uncovers Hidden Trend: 35% of Am Law 100 Firms Are Also Providing ‘Alternative’ Legal Services

Media Release*

The world’s largest law firms have been quietly mobilizing to recapture billions in revenue that has flowed in recent years to technology-driven upstarts known as alternative legal service providers, according to a report released today [October 6, 2020] by Baretz+Brunelle, a leading advisory firm to the legal industry.

According to Home Court Advantage: The Am Law 100 Moves Into Alternative Legal Services, 35 of the Am Law 100 have created in-house, or captive, ALSPs – a surprisingly large number that is projected to grow as firms position themselves to regain control from outside providers over a growing portion of the legal services market.

The study by Baretz+Brunelle’s NewLaw practice group offers the first comprehensive analysis of the underreported trend of captive ALSP creation, which could fundamentally alter traditional law firms’ business models in coming years.

It finds that law firms’ development of business units similar to ALSPs, which use technology to more efficiently perform routine tasks such as document review, and, increasingly, more sophisticated operations, is a global phenomenon. Among the 123 firms in the combined Am Law 100 and Global 100, Baretz+Brunelle found that 48 have created captive ALSPs.

Other key findings of the report include:

  • Among the captive ALSPs of Am Law 100 firms, 91% offer e-discovery services, but the majority offer additional services. Of the Am Law 100’s captive ALSPs, 37% offer only e-discovery.
  • International law firms’ captive ALSPs are more likely to provide more sophisticated services – such as contract review, intellectual property-related services, and mergers and acquisitions due diligence – than captive ALSPs of the U.S.-based Am Law 100.
  • The vast majority of Am Law 100 and (non-U.S.) Global 100 firms with captive ALSPs have made some effort to brand them – 86% and 92%, respectively.
  • Most large firms have not structured their captive ALSPs as separate businesses. Only 9% of captive ALSPs at Am Law 100 firms, and 15% of captive ALSPs at (non-U.S.) Global 100 firms are distinct business entities.

Commentary:

Brad Blickstein, partner and co-head of Baretz+Brunelle’s NewLaw practice group:

  • “You would expect law firms to be shouting from the rooftops about the new capabilities they are developing, but the market doesn’t know much about them. This frustrates their clients, too. The opaque nature of captive ALSPs made our research a challenge, but also means that the insights we’ve developed have a lot of value for those who want to learn.”
  • “Law firms got into this game late, but they have plenty of reason to be optimistic about their future in this line of business. As incumbents, they have advantages over ALSPs that they can and should be exploiting. We are very bullish about the opportunities that captive ALSPs provide for law firms.”

Beatrice Seravello, partner and co-head of Baretz+Brunelle’s NewLaw practice group:

  • “Change is hard for any organization, especially a tradition-bound law firm with many centers of power. The fact that so many have taken on the challenge of building a captive ALSP shows how urgent the business need is.” 

Launched in early 2020, Baretz+Brunelle’s NewLaw practice helps law firms thrive in the rapidly transforming legal industry. It is headed by partners Brad Blickstein, the author of the long-running and influential Annual Law Department Operations Survey, and Beatrice Seravello, who previously served in a variety of c-suite roles at Am Law 100 firms. Blickstein and Seravello are available to speak to the media about Home Court Advantage: The Am Law 100 Moves Into Alternative Legal Services. The survey methodology and full report are accessible online here.

About Baretz+Brunelle

Baretz+Brunelle helps businesses throughout the evolving legal marketplace to stand above. Our clients include elite law firms, premier legal tech companies, innovative alternative legal services providers and leading consulting firms. We provide corporate communications, digital marketing and NewLaw services with a laser-like focus on achieving our clients’ business goals. For nearly 20 years, we have helped our clients build brands, protect reputations, raise profiles, improve operations, enter new markets, launch new products and services, announce mergers and manage crises. With offices in New York, Boston, Charlotte, Chicago, Detroit, Houston, Kansas City, Los Angeles, Richmond, Va., and Washington, our team is made up of marketing and communications veterans, journalists, lawyers, chief operating officers and law department experts. We have been named the “Best PR Firm in the U.S. for Law Firms” by The National Law Journal, the “Best PR Firm for Law Firms” by The New York Law Journal, and the “Best Crisis Management Firm” by Legal Times. For more information, visit www.baretzbrunelle.com.

Read the original press announcement via Business Wire


Full Report – Home Court Advantage: The Am Law 100’s Move into Alternative Legal Services (PDF)*

Baretz+Brunelle NewLaw – Home Court Advantage

Click Here to Download the Report from Baretz+Brunelle


*Media Release and Full Report Shared By Permission from Baretz+Brunelle

Additional Reading

Source: ComplexDiscovery

Have a Request?

If you have information or offering requests that you would like to ask us about, please let us know and we will make our response to you a priority.

ComplexDiscovery is an online publication that highlights data and legal discovery insight and intelligence ranging from original research to aggregated news for use by business, information technology, and legal professionals. The highly targeted publication seeks to increase the collective understanding of readers regarding data and legal discovery information and issues and to provide an objective resource for considering trends, technologies, and services related to electronically stored information.

ComplexDiscovery OÜ is a technology marketing firm providing strategic planning and tactical execution expertise in support of data and legal discovery organizations. Registered as a private limited company in the European Union country of Estonia, one of the most digitally advanced countries in the world, ComplexDiscovery OÜ operates virtually worldwide to deliver marketing consulting and services.

A (Brand) New Approach? Considering the Framework and Structure of eDiscovery Offerings

Today’s eDiscovery providers may benefit from the lessons learned in the creation of the Sgt. Pepper’s Lonely Hearts Club Band album by creating a concept for branding and packaging their offerings within that brand in a connected, theme-based way that represents the offerings’ promise and capability in a way that is easy to understand and remember.

This fictionalized branding approach was developed from the intellectual exercise of trying to figure out a reasonable and memorable way to descriptively highlight the promise and capabilities of offerings typically delivered by full-service eDiscovery providers. It may not be completely comprehensive or fully normalized. However, the hope of sharing this branding example is that it might help those involved in the branding and communication of eDiscovery provider services and solutions.

Reveal And Brainspace Merge

According to Wendell Jisa, founder and CEO of Reveal, "Backed by...

eDiscovery Mergers, Acquisitions, and Investments in 2020

Since beginning to track the number of publicly highlighted merger, acquisition,...

Relativity Acquires VerQu

According to Relativity CEO Mike Gamson, "It's imperative that the legal...

eDiscovery Mergers, Acquisitions, and Investments in Q4 2020

From Nuix and DISCO to Exterro and AccessData, the following findings,...

A New Era in eDiscovery? Framing Market Growth Through the Lens of Six Eras

There are many excellent resources for considering chronological and historiographical approaches...

An eDiscovery Market Size Mashup: 2020-2025 Worldwide Software and Services Overview

While the Compound Annual Growth Rate (CAGR) for worldwide eDiscovery software...

Resetting the Baseline? eDiscovery Market Size Adjustments for 2020

An unanticipated pandemeconomic-driven retraction in eDiscovery spending during 2020 has resulted...

Home or Away? New eDiscovery Collection Market Sizing and Pricing Considerations

One of the key home (onsite) or away (remote) decisions that...

Five Great Reads on eDiscovery for January 2021

From eDiscovery business confidence and operational metrics to merger and acquisition...

Five Great Reads on eDiscovery for December 2020

May the peace and joy of the holiday season be with...

Five Great Reads on eDiscovery for November 2020

From market sizing and cyber law to industry investments and customer...

Five Great Reads on eDiscovery for October 2020

From business confidence and captive ALSPs to digital republics and mass...

Only a Matter of Time? HaystackID Launches New Service for Data Breach Discovery and Review

According to HaystackID's Chief Innovation Officer and President of Global Investigations,...

It’s a Match! Focusing on the Total Cost of eDiscovery Review with ReviewRight Match

As a leader in remote legal document review, HaystackID provides clients...

From Proactive Detection to Data Breach Reviews: Sensitive Data Discovery and Extraction with Ascema

A steady rise in the number of sensitive data discovery requirements...

A Running List: Top 100+ eDiscovery Providers

Based on a compilation of research from analyst firms and industry...

Issues Impacting eDiscovery Business Performance: A Winter 2021 Overview

In the winter of 2021, 43.3% of respondents viewed budgetary constraints...

Not So Outstanding? eDiscovery Operational Metrics in the Winter of 2021

In the winter of 2021, eDiscovery Business Confidence Survey more...

A Lifting of the Fog? Winter 2021 eDiscovery Business Confidence Survey Results

This is the twenty-first quarterly eDiscovery Business Confidence Survey conducted by...

High Five? An Aggregate Overview of Five Semi-Annual eDiscovery Pricing Surveys

As we are in the midst of a pandemic that has...