Ready for Takeoff? Eighteen Observations on eDiscovery Business Confidence in the Spring of 2021

In the spring of 2021, 60.0% of eDiscovery Business Confidence Survey respondents felt that business climate conditions will be better in six months. This is 10.0% higher than sentiment in the winter of 2021, where 50.0% of survey respondents felt that the business conditions would be better in six months. This is also the highest percentage of respondents who felt that business conditions would be better in six months since the initiation of the survey in the winter of 2016.

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Content Assessment: Eighteen Observations on eDiscovery Business Confidence in the Spring of 2021

Information - 95%
Insight - 95%
Relevance - 100%
Objectivity - 95%
Authority - 95%

96%

Excellent

A short percentage-based assessment of the qualitative benefit of the recent post highlighting observations on eDiscovery business confidence.

Editor’s Note: The results of the recent Spring 2021 eDiscovery Business Confidence Survey present the continuing impact of COVID constraints on the business of eDiscovery. However, for these pandemic-driven results and their potential impact on the business of eDiscovery to be fully understood, they should be viewed through the contextual lens of the results of all twenty-two surveys that have been administered to eDiscovery professionals since the inception of the eDiscovery Business Confidence Survey in early 2016.

Initiated in January 2016, the survey has been administered twenty-two times with 2,432 individual responses. The latest survey was administered in the spring of 2021 and had 100 respondents.

The Business of eDiscovery in the Spring 0f 2021

The eDiscovery Business Confidence Survey is a nonscientific quarterly survey designed to provide insight into the business confidence level of individuals working in the eDiscovery ecosystem. The survey consists of nine core multiple-choice questions focused on factors related to the creation, delivery, and consumption of eDiscovery products and services. Additionally, the survey contains three optional questions focused on the business operational metrics of days sales outstanding (DSO), monthly recurring revenue (MRR), and revenue distribution across customer bases.

Specific survey questions include:

  • Which of the following segments best describes your business in eDiscovery?
  • How would you rate the current general business conditions for eDiscovery in your segment?
  • How do you think the business conditions will be in your segment six months from now?
  • How would you guess revenue in your segment of the eDiscovery ecosystem will be six months from now?
  • How would you guess profits in your segment of the eDiscovery ecosystem will be six months from now?
  • Of the six items presented below, what is the issue that you feel will most impact the business of eDiscovery over the next six months?
  • In which geographical region do you primarily conduct eDiscovery-related business?
  • What are best describes your primary function in the conduct of your organization’s eDiscovery-related business?
  • What are best describes your level of support in the conduct of your organization’s eDiscovery-related business?
  • How would you characterize the trajectory of your organization’s Days Sales Outstanding (DSO) during the last quarter?
  • How would you characterize the trajectory of your organization’s Monthly Recurring Revenue (MRR) during the last quarter?
  • Which of the following statements best describes the distribution of your organization’s revenue across your customer base during the last quarter?

The latest survey was administered in the spring of 2021 and had 100 respondents in roles that included executive leadership (31.0%), operational management (39.0%), and tactical execution (30.0%). Industry segments represented in the survey included software and service providers (37.0%), law firms (25.0%), consultancies (16.0%), corporations (9.0%), governmental entities (8.0%), media and research professionals (3.0%), and others (2.0%).

Based on the aggregate results of twenty-two surveys, the following findings and charted overviews of responses to survey questions may help in understanding the collective mindset of many industry experts regarding the business of eDiscovery.

Eighteen Survey Observations

Observations on Business Conditions (Charts 1-4)

Business Climate (Chart 1 and 2)

  • In the spring of 2021, 92.0% of eDiscovery Business Confidence Survey respondents felt the current business conditions are good or normal. This combined confidence level represents a 7.0% increase in these same feelings when compared to the winter of 2021 where 85.0% felt the conditions were good or normal.
  • Exactly 57.0% of survey respondents characterized the current business climate as good. This represents an increase from 43.3% of respondents who viewed the business climate as good in the winter of 2021. This increase from the winter of 2021 may represent a strong optimism in the current general business climate for eDiscovery.
  • Only 8.0% of respondents classified the current business condition as bad. This represents a decrease of 7.0% in this area over the last quarter. This is also the lowest percentage of respondents viewing the current business conditions as bad since the beginning of the COVID-19 pandemic in the spring of 2020.
  • In the spring of 2021, 60.0% of eDiscovery Business Confidence Survey respondents felt that business climate conditions will be better in six months. This is 10.0% higher than sentiment in the winter of 2021, where 50.0% of survey respondents felt that the business conditions would be better in six months. This is also the highest percentage of respondents who felt that business conditions would be better in six months since the initiation of the survey in the winter of 2016.
  • The number of survey respondents that felt the business conditions will remain the same in six months decreased moderately to 37.0%.
  • The number of respondents expecting the business climate of eDiscovery to be worse in six months decreased slightly to 3.0% in the spring of 2021, down 2.0% from the winter of 2021. This percentage of respondents who felt the business climate will be worse in six months appears to portray a decreasing COVID concern regarding business confidence.

Revenue Expectations (Chart 3)

  • In the spring of 2021, 52.0% of survey respondents felt that revenue in the next sixth months will be higher than today. This percentage is slightly higher than sentiment on this metric in the winter of 2021 (51.7%) and represents continued cautious optimism.
  • 40.0% of the survey respondents felt that revenue in the next six months would not change. This represents a strong increase of 5.0% quarter over quarter from 35.0% in the winter of 2021.
  • The percentage of respondents who felt that revenue in six months will be lower than today decreased to 8.0% in the spring of 2021. This percentage also is the lowest percentage of respondents who felt this sentiment in this area since the beginning of the COVID-19 pandemic in the spring of 2020.

Profit Expectations (Chart 4)

  • 44.0% of survey respondents felt that profits will be higher in six months than they are today. This is a solid increase from the winter of 2021 when 41.7% of respondents estimated profits to be higher in six months.
  • The percentage of respondents who felt that profits will be the same in six months decreased slightly quarter over quarter from 43.3% in the winter of 2021 to 43.0% in the spring of 2021.
  • The percentage of respondents who felt that profits in six months will be lower than today decreased slightly quarter over quarter, with 13.0% expressing this sentiment in the spring of 2021, as opposed to 15.0% in the winter of 2021. However, this percentage is the lowest percentage of respondents with this sentiment in this area since the beginning of the COVID-19 pandemic in the spring of 2020.

Observations on Business Impact Factors (Chart 5)

  • In the spring of 2021, 25.0% of respondents viewed budgetary constraints as potentially having the greatest business impact on their business in the next six months. This percentage is the highest of all concerns represented in the spring 2021 survey This percentage is the lowest rating in the area of budgetary constraint concerns since the beginning of the COVID pandemic in the spring of 2020. It also should be noted that the four highest ratings of budgetary constraints as a primary concern for survey respondents have all occurred during the current COVID-19 pandemic, beginning with the spring 2020 survey. This is also the fourteenth time in twenty-two surveys that the issue of budgetary constraints has been the top concern or tied for the top concern by survey respondents.
  • The percentage of respondents that viewed increasing types of data as a top business concern increased in the last quarter from 16.7% in the winter of 2021 to 22.0% in the spring of 2021. This is the second-highest rating in the area of data type concerns since the inception of the survey in the winter of 2016.
  • Increasing data volumes continue to be a consistent concern for eDiscovery professionals with 19.0% of spring 2021 survey respondents viewing data volume challenges as potentially having a substantial impact on business in the next six months. This was a slight increase in this area from the 18.3% response rate in the winter 2021 survey.
  • The percentage of respondents viewing the impact of data security as a top business issue increased slightly from the last quarter and is now viewed as the top concern by 14.0% of survey respondents.
  • The impact of a lack of personnel on eDiscovery business performance strongly increased during the last quarter and is now the top concern for 11.0% of respondents, up from 5.0% in the winter of 2021.
  • In the spring of 2021, the impact of inadequate technology as the top business issue strongly increased by 5.7% from the last quarter and is now viewed as the top concern by 9.0% of survey respondents. This is the lowest rating of any business performance impact concern in the spring 2021 survey. It is also is the twentieth time in twenty-two surveys that the impact of inadequate technology has been rated as the lowest area of business performance concern by survey respondents.

Survey Charts

(Charts Can Be Expanded for Detailed Viewing)

Chart 1: How would you rate the current general business conditions for eDiscovery in your segment?
Subjective feeling of business performance when compared with business expectations.

1 – General Climate Overview – Spring 2021

Chart 2: How do you think the business conditions will be in your segment six months from now?
Subjective feeling of business performance when compared with business expectations.

2 – General Climate Overview + Six Months – Spring 2021

Chart 3: How would you guess revenue in your segment of the eDiscovery ecosystem will be six months from now? Revenue is income generated from eDiscovery-related business activities.

3 – Revenue Overview + Six Months – Spring 2021

Chart 4: How would you guess profits in your segment of the eDiscovery ecosystem will be six months from now? Profit is the amount of income remaining after accounting for all expenses, debts, additional revenue streams, and operating costs.

4 – Profits Overview + Six Months – Spring 2021

Chart 5: An Aggregate Overview of Issues Impacting eDiscovery Business Performance Challenges that may directly impact the business performance of your organization.

5 – Issues Impacting eDiscovery Business Performance – Spring 2021

Chart 6: Survey Participant Overview

6 – Survey Respondents (Individual and Aggregate Overview) – Spring 2021

Chart 7: Survey Participant Level of Support Overview

7 – Survey Respondents by Level of Support – Spring 2021

Chart 8: Survey Participant Industry Segment Overview

8 – Survey Respondents by Industry Segment – Spring 2021

Running Listing of Survey Results

Additional Reading

Source: ComplexDiscovery

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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.

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