According to the team at Beau Dietl & Associates, budget pressures, escalating growth of Big Data and rising legal costs are making outsourcing litigation support a popular option for businesses. This includes outsourcing functions for back office, such as legal research, finance and accounting, M & A support and other duties to third parties.
Outsourcing legal processes helps companies effectively manage three emerging trends: expanding regulatory schemes, constant development of new data types, and concerns about cybersecurity:
- Regulatory Trends
On America’s regulatory front, both the SEC and the DOJ are increasing enforcement of the Foreign Corrupt Practices Act, thus encouraging companies to investigate internal concerns proactively and report violations.
In Europe, agencies are focusing on antitrust issues that are likely to increase the demand for e-discovery services. The EU uses its Directive on Antitrust Damages Actions to regulate voluntary disclosure of useful evidence. The UK’s new agency, the Competition and Markets Authority, investigates mergers and other behaviors that are anti-competitive in nature.
With regulatory activity on the rise, global businesses urgently need local discovery resources to handle increasingly complex e-discovery demands, and these resources should have the means to recognize and defensibly address the complex issues surrounding data privacy in many overseas countries.
- Data Trends
The complexity of different types of data, such as structured, mobile and social media data, is encouraging businesses and law firms to acquire assistance from qualified third parties. Many companies do not have the tools or time to manage data stockpiles, and as a result, they are demanding resources that hasten the process, such as advanced analytics and e-discovery experts.
Instead of investing in costly in-house training and tool acquisition, companies are utilizing the technology and knowledge of third parties to collect data, process valuable information and narrow down the pile of Big Data for first-level review.
- Cybersecurity Trends
With the prevalence of cybersecurity woes and data breaches, many businesses and law firms have valid concerns about how many providers are touching their data. Instead of shipping data to a variety of vendors during each stage of information discovery, which increases the risk of a breach, they are using a select few vendors who are able to provide extensive discovery services to consolidate the workload.
While various technology models, such as comprehensive managed services, custom managed services and backpack service models, address current trends in the market, they also offer companies other benefits. Businesses that outsource litigation support can simplify workflows, improve budget forecasting, reduce risk and improve compliance with regulatory and other legal processes.