An interview with Cornelius Grossmann, EY Global Law Leader, and Eric Laughlin, EY Global Legal Managed Services Leader, addressing the use of alternative legal service providers (ALSPs) and new operating models legal departments are considering.
Both the EY Law practices and Thomson Reuters Legal Managed Services, prior to its acquisition, conducted surveys that included how ALSPs were being used by in-house legal functions. What results really stood out for you?
Cornelius Grossmann: The “Reimagining the Legal Function Report 2019” was fascinating across a number of key subject areas, but one of the most significant findings was the increased interest in ALSPs. Results showed that while 33% of businesses are already outsourcing a wide range of legal function processes, a further 41% would consider doing so. This indicates a sizeable proportion of in-house legal functions looking to modernize their operations.
Eric Laughlin: This is reinforced by the findings of the Thomson Reuters report “Alternative Legal Services Providers 2019,” which saw US corporate legal departments using ALSPs in an expanded and more diverse way. In some cases, those businesses have already exceeded the 2021 projections for ALSP usage that they gave in the previous report in 2017.
It is perhaps no surprise, then, that with this increased interest, we saw revenues for ALSPs grew from $8.4 billion in 2015 to around $10.7 billion in 2017.
Read more of the interview here.