In recent years, law firms of all sizes have marketed their firms to offer everything to everyone. However, the data suggests that clients prefer targeted services. In addition, the increasing complexity of some industries creates the need for high-quality legal expertise in certain areas. For this reason, microniches and demand for specialized legal services are expected to increase in 2021. The current transformation in the way legal services are delivered and consumed will continue in the future as client expectations continue to adapt. Companies that adopt new tools and processes are poised to become more resilient, flexible, and customer-centric, while those that don`t will struggle to stay relevant in a world that has changed for the better. The ABA recently published the TECHREPORT 2021. The analysis was carried out on the basis of the responses. We show how lawyers spend their money and identify strategic investment opportunities that match the new needs of the legal client. Customer expectations have been rising for years, but the call for change could reach a tipping point in 2021. Whether it`s an increased focus on “customer experience” or a focus on value-based services and tailored pricing models, law firms are stepping up their game to improve client service. Read the most comprehensive study on the current state of legal practice.
Learn how the pandemic has changed client expectations and the tools and processes businesses are using to adapt their businesses to a new, more flexible era of legal service delivery. As has become the norm for much of 2021, corporate clients have increasingly sought outside expertise to help them navigate these choppy waters, so typical corporate legal spending on outside lawyers in 2021 is higher than ever before – in fact, 35% higher than typical spending in 2016. We assessed how past challenges have led to opportunities to deliver more client-focused legal services in 2021 and beyond. As the global pandemic progresses, with new concerns about possible new virus variants and lockdowns, the global legal industry continues to fight back, trying to restore for the coming year something that is almost normal in work operations and customer service. The pandemic has accelerated the rapid adoption of technology and fostered new talent and hiring strategies in the legal landscape. Digital transformation is shaping the service industry and leading law firms are catching up. For example, back-office functions are changing as companies migrate legacy systems to the cloud, while virtual assistants take over day-to-day customer-facing tasks. New highly skilled process support roles have emerged to develop and manage new technologies.
Artificial intelligence is replacing workers who perform repetitive tasks and changing the roles of other lawyers. In addition, clients do not seem willing to sit down and wait for their law firm to figure it all out on their own. Increasingly, corporate legal departments are developing mechanisms to control, monitor and evaluate their legal expenditures and the effectiveness of legal service delivery. To this end, companies are expected to put more and more pressure on their external law firms in 2022 to demonstrate a higher level of efficiency and offer more innovative pricing and delivery processes. The #MeToo movement has also created an increased awareness of equality as a business issue in the legal industry. In 2021, the #MeToo Dialogue will push law firms to re-evaluate their gender equality policies, train their employees, and evangelize diversity and equality among potential clients and recruits. Law firms can also promote more women to higher positions within the firm. Clio`s 2021 Legal Trends Report gathers key insights into how legal departments have adapted to the challenging circumstances of the past two years and the strengths that will shape these services in the future. The report`s data shows that when it comes to financial spend, companies are focusing less on investing in physical office space and enhancing their digital capabilities with practice management software.
Survey data shows that lawyers are more likely to view lawyer management software as a significant expense (67%) and are more likely to spend on additional software in the future (61%). Office space was the place where law firms invested the least (27%). The impact of these investments suggests that the legal industry as a whole will be better prepared to create more technology-driven customer experiences. Looking at the global trends we`ve seen in the legal industry throughout 2021, we see that law firms have the opportunity to take advantage of new growth opportunities, but it won`t be an easy path. Over the past year, corporate clients have seen an increase in their legal needs, so total legal spending is expected to remain healthy through 2022. However, this increased share of the portfolio will only be given to law firms that can effectively use their budgets to help corporate legal departments solve the challenges they and their organizations will face in the coming year. We present up-to-date data on key business opportunities and hourly rates across geographies and business areas to provide your law firm with information that drives success.
