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Alternative Legal Service Providers Market in US - Industry Outlook and Forecast 2020-2025

February 2020 | 181 pages | ID: A6B2A98C8F90EN
Arizton Advisory & Intelligence

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The US alternative legal service providers market is expected to grow at a CAGR of over 23% during the period 2019–2025.

The following factors are likely to contribute to the growth of the alternative legal providers market during the forecast period:
  • Focus Shifts to Delivery
  • Injection of Investments
  • Rise of Self-service Functions
  • Blurring Lines between Traditional and Alternative
  • Prevalence of Dissatisfaction with Law Firms
  • Intensifying Focus on Technology Adoption
The US alternative legal service providers market will grow at a staggering CAGR during the forecast period due to the intense business and regulatory changes driving the need for sweeping, company-wide transformations, and creating expansive hurdles for compliance and legal functions. While alternative legal services are currently in the nascent stage, they are driving a future focus that is centered on the growth and advancement of end-to-end solutions.

Alternative legal service providers increasingly appear on the horizon – they are mostly less expensive than in-house counsel and are better attuned to help confront legal struggles. Alternative legal service providers can aid with augmenting business operations and are thus gaining popularity. While historically in-house departments acted as low-cost alternatives to traditional law firms, the cost of conducting business and climbing salaries of law professionals is looming threats for in-house law management, thereby increasing the popularity of alternative legal services. Another major driver for their growth in the market has been that these services offer integrated solutions to more than merely legal challenges; they help corporations solve global business challenges (such as risk management, cybersecurity, and data privacy), making them attractive partners.

The study considers the present scenario of the US alternative legal service providers market and dynamics for the period 2019?2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The report covers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent companies operating in the market.

Market Segmentation by Providers
  • New Law Companies
  • Captive LPOs
  • Staffing/Recruiting and Contract Lawyer Companies
  • Others
Market Segmentation by Services
  • eDiscovery
  • Investigation and Litigation Support
  • Contract Management
  • Document Review and Coding
  • Legal Research
  • Regulatory Risk and Compliance
  • Others
  • Urban
Market Segmentation by End-users
  • Law Firms
  • Corporations
US Alternative Legal Service Providers Market: Segmentation

The market research report includes detailed segmentation by products, services, end-user, and geography. New Law firms have been the most disruptive players in the market, accounting for major work carried out in the document review and litigation spheres. There is a growing trend of building strong SLAs and utilization of performance metrics. With the growing openness of law firms, there comes a growing affinity for a blended approach to deliver services. This approach has been increasingly adopted across firms over the last couple of years. As law firms, big as well as small, look to reclaim their position in the market, they have been developing in-house alternative legal service providers that can afford them the ability to delve into more services. Major law firms typically have been able to invest in new technology, processes, and talent and can collaborate without disturbing the original practice-centric way of working by developing branches that sell these services. However, this is also working against their proliferation, slowing down the entry of players in the market. Hence, with technology becomes widespread, hybrid players have scaled back on their services offering and shifted focus on developing and offering legal tech to the wider market.

The proliferation of the internet and smart device, which have resulted in a data explosion, including social media, e-mails, instant messages, audio clips, voice notes, images. They have all made the collection and review extremely challenging and expensive when performed in-house, thereby driving the demand for tools and professionals outside of the traditional model toward specialty firms and technology companies. Further, security and data privacy regulations are having their effect on the market. As the US is continually refining eDiscovery laws via case rulings and the global privacy trend is having its bearing on American litigators, legal teams are under more pressure to keep atop protection or privacy obligations. Hence, the market is evolving at a rapid rate and faces possibilities of AI disruption. In order to survive, vendors in the market need to keep a tab on developments and refine services accordingly. The wave of consolidation that is a result of the presence of a large number of firms is expected to continue during the forecast period.

A shift in focus from brand status and services to efficacy, providing high viability on investments. The demand for document review and legal research continues to grow significantly. In an age where customer-centricity and differentiation are vital, several players are increasingly examining cost-benefit trade-offs. They are forsaking rote, administrative work by outsourcing it and focusing on high-value tasks and core competencies to their best potential, thereby increasing demand for alternative legal service providers. Another driver comes as a response to the threat of internal strife. As the industry struggles with talent and demand surpass capacity during episodic events, it is outsourcing certain tasks to reduce damages related to the lack of additional resources. The traditional legal industry has been battered by stupendous change, and large law firms have been ambushed with evolving technology and the expansion of corporate legal departments. As a result, the employment of alternative legal services is more prominent in large firms than in smaller ones.

Unlike law firms, corporates tend to employ one alternative legal service provider or partner with them along with a law firm. There is a lesser likelihood of using different alternative legal service providers. This is expected to create a demand for services, which can be “all things to all people.” This has led to alternative legal service providers operating in the market taking huge strides to provide high value instead. However, a barrier in the market specifically among small and medium-sized corporations’ departments is the hesitancy to hire managed legal services personnel, especially lawyers. Hence, not only corporations and law firms have increased their use of alternative legal service providers, but they have also evolved how they use

Key Vendor Analysis

Alternative legal service providers have essentially entered the landscape around 2000, evolving with spurts across two time periods: from 1999-2007 wherein outsourcers such as Axiom, Integreon, and Exigent made their way into the market. The market is witnessing a growing number of global law firms, which are imparting credibility to the concept of legal service delivery. With clients increasingly moving further afield in the Rogers Diffusion Curve, lawyers and law firms will account for a less dominant share.

Key Vendors
  • Allen & Overy
  • Axiom
  • Elevate
  • UnitedLex
Other Prominent Vendors
  • BlackStone Discovery
  • Clifford Chance
  • Consilio
  • Driven
  • Epiq
  • Everlaw
  • Exigent
  • Greenberg Traurig
  • Integreon
  • KLDiscovery
  • LegalZoom
  • Lawyers on Demand (LoD)
  • Mindcrest
  • Reed Smith
  • Legility
  • Lumen Legal
  • Morae Global
  • Orrick
  • QuisLex
  • Thomson Reuters
Key Market Insights

The analysis of the alternative legal service providers market sizing and growth opportunities for the forecast period 2020–2025.
  • Provides comprehensive insights on the latest industry trends, market forecast, and growth drivers.
  • Includes a detailed analysis of market growth drivers, challenges, and investment opportunities.
  • Delivers a complete overview of market segments and the regional outlook of the market.
  • Offers an exhaustive summary of the vendor landscape, competitive analysis, and key market strategies to gain a competitive advantage in the market.
1 RESEARCH METHODOLOGY

2 RESEARCH OBJECTIVES

3 RESEARCH PROCESS

4 SCOPE & COVERAGE

4.1 Market Definition
  4.1.1 Inclusions
  4.1.2 Exclusions
4.2 Base Year
4.3 Scope of The Study
4.4 Market Segments
  4.4.1 Market Segmentation by Service
  4.4.2 Market Segmentation by End-user
  4.4.3 Market Segmentation by Provider

5 REPORT ASSUMPTIONS & CAVEATS

5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 MARKET AT A GLANCE

7 INTRODUCTION

7.1 State of the US Economy
7.2 success Factors
7.3 Trends in the Overall Legal Industry

8 MARKET GROWTH ENABLERS

8.1 Legal Departments in Overdrive
8.2 Expanding Legal Spends
8.3 Prevalence of Dissatisfaction with Law Firms
8.4 Intense Focus on Technology Adoption

9 MARKET RESTRAINTS

9.1 High Data Security and Privacy Concerns
9.2 Lack of Proper Articulation of Client Challenges
9.3 Misplaced Perceptions About Customer Value
9.4 Resistance and Lack of Reconfiguration to Alternative Legal Service Providers

10 GROWTH OPPORTUNITIES & TRENDS

10.1 Focus Shifts to Delivery
10.2 Injection of Investments
10.3 The Rise of Self-service Functions
10.4 Blurring Lines between Traditional and Alternative

11 MARKET LANDSCAPE

11.1 Market Size & Forecast
11.2 Five Forces Analysis
  11.2.1 Threat of New Entrants
  11.2.2 Bargaining Power of Suppliers
  11.2.3 Bargaining Power of Buyers
  11.2.4 Threat of Substitutes
  11.2.5 Competitive Rivalry

12 BY SERVICE

12.1 Market Snapshot & Growth Engine
12.2 Market Overview
12.3 e-Discovery
  12.3.1 Market Size & Forecast
12.4 Investigation and Litigation Support
  12.4.1 Market Size & Forecast
12.5 Contract Management
  12.5.1 Market Size & Forecast
12.6 Document Review and Coding
  12.6.1 Market Size & Forecast
12.7 Legal Research
  12.7.1 Market Size & Forecast
12.8 Regulatory Risk and Compliance
  12.8.1 Market Size & Forecast
12.9 Others

13 BY PROVIDER

13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 New Law Companies
  13.3.1 Market Size & Forecast
13.4 Staffing and Contract Lawyer Companies
  13.4.1 Market Size & Forecast
13.5 Captive LPOs
  13.5.1 Market Size & Forecast
13.6 Others
  13.6.1 Market Size & Forecast

14 BY END-USER

14.1 Market Snapshot & Growth Engine
14.2 Market Overview
14.3 Law Firms
  14.3.1 Market Size & Forecast
  14.3.1 Large Firms - Market Size & Forecast
  14.3.2 Mid-sized Firms – Market Size & Forecast
  14.3.3 Small Firms Market Size & Forecast
14.4 Corporations
  14.4.1 Market Size & Forecast

15 COMPETITIVE LANDSCAPE

15.1 Competitive Scenario

16 MARKET VENDOR ANALYSIS

16.1 Market Ranking Analysis

17 KEY COMPANY PROFILES

17.1 Allen & Overy
  17.1.1 Business Overview
  17.1.2 Major Product Offerings
  17.1.3 Key Strengths
  17.1.4 Key Strategies
  17.1.5 Key Opportunity
17.2 Axiom
  17.2.1 Business Overview
  17.2.2 Major Service Offerings
  17.2.3 Key Strengths
  17.2.4 Key Strategies
  17.2.5 Key Opportunity
17.3 Elevate
  17.3.1 Business Overview
  17.3.2 Major Service Offerings
  17.3.3 Key Strength
  17.3.4 Key Strategies
  17.3.5 Key Opportunities
17.4 UnitedLex
  17.4.1 Business Overview
  17.4.2 Major Service Offerings
  17.4.3 Key Strengths
  17.4.4 Key Strategies
  17.4.5 Key Opportunity

18 OTHER PROMINENT VENDORS

18.1 BlackStone Discovery
  18.1.1 Business Overview
  18.1.2 Service Offerings
  18.1.3 Key Strengths
  18.1.4 Key Strategies
18.2 Clifford Chance
  18.2.1 Business Overview
  18.2.2 Service Offerings
  18.2.3 Key Strengths
  18.2.4 Key Strategies
18.3 Consilio
  18.3.1 Business Overview
  18.3.2 Service Offerings
  18.3.3 Key Strength
  18.3.4 Key Strategy
18.4 Driven
  18.4.1 Business Overview
  18.4.2 Service Offerings
  18.4.3 Key Strengths
  18.4.4 Key Strategies
18.5 Epiq
  18.5.1 Business Overview
  18.5.2 Service Offerings
  18.5.3 Key Strengths
  18.5.4 Key Strategies
18.6 Everlaw
  18.6.1 Business Overview
  18.6.2 Product Offerings
  18.6.3 Key Strengths
  18.6.4 Key Strategies
18.7 Exigent
  18.7.1 Business Overview
  18.7.2 Service Offerings
  18.7.3 Key Strengths
  18.7.4 Key Strategy
18.8 Greenberg Traurig
  18.8.1 Business Overview
  18.8.2 Service Offerings
  18.8.3 Key Strengths
  18.8.4 Key Strategies
18.9 Integreon
  18.9.1 Business Overview
  18.9.2 Service Offerings
  18.9.3 Key Strengths
  18.9.4 Key Strategies
18.10 KLDiscovery
  18.10.1 Business Overview
  18.10.2 Service Offerings
  18.10.3 Key Strengths
  18.10.4 Key Strategies
18.11 LegalZoom
  18.11.1 Business Overview
  18.11.2 Service Offerings
  18.11.3 Key Strengths
  18.11.4 Key Strategies
18.12 LOD (Lawyers on Demand)
  18.12.1 Business Overview
  18.12.2 Service Offerings
  18.12.3 Key Strengths
  18.12.4 Key Strategies
18.13 Mindcrest
  18.13.1 Business Overview
  18.13.2 Service Offerings
  18.13.3 Key Strengths
  18.13.4 Key Strategies
18.14 Reed Smith
  18.14.1 Business Overview
  18.14.2 Service Offerings
  18.14.3 Key Strengths
  18.14.4 Key Strategies
18.15 Legility
  18.15.1 Business Overview
  18.15.2 Service Offerings
  18.15.3 Key Strengths
  18.15.4 Key Strategies
18.16 Lumen Legal
  18.16.1 Business Overview
  18.16.2 Service Offerings
  18.16.3 Key Strengths
  18.16.4 Key Strategies
18.17 Morae Global
  18.17.1 Business Overview
  18.17.2 Service Offerings
  18.17.3 Key Strength
  18.17.4 Key Strategy
18.18 Orrick
  18.18.1 Business Overview
  18.18.2 Product Offerings
  18.18.3 Key Strengths
  18.18.4 Key Strategies
18.19 QuisLex
  18.19.1 Business Overview
  18.19.2 Service Offerings
  18.19.3 Key Strengths
  18.19.4 Key Strategies
18.20 Thomson Reuters
  18.20.1 Business Overview
  18.20.2 Product and Service Offerings
  18.20.3 Key Strengths
  18.20.4 Key Strategies

19 REPORT SUMMARY

19.1 Key Takeaways
19.2 Strategic Recommendations

20 QUANTITATIVE SUMMARY

20.1 By Service
20.2 By Provider
20.3 By End-User

21 APPENDIX

21.1 Abbreviations
List Of Exhibits
Exhibit 1 Segmentation of Alternative Legal Service Providers Market in US
Exhibit 2 Market Size Calculation Approach 2019
Exhibit 3 Overview of the Alternative Legal Service Providers Market
Exhibit 4 Innovations Sought from Law Firms by Priority 2019
Exhibit 5 Impact of Legal Departments in Overdrive
Exhibit 6 Factors Negatively Affecting Legal Functions 2019
Exhibit 7 Impact of Expanding Legal Spends
Exhibit 8 Overview of Legal Spends 2019
Exhibit 9 Legal Services Market in the US by Category 2019 and 2020 ($ billion)
Exhibit 10 Impact of Prevalence of Dissatisfaction with Law Firms
Exhibit 11 Impact of Intense Focus on Technology Adoption
Exhibit 12 Statistics on Interest in Technology and its Adoption in Legal Service Delivery 2018
Exhibit 13 Impact of High Data Security and Privacy Concerns
Exhibit 14 Statistics on Security Concerns 2018 & 2019
Exhibit 15 Impact of Lack of Proper Articulation of Client Challenges
Exhibit 16 Impact of Misplaced Perceptions About Customer Value
Exhibit 17 Impact of Resistance and Lack of Reconfiguration to Alternative Legal Service Providers
Exhibit 18 Impact of Focus Shifts to Delivery
Exhibit 19 Impact of Injection of Investments
Exhibit 20 Impact of The Rise of Self-service Functions
Exhibit 21 Impact of Blurring Lines between Traditional and Alternative
Exhibit 22 Alternative Legal Service Providers Market in US 2019–2025 ($ million)
Exhibit 23 Five Force Analysis 2019
Exhibit 24 Incremental Growth by Service 2019–2025
Exhibit 25 Alternative Legal Service Providers Market in US by Service ($ million)
Exhibit 26 Alternative Legal Service Providers Market in US by Service 2019 & 2025 (% share)
Exhibit 27 Alternative Legal Service Providers Market in US Growth Comparison by Product 2019–2025
Exhibit 28 Alternative Legal Service Providers Market in US by eDiscovery 2019–2025 ($ million)
Exhibit 29 Estimated Litigation Spending Growth in US by Segment 2020
Exhibit 30 Alternative Legal Service Providers Market in US by Litigation and Investigation Support 2019–2025 ($ million)
Exhibit 31 Alternative Legal Service Providers Market by Contract Management in US 2019–2025 ($ million)
Exhibit 32 Alternative Legal Service Providers Market in US by Document Review and Coding 2019–2025 ($ million)
Exhibit 33 Alternative Legal Service Providers Market by Legal Research in US 2019–2025 ($ million)
Exhibit 34 Alternative Legal Service Providers Market by Regulatory Risk and Compliance in US 2019–2025 ($ million)
Exhibit 35 Alternative Legal Service Providers Market by Others in US 2019–2025 ($ million)
Exhibit 36 Incremental Growth by Provider 2019–2025
Exhibit 37 Alternative Legal Service Providers Market in US by Provider 2019?2025 ($ million)
Exhibit 38 Alternative Legal Service Providers Market in US by Provider 2019 and 2025 (% share)
Exhibit 39 Alternative Legal Service Providers Market in US - Comparison by End-user 2019-2025 (% share)
Exhibit 40 Alternative Legal Service Providers Market in US by New Law Companies 2019–2025 ($ million)
Exhibit 41 Alternative Staffing Strategies Employed by Law Firms in 2019
Exhibit 42 Alternative Legal Service Providers Market in US by Staffing and Contract Lawyer Companies 2019–2025 ($ million)
Exhibit 43 Alternative Legal Service Providers Market in US by Captive LPOs 2019–2025 ($ million)
Exhibit 44 Alternative Legal Service Providers Market in US by Others 2019–2025 ($ million)
Exhibit 45 Incremental Growth by End-User 2019–2025
Exhibit 46 Alternative Legal Service Providers Market in US by End-User 2019-2025 ($ million)
Exhibit 47 Alternative Legal Service Providers Market in US by End-users 2019 and 2025 (% share)
Exhibit 48 Alternative Legal Service Providers Market in US – Comparison by End-user 2019-2025
Exhibit 49 Alternative Legal Service Providers Market in US by Law Firms 2019–2025 ($ million)
Exhibit 50 Alternative Legal Service Providers Market in US by Large Law Firms 2019–2025 ($ million)
Exhibit 51 Large Law Firms Employing Alternative Legal Service Providers for Top Services 2019 (% share)
Exhibit 52 Alternative Legal Service Providers Market in US by Mid-sized Firms 2019–2025 ($ million)
Exhibit 53 % of Mid-sized Law Firms Employing Alternative legal service providers for Top Services 2019
Exhibit 54 Alternative Legal Service Providers Market in US by Small Law Firms 2019–2025 ($ million)
Exhibit 55 % of Small Law Firms Employing Alternative legal service providers for Top Services 2019
Exhibit 56 Legal Department Statistics 2018-2019
Exhibit 57 Alternative Legal Service Providers Market in US by Corporations 2019–2025 ($ million)

LIST OF TABLES

Table 1 Key Caveats
Table 2 Currency Conversion 2013?2019
Table 3 Select Current and Emerging Legal Technologies 2019
Table 4 Market Ranking Analysis 2019
Table 5 Allen & Overy: Service Offerings
Table 6 Axiom: Service Offerings
Table 7 Elevate: Service Offerings
Table 8 UnitedLex: Service Offerings
Table 9 Alternative Legal Service Providers Market in US by Service ($ million)
Table 10 Alternative Legal Service Providers Market in US by Service (%)
Table 11 Alternative Legal Service Providers Market in US by Provider ($ million)
Table 12 Alternative Legal Service Providers Market in US by Provider (%)
Table 13 Alternative Legal Service Providers Market in US by End-User ($ million)
Table 14 Alternative Legal Service Providers Market in US by End-user (%)


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