Outsourcing has been the go to tool for a lot of corporations to cut costs and associated headcount. There are countless industries which have been using outsourcing effectively in their battle to increase efficiency while reducing costs.
One industry which has been spared from the outsourcing craze has always been the business of law.
Of course...there are some specialized functions which a few law firms are outsourcing...but the movement is muted at best. The quality of the legal work outsourced has to be top notch...and it remains a risk to outsource to destinations like India, China or the Philippines.
That some law firms are doing it never the less is perhaps more due to the need to reduce billable hours (driven by their clients) than the belief that quality will remain unaffected.
At hourly rates of $ 350 and for Associates and going as high as $ 1000 for partner work clients are understandably more than ready to use any option at their disposal to reduce fees.
The legal industry is ready for a shakeup....and it looks like Artificial Intelligence (AI) will be the one who will do the shaking. IBM's Ross (powered by Watson) and its peers are making great strides in revolutionizing the business of law.
It is a matter of years now when Watson will go through thousands of documents in a matter of minutes. Due Diligence where a team of lawyers shifts through thousands of pages at snail pace might be a thing of the past much faster than the legal industry realizes.
Other areas on the chopping bloc are contract law, legal research , e-discovery and document automation.
The article below makes a good case that the best years for the business of law might be behind them. Read Here: Technology Will Clam The Work Of Senior Lawyers
The Legal Industry might not go the way of the phone book....but it might very well end up being a situation where better quality will be produced with much less lawyers.