With the pandemic causing business priorities to shift, Alternative Legal Service Providers (ALSPs) are living the day. One area that is rising in popularity is flexible lawyers, who are able to provide in-house teams with a high level of expertise at a manageable cost. Players in this category will share with ALB how the epidemic is growing, how to stay competitive, and what the future holds.
The COVID-19 pandemic has forced organizations to rethink business models, and the legal market is no different. Firms and corporate law departments are increasingly looking for ways to reduce costs and increase workflow efficiency in the face of market uncertainty and growing customer and business expectations. their business. These considerations have driven traditional law enforcement to innovative and technology-focused solutions. Alternative Legal Service Providers, or ALSPs, have been effective. A 2021 Thomson Reuters Institute report estimated the total value of the ALSP sector at $14 billion by the end of 2019. The report found that law firms and corporations are more likely, to unable, to apply the expertise of ALSPs to follow the priority. more profitable operations while saving costs and satisfying customers at the same time.
In the general area of ALSP, providers of flexible legal services, which place lawyers and in-house offices for certain periods or projects – are starting to see their star . These services are not new, they have been around for several decades now, but there are signs that Asian markets are becoming more receptive to them.
According to Paul Garth, managing director of accounts and head of APAC at Vario by Pinsent Masons, a professional services provider led by law firms that include freelance lawyers and legal affairs management, the role of The pandemic and the lockdowns that have been made throughout are very important in it. facilitating this positive change in consumer attitudes towards ALSPs.
This overcomes the challenges that ALSPs have faced over time. As for contract attorneys, Garth acknowledges that job mobility will always be a disadvantage in certain markets, even across certain age groups. However, this idea breaks down when quality service is delivered.
Brett Menadue, head of Asia and the Middle East at Lawyers On Demand (LOD), which provides lawyers on a project basis to organizations in need of legal support, agrees that the increasing of demand for long-distance groups and distribution due to the pandemic has deepened the understanding of ALSP models, although the market was already growing before the outbreak of COVID.
“We’ve been working in Asia for over ten years, and in that time we’ve seen a mature approach to ALSPs,” said Menadue. “Initially, there were a few students but we are seeing more and more acceptance of the various activities. I think consumers are starting to see the results and word of mouth is a powerful referral network.”
One of the advantages of ALSPs is that the needs of consumers are becoming increasingly sophisticated. “There has been an increased awareness of what these multi-service offerings bring to the table as they have found value among discerning consumers. “Most providers now can offer more than just traditional legal advice,” says Garth.
The degree of ALSP approval and usage pattern varies across regions. Law firms in Australia demonstrate the most intelligent use of ALSPs, followed by their counterparts in the United States, Canada, and the UK. This is in line with LOD’s vision, but Menadue was under pressure from new markets.
“For example, our business in the United Arab Emirates is only five years old this year, but we have seen a strong acceptance in that country, due to the country’s progress in promoting innovative businesses such as per LOD,” Menadue said. New companies and large companies tend to carry interests across jurisdictions, in addition, with little institutional diversity.
THE DRIVE BREAK
The growing competition has made competition more intense as different players not only traditional legal service providers but also ALSP partners have to compete for market share. Vario says its secret sauce is its customers. As flexible resources are introduced across APAC, Garth believes that other service lines, such as corporate legal services, will lead Vario’s business growth in the coming years “due to strength of international buyers is driving the expansion in the region.”
Menadue also pointed out that strong relationships with customers have sharpened LOD’s competitive edge. “Each HQ team spends hundreds of hours each year building strong relationships with clients and business advisors,” believes Menadue, writing a successful model for a business that focuses on people who requires a lot of trust. The most important thing about a simple attorney referral is the quality of the attorneys being offered. To guarantee the delivery of the best service, especially during difficult times such as the COVID pandemic, Vario strives to maintain the strength of the necessary talent by reaching out to a strong referral network and promoting the benefits of flexibility.
“It is important to us that our legal advisors are examined not only for their technical skills but also for the soft skills that allow them to enter new situations and begin to optimize the value and less fuss,” says Garth.
Meanwhile, LOD claims to have an “extensive network of lawyers and consultants” with a wealth of in-house experience and marketing know-how, Menadue said.
The provider assigns a “high market value” when evaluating applicants. According to Menadue, the best candidates for the group are legal professionals who understand “not only the law, but also the business side, especially stakeholder management.”
“Due to increased demand for all experience levels, we have invested in a personal support model for our lawyers and consultants to ensure they are always supported by our excellent HQ people who work,” Menadue said.
When asked about the future of the market in Asia, Vario’s Garth said that he saw some short-term pain, because of “the lack of lawyers due to the closure of countries during the “epidemic” is poised to choke the river of wages forever. and thus consumes the resources drawn from consumers.
“We are optimistic about the future of the ALSP market in Asia. The demand for solutions from new customers and new customers in markets close to our headquarters is increasing. We will continue to work we and those clients in multiple jurisdictions across Asia and our corporate headquarters.
— Brett Menadue, LOD
“The ALSP market will continue to be driven by consumer demand,” Garth says, with increased capacity and supply chain sectors requiring solutions beyond legal advice. “This will be part of the answer, but not the whole answer.”
LOD’s Menadue makes a loud noise. “We are optimistic about the future of the ALSP market in Asia. There is an increasing demand for solutions from existing and new customers serving markets close to our headquarters. .We continue to work with those clients in multiple jurisdictions throughout Asia and at our headquarters.
“Uncertainty in some Asian markets” and “the right kind of inflationary pressure in the world” cannot stop the rise of the ALSP market, said Menadue before he added, “We are hopeful for the future that we will begin to see an increase in the market. normal activities as well – including international travel, tourism, and business activities.