Small law firms and solo practitioners are under more time constraints than ever before. As a result, many companies have realized that running all op
Small law firms and solo practitioners are under more time constraints than ever before. As a result, many companies have realized that running all operations in-house while providing a top-notch, client-centered experience is impossible.
This is where managed services for law firms may make a significant difference. Law companies can reap a variety of benefits by outsourcing specialized tasks to third-party suppliers, including higher efficiencies, improved security, and more.
- 1 What are managed legal services for law firms?
- 2 The benefits of managed services for law firms
- 2.1 It can boost your bottom line
- 2.2 The ability to streamline processes
- 2.3 Potential for heightened security
- 2.4 Helps you maintain compliance
- 2.5 Provides enhanced accessibility and improved collaboration
- 2.6 The opportunity to meet changing customer needs
- 2.7 Gain more flexibility as a business
- 2.8 Gain a competitive edge with managed services
What are managed legal services for law firms?
Any function that is outsourced to a third-party organization is referred to as managed legal services. These services might range from network monitoring to administrative and financial management for law firms. Managed services for legal firms, regardless of their nature, can significantly reduce the burden on lawyers.
The benefits of managed services for law firms
Managed services can benefit solo and small legal firms in a variety of ways. We’ll go through seven of the major benefits of outsourcing services to third-party companies in this article.
While managed services may appear to be an expensive investment for a small law firm, the reverse is true. Managed service providers can help you save money in a variety of ways. For one thing, by replacing pricey in-house gear and software, companies may drastically reduce overhead costs. A monthly charge might be paid for access to one’s own infrastructure.
Furthermore, managed services providers have highly specialized skill sets, allowing them to assist law firms in leveraging the latest advances and resolving challenges quickly. This guarantees that your organization functions as smoothly as possible, reducing the chances of disruptions that result in income loss. Managed services also eliminate the need to hire, train, and onboard new employees, resulting in even more cost savings for your law company.
That’s not all, though. Managed services providers with cybersecurity experience can assist prevent costly data breaches. According to a study by IBM, the average cost of these breaches is USD $4.42 million, which is the most it’s been in 17 years. There’s no denying that managed services for law firms can save you money—a lot of money.
The ability to streamline processes
Lawyers are well aware of how administrative tasks may choke up a day’s work. In reality, according to the 2021 Legal Trends Report, the average lawyer only billed 2.5 hours (31%) of an eight-hour work day in 2020. What’s the end result? Law companies spend far too much time on non-billable chores and far too little time practicing law, which can have a significant impact on your firm’s growth. It’s clear that simplifying complex processes and streamlining workflow is more crucial than ever, especially for solo and small legal firms.
Managed service providers can assist law firms in accomplishing this goal by taking care of time-consuming and unpleasant duties. They can also enable teams to operate more efficiently by adopting technological advancements. Lawyers, for example, are increasingly relying on automation to streamline the client intake process, and artificial intelligence and machine learning have proven invaluable in quickly sorting through vast volumes of legal papers.
Given the ease they bring, it’s no surprise that eDiscovery managed services are growing more popular than ever. These services, however, can be pricey in small and mid-sized instances. Clio’s integration with Discovery Genie has assisted in overcoming this barrier. Discovery Genie is an eProduction platform that helps litigators master their evidence, streamline document production, and more.
Potential for heightened security
Cyber attacks have evolved into a severe hazard to any business, including law firms. Law companies are at a higher risk of being targeted by hackers because they have such a large collection of sensitive data. According to the American Bar Association’s Legal Technology Survey Report, 29% of respondents reported a security breach in 2020. This risk has only been heightened by the rapid shift toward remote employment in the last two years.
The good news is that managed IT services for law businesses can ensure that the appropriate security measures are in place to detect and prevent any threats. This includes everything from password management and email security to remote monitoring technology that keeps an eye on a company’s network security.
Managed IT services can also provide on-demand access to specialists, in addition to taking proactive actions to protect data. This is especially beneficial for cloud-based law companies.
Helps you maintain compliance
It’s no wonder that the legal sector is closely regulated, given the extremely secret nature of legal work. There are numerous regulations and requirements to follow, whether it’s the Health Insurance Portability and Accountability Act (HIPAA) when evaluating a client’s medical records or the Payment Card Industry Data Security Standard (PCI DSS) while processing a payment.
The fact that the regulatory compliance landscape is constantly changing makes things even more difficult. Many law companies struggle to keep up with the current rules. Those who do not comply, however, risk huge consequences such as reputational harm, lost productivity, and costly fines, to mention a few.
Fortunately, managed service providers are well-versed in ensuring that legal firms adhere to all norms and regulations. Take, for example, Clio Payments. Clients can now pay their invoices using credit, debit, or eCheck more easily than ever before. Most crucially, all data processing, transmission, and storage is carried out in accordance with the highest level of certification available in the payments sector, ensuring that all transactions are PCI DSS compliant.
Clio-managed payment processing ensures that trust accounting and Interest on Lawyers’ Trust Accounts (IOLTA) regulations are followed. Monies in your trust account are safeguarded from all third-party debiting, including processing fees and chargebacks, because earned and unearned funds are kept separate.
Provides enhanced accessibility and improved collaboration
Legal practitioners frequently want quick access to important documents, whether in the courtroom or at the airport. Law companies can access information they need from any location thanks to managed cloud services. You will not be required to connect to a virtual private network (VPN).
Cloud services can also help teams achieve new levels of collaboration. Attorneys can securely access documents stored in the cloud at the same time as their colleagues using managed cloud services. This guarantees that distributed teams have a clear understanding of their progress and can see who is working on what. This cuts down on superfluous back-and-forth, allowing teams to operate more effectively.
The opportunity to meet changing customer needs
We’ve learned over the last two years that remote work has a variety of advantages, ranging from ease to flexibility. It’s no surprise, however, that according to Clio’s 2021 Legal Trends Report, 79 percent of customers look for remote choices when hiring a lawyer, up from only 23% in 2018.
As a result, legal firms are increasingly relying on cloud-based services to stay in touch with their clients. Law firms may give customers the flexibility to interact remotely, access their documents whenever and wherever they need them, and make payments online using cloud-based legal technology like Clio, for example—not to mention the peace of mind that their data is secure.
Gain more flexibility as a business
Network outages, server problems, and even slow internet can cause work disruptions in law companies. One of the most significant advantages of managed services for law companies is that they free up time for attorneys. This allows them to concentrate on what matters most to them: practicing law. They don’t have to be concerned about difficulties like these because professionals are working behind the scenes to prevent problems from occurring.
What’s the end result? Attorneys get the freedom to concentrate on growing their business and offering a better client experience. And it is this that will ultimately distinguish a legal practice from its competitors. Check out our CEO and Co-Founder Jack Newton’s book, The Client-Centered Law Firm, for more on the importance of putting clients first.
Gain a competitive edge with managed services
The advantages of managed services have become more evident as the business environment has become increasingly complex. Managed services for law firms can be a powerful tool for leveraging the latest technological innovations and eliminating time-consuming tasks.