An official study on the 'NewLaw' market, termed ALSPs (Alternative Legal Service Providers) by Thomson Reuters is further proof of the increasing relevance and significance of this growing sector of the Legal Services market.
This report attempts to define ALSPs, explore the reasons for growth in the sector, identifies the key players and comments on the potential future development.
What is clear is that whilst some have embraced the offerings, there is still a long way to go. This is great news for clients, as I forecast that increased competition will lead to more innovation and drive better solutions to the challenges facing in-house departments and law firms globally.
This is a useful document to outline and explain this market and to help with considerations as to how ALSPs can be useful to your legal department.
This is still a developing, fragmented market. We’ve identified five main types of providers and an estimated market size in the table below. In addition to the legal Current use cases Areas of potential growth Law firm Corporation process outsourcing companies and e-discovery service and document review service providers that form the largest segment of the market, we see insourcing and staffing companies and the Big Four accounting and audit firms as large parts of the market. Smaller shares of the total $8.4 billion market are accounted for by law firm-owned affiliates and an emerging set of Managed Legal Service providers.