Legal managed services

December 20, 2022


Opinions & reflexions on legal industry


Until recently, companies faced with legal problems could either deal with them in-house via in-house lawyers or legal interims, or they could call on a traditional law firm.

The problem for a company with a legal department is that the workflow is often complex, very time consuming and subject to variations in intensity depending on the needs of the company. As a result, the company's legal department is either overworked or, in some cases, underutilized. It can also happen that the legal department simply does not have the skills required for a particular case.

Lawyers have an affordable hourly rate but must be hired, in general, on a full-time basis to be available 40 hours a week, regardless of whether there is enough or too much work. In addition they are limited by their language, subject matter and jurisdiction. Legal interims have similar limitations and, because of their temporary nature, are also more expensive.

Hiring a lawyer means dealing with a relatively opaque market, exposing oneself to an often expensive and unpredictable hourly rate with, on top of that, a reactivity, a respect of deadlines and a clarity in the deliverables perceived as perfectible.

Fortunately, new players have emerged, offering a new type of legal solutions (such as contract lawyers, legal advisors, legal management services, legal tech platforms, managed legal services and hybrid legal services.

The reason these new legal solutions have developed today is because the legal issues within companies have become more complex in recent years, in parallel with the general regulatory landscape. As a result, companies' expectations of the legal service provider have become higher and no longer match the service that a traditional law firm can offer.

The increase in managed legal services, known as Legal Managed Service (LMS), or the outsourcing of some or all of the legal functions related to business is part of this growing trend. This trend will lead to major changes in the structure of the legal services industry and the way solutions are delivered to clients.

Globalization, rapid technological development and economic pressures (both internal and external) mean that private companies and public authorities expect more from external consultants. This creates the opportunity for new entrants (such as alternative providers or, to some extent, the Big Four) to finally break into an environment that was previously dominated by traditional law firms.

Legal Managed Service

Managed legal services allow a company to have access to cutting-edge technology, expertise, and the ability to address issues of cost, service quality, and risk without having to build an in-house team trained in multiple dimensions of service (languages, legal subjects, and jurisdictions).

LMS is a solution for large-scale projects that need to be handled as quickly as possible and that are cost-sensitive and risky if not executed with the utmost care. This work requires the application of innovative technologies, a team of specialists in their respective fields and highly efficient processes that an in-house legal department very rarely provides and that traditional law firms are, for the most part, not equipped with.

The keys to the process

Here are the main keys:

  1. Transparency
  2. Efficiency
  3. State-of-the-art technology for fine control of each file

Today, these Legal Managed Services have become an increasingly popular service model as they allow clients to quickly and more cost-effectively utilize the wealth of multiple legal expertise by focusing on ad hoc projects, with full resources and at a reasonable price.

The main difference between a Legal Managed Service and a classic outsourcing is in the treatment of the provider:

Traditional outsourcing

Legal Managed Services

Solution imposed on the client

Collaborative implementation of services

Not very predictable, prices rarely fixed

Transparent and predictable, especially on prices

Variable quality and no KPI to measure it

Constant quality measurement, including KPIs

Weak integration of technologies such as LegalTech

Intensive use of technology

No end-to-end project management

Robust end-to-end project management

If the client chooses to use a traditional lawyer service, he or she may not have perfect information about what will be delivered, when it will be delivered, and who is the right person to handle his or her issue. In other words, the service provider controls most of the parameters of the service. On the other hand, if the client chooses to use a legal enterim, an hourly rate, generally less expensive, will apply but this service provider will remain limited by the number of hours per week, the number of languages and subjects known and finally, by the duration of his mission, which is essentially temporary. In this case, the client, who has access to the services of the legal interim, is able to exercise much greater and more direct control over the service provider.

In terms of control, the legal managed service is somewhere between these two models. Indeed, this model is based on the sharing of the management of operations between the service provider and the client. The client will not have direct control over the resources used by the service provider but is placed in a position to exercise validation and control, the profile of the expert in charge, over the final price, the delivery date and the scope.

In a Legal Managed Service system, the alignment of interests is the essence of the value proposition. The provider commits to being paid a fixed price agreed upon in the contract and to delivering results also agreed upon in the contract up front. As a result, the provider will have an incentive to work more efficiently in order to deliver the required service.

The Legal Managed service thus makes it possible to transfer the work to an external supplier at a controlled cost while keeping a control on all the aspects of the service.

As a Legal Managed Service, we are experts in work optimization processes, technology, project management and all legal issues necessary to develop your business.

GOlegal relies on its team of over 100 lawyers and legal experts and its experience in consulting, technology and services to help our clients achieve their goals while putting them first. Based on your needs, we assign the appropriate expert to each case.

As a client, you have full visibility and control over the proposed solution. In addition, you do not have to be directly involved in the day-to-day activities of the appointed provider as we are your contact and will be your project manager, file by file.

What are the main motivations for a company to turn to a Legal Managed Services?

1. The company needs legal support in a particular area:

The provider then acts as an extension of the client's in-house capabilities in a specific geographic region by supplementing its in-house team with field consultants. These consultants not only provide the hands-on, same-time zone support needed by the local sales and operations teams, but also provide local jurisdictional expertise, know-how and advice that the headquarters teams do not have, or do not have the capacity to provide effectively. This can take the form of market consultation, request for information (RFI), request for proposal (RFP), contract drafting and negotiation on site. Through local knowledge and specialist advice, the service provider will help the client to access the new market more quickly.

2. The company needs expertise that it does not have in-house:

The provider will work closely with the client to help them stay abreast of legal and regulatory frameworks that may impact their business, or that may expose them to new risks. For example, the provider helps the client develop and implement their compliance and risk management strategy by helping them develop an infrastructure that meets the needs of their business.

3. The firm has medium and large-scale legal projects outside its core practice:

The provider will rely on the use of technology, standardized processes and case studies to help the client manage a large number of projects or a large project without affecting the quality and accuracy of the work delivered. This provides the company with additional work capacity at a controlled cost and risk.

4. The company seeks to outsource very repetitive legal tasks, almost administrative:

The service provider will rely on standardized methods for all repetitive legal tasks so that the company can focus on legal issues with greater added value.

This model of managed legal services is both more thoughtful and efficient and provides clients with better value for money because the specific goals and needs of the client are at the heart of this model. A managed legal service provider invests time and effort in understanding these objectives and needs and puts in place a multi-disciplinary team with whom they work collaboratively to design and deliver tailored solutions.

GOlegal, is an innovative Legal Managed Services provider with resources in multiple jurisdictions supported by a robust IT infrastructure to meet all your requirements regardless of subject matter, jurisdiction or language.

Thanks to our team, all your deadlines will be respected because we plan everything from the very beginning of the project, to ensure that your expectations are met in time. We bring a pragmatic approach to provide you with a solution that is adapted and not theoretical. And of course, we apply a fixed-price pricing system that is known in advance.

We are competent to work with :

  • Scaleup & Innovators
  • SMEs & freelancers
  • Non-profit organizations (NPO)
  • Legal & Compliance Department

Mainly in fields of law such as;

  • Data protection (GDPR)
  • IT and Technology
  • Commercial and contract law
  • IP
  • Social and labour law
  • Corporate law
  • Real estate law
  • Tax
  • Criminal law and compliance
  • Distribution law
  • Banking and finance
  • Insurance law
  • Public and administrative law
  • Capital market
  • European law
  • Competition law
  • Energy and climate
  • Environment
  • Consumer protection
  • Private equity

If you would like to onboard a Legal Managed Service provider, we will be happy to respond within 24 hours.