Dublin, April 13, 2023 (GLOBE NEWSWIRE) -- The "U.S. Alternative Legal Service Providers Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The U.S. alternative legal service providers (ALSPs) market size is expected to reach $23.04 billion by 2028 from $7.37 billion in 2022, growing at a CAGR of approximately 20.91%
Alternative legal service providers are organizations that offer legal services outside of the traditional law firm model. ALSPs play a crucial role in the legal industry. They offer to counsel to corporations and law firms with low cost and less time than traditional law firms.
People prefer alternative legal service providers (ALSPs) for low-risk and high-volume tasks. The term "Alternative" basically represents a substitute to the traditional service providers, i.e., recruiting an attorney at a law firm. U.S. alternative legal service providers market is challenging the dominant traditional law firms market and is eating up the chunk of work that went directly to law firms.
ALSPs are not only treated as an alternative these days and are portrayed as a class of highly skilled professionals chosen for high-volume tasks and to get the legal work done smoothly in less time.
Alternative legal service providers leverage low overheads and technology to offer their services with added advantages, i.e., efficiency at a low cost, simplicity, speed, flexibility, and a strong client focus.
These businesses typically pick up and enhance elements of legal processes to improve performance which has led to the emergence of new service categories over the years.
Alternative legal service providers do not operate as law firms but as legal services firms. Apart from performing high-volume tasks, the U.S. alternative legal service providers market provides key functions like financial management, client engagement, strategic planning, knowledge management, leveraging technology and data, and many other things.
STATE OF THE U.S. ECONOMY
The state of the U.S. economy can help determine the growth of the alternative legal service providers market. The economy in the near future appears to be a mixed bag.
On one side, looming recession & geopolitical issues, and on the other side COVID-19 is expected to impact how in-house lawyers manage their teams and accommodate their budgets in a cost-constrained environment. However, past performances are a window into how the U.S. alternative legal service providers market could pan out.
IMPACT OF COVID-19
The impact of the COVID-19 pandemic is propelling the desire among clients for ALSPs to deliver solutions within less time and at a low cost. The pandemic has the companies plunged into alternative legal service providers. Automation, cloud technology, and the adoption of AI emerge as drivers in the U.S. alternative legal service providers market during COVID-19.
IMPACT OF RECESSION
The recession is expected to be an agitator of growth for alternative legal service providers. As the next recession is on the prediction charts, its effect on the legal industry largely depends on the vendors' offerings and attributes. Their performance may be forecasted considering the industry's buying and selling trends. Digitally forward legal providers are more likely to be able to perform better during the period.
SUCCESS FACTORS
Value
Creating value and value propositions are central to the new age legal service delivery model. It typically depends on how the resources, pricing, finances, and investment are combined in the model. Models crafted to offer a portfolio variety at flexible and fixed prices with services delivered disintegrated and automated are likely to see success in the market.
Creating Agility
Agile workflow processes can be the key between the success and failure of alternative legal service providers, backed by diverse human resources. Ideally, they include junior lawyers, partners, professionals, paralegals, technologists, and technicians is essential to optimize cost and accelerate service delivery.
Injection of Investments
There has been a wave of funding just as alternative legal service provider operators become more innovative and technologically savvy, drawing recognition for their value-added editions of the traditional legal model from legal buyers and clients alike.
Further, investors are increasingly becoming aware of the impediments put in place by lawyers, resulting in division and shunned growth. As a result, the market has come far from being a young industry that witnessed transaction restrictions and has become the next 'new thing' powering the legal industry forward.
Moreover, the growth in the U.S. alternative legal service providers market has unraveled a slew of private equity investments.
Adoption of Artificial Intelligence & Cloud Technology
Adopting AI and cloud technology will enable ALSPs to work remotely and make the legal processes easy and smooth. Law firms benefit from adopting AI to produce highly standardized documents like robotic process automation and confidential agreements.
The advent of cloud technology allows applications to run smoothly on third-party servers without extensive in-house storage. ALSPs are investing in cloud technology, AI solutions, and cybersecurity, as these will make their work easy.
Raised Data Security & Privacy Concerns
The very nature of the law industry means it is under significant threat from security and privacy issues. Given that law, companies have access to huge volumes of IP and other confidential corporate/client information that could constitute trade secrets, insider information on M&As, personally identifiable data, approaches to litigation, and other privileged information, and handling significant funds.
Such factors make Law firms highly prone to breaches. Negligence of employees and external threats from foreign governments or competitors are some of the key risks that can lead to stolen information or disrupted legal functions.
Competitive Landscape
The U.S. alternative legal service providers market is witnessing a growing number of international law firms crediting the concept of legal service delivery. With innovations in legal service offerings, ALSPs are getting opted for as these services are procured where traditional operational models are outdated or fall short.
Vendors need to update their services to suit modern-day needs. Legal organizations such as Clifford Chance and Allen & Overy are reimagining and reinvigorating legal service delivery; hence they are likely to save themselves from acquisitions from large and dominating legal bodies. The disintermediation of legal work influences alternative legal service providers' success.
There will always be some measure of legal work that entails trained sophisticated lawyers with the right skill sets to carry out some of the jobs and can't be siphoned off. With clients increasingly moving further afield in the Rogers Diffusion Curve, lawyers and law firms will account for a less dominant share.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 205 |
| Forecast Period | 2022 - 2028 |
| Estimated Market Value (USD) in 2022 | $7.37 Billion |
| Forecasted Market Value (USD) by 2028 | $23.04 Billion |
| Compound Annual Growth Rate | 20.9% |
| Regions Covered | United States |
Premium Insights
Market Opportunities & Trends
- Shift of Focus to Delivery
- Injection of Investments
- Rise of Self-Service Functions
- Blurring Lines Between Traditional and Alternative Law Firms
- Adoption of Ai & Cloud Technologies
Market Growth Enablers
- Legal Departments in Overdrive
- Surge in Legal Spending
- High Dissatisfaction With Law Firms
- Intensifying Focus on Technology Adoption
Market Restraints
- Data Security and Privacy Concerns
- Lack of Proper Articulation of Client Challenges
- Misplaced Perceptions About Customer Value
- Resistance and Lack of Reconfiguration to Alsps
- Great Resignation in Legal Industry
Key Company Profiles
- Allen & Overy
- Axiom Law
- Elevate Services
- UnitedLex
Other Prominent Vendors
- Clifford Chance
- Consilio
- Epiq Systems
- Everlaw
- Exigent
- Greenberg Traurig
- Integreon
- KLDiscovery
- LegalZoom
- Lawyers On Demand
- Mindcrest
- Reed Smith
- Lumen Technologies
- Morae
- Orrick Herrington & Sutcliffe
- QuisLex
- Thomson Reuters
For more information about this report visit https://www.researchandmarkets.com/r/gw93bg
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