• Home
  • News
  • Legal Futurist: ‘The Party is Now Over’

Law Practice Management

Legal Futurist: ‘The Party is Now Over’

Posted Nov 11, 2008 9:20 AM CST
By Debra Cassens Weiss

A futurist argues that the legal profession is about to undergo a “fundamental transformation” in which conventional legal advisers will be much less prominent and legal services will be “commoditized” and delivered more cheaply.

The man making the predictions is Richard Susskind, the author of The End of Lawyers? He told the Am Law Daily that legal work has been increasingly profitable for the past decade or two, but times are changing.

“The party is now over,” he said. “The credit crunch is going to accelerate change in the legal profession, bringing much more demanding and discerning clients who increasingly will require more work at lower fees. And I believe that lawyers, in order to survive and prosper, must respond creatively and forcefully to this impending demand.”

Susskind predicts in the Am Law interview that more legal work will be outsourced, and more clients will collaborate to share the costs of some legal services, such as regulatory compliance. In England, where a new law allows nonlawyers to invest in legal businesses, he predicts a new practice model.

Nonlawyer managers “will explore call centers, outsourcing to India, online legal services, the automatic generation of documents, and much more,” he told the publication.

“And when clients see that legal services can be delivered more cheaply, efficiently, quickly, and to a higher quality using new methods and business models, then they will ask the same of traditional law firms, wherever they are located.”

Comments

1.

B. McLeod
Nov 11, 2008 10:15 AM CST

Except that for LITIGATORS, it will be TALL cotton.  Don’t WORRY, Ellen.  THAT work is NOT going to be OUTSOURCED to India.  Your boyfriend and Managing Partner will agree with me.

2.

A. lawyer
Nov 11, 2008 10:18 AM CST

Omg, a preemptive Ellen Barshavsky post!

3.

Neil
Nov 11, 2008 12:01 PM CST

Susskind is correct, there are smart lawyers in India, and China too, that can work for a fraction of current costs.  As for litigation, that too will go by the wayside as mediation and other alternative dispute resolution measures become the norm.  The reason? Business and the public know that justice is not served by litigation, which has become little more that a high brow pissing contest.

4.

J.D.
Nov 11, 2008 2:35 PM CST

Define “smart.”

5.

Eric G.
Nov 11, 2008 3:51 PM CST

Exactly; what is smart? And lets not forget the costs of overseeing work being done in another county. I don’t know what Susskind’s background is, but his familiarity with professional conduct leaves me wondering. ON a MORE interesting note, THANKS for the PREEMPTIVE CANARY POST!

6.

Ellen Barshevsky
Nov 11, 2008 5:26 PM CST

I am sorry to be LATE to the party, but I am not makeing that much money that I have to WORRY about outsourcing my job. 

The manageing partner likes me to be around, and that way I can do all the heavy liffting on the cases, write the motions and eventuelly he will let me ARGUE the motions, too.

If I was in INDIA, how could I file NOTICES of appearances and subeanas and interogatory requests, let alone all of the telephone calls, and DEMAND request I do for him EVERY DAY. 

My boyfriend agrees the COST would be VERYhigh for all of the telephone bills, and the FEDEX and everything else.

I was successful on my motion last week, so the manageing partner will let me sit with him at the plaintiffs table on the next litigation.

7.

Joe G.
Nov 11, 2008 6:21 PM CST

Notice there is no real attempt to establish a link between the financial crisis and the “more demanding and discerning clients.”  Susskind is selling a book and abajournal wants to sell ad revenue with a titillating headline.  Nothing to see here, folks.

8.

Lisa Solomon
Nov 13, 2008 9:57 AM CST

“Outsoucing” does not always mean sending legal work overseas. In fact, there is an active and growing community of independent U.S.-based contract lawyers.

The ABA’s recent ethics opinion concerning a lawyer’s obligations when outsourcing legal and nonlegal services can be found at http://www.abanet.org/cpr/08-451.pdf. This opinion is good news for independent U.S.-based contract lawyers and the firms that use their services.

Independent US-based contract lawyers generally provide unique, individualized services (such as substantive legal research and writing) to small firms and solo practitioners. This type of work is less subject to commoditization than document review work for corporations or large firms, and it’s this commoditized work that forms the majority of legal work that is shipped abroad. Thus, while Op. 08-451 may represent a threat to US-based contract lawyers who do document review through staffing agencies, it can only be a boon to independent US-based contract lawyers. And because it explains the benefits of using contract lawyers, analogizes contract lawyers to associates (but without the overhead), and and clearly states that it is ethical to earn a profit on the work performed by contract lawyers, it should ease concerns about the use of contract lawyers that are no doubt on the minds of many attorneys who could benefit from outsourcing.

The ABA’s position on outsourcing in Op. 08-451 is consistent with the favorable position it took in Ops. 88-356 and 00-420. The vast majority of state and local bar associations have followed the earlier opinions in whole or part, and I expect that they will follow Op. 08-451 as well.

9.

Ellen Fan
Nov 14, 2008 5:42 AM CST

Ellen Barshevsky needs her own blog.

10.

Mike2
Nov 14, 2008 6:33 AM CST

There is a lot of work around where companies only get the legal advice for CYA reasons. Susskind may be right for anything that is standard, commoditized advice.

He is wrong otherwise - the world does not get less complex simply because clients want to spend less. Legal structures will continue to demand some of the best brains around. There is a lot of tailer-made advice needed - and I do not see why that would change.

Since that complex advice can only be given well by real experts, the top legal talent has nothing to worry about.

11.

paul k
Nov 14, 2008 6:52 AM CST

Hmmm. Sounds all well and good until some plaintiffs lawyer brings a class action against the firms using India and China and then a sympathetic judge looking out for the brethren rules that yes indeed the damaged plaintiff class is entitled to recover a gabillion dollars from the malpractice insurance companies and the lawyers who outsourced the work thus leaving malpractice carriers to drop anyone using foreign lawyers from whom they can not recover.  The clients will love the low cost at first and then when they lose this will be the basis for the plaintiff’s class action. Back to the crystal ball . . .

12.

Steve Perkins
Nov 14, 2008 7:14 AM CST

Wow… here’s a guy who makes his living selling books and “consulting services” to law firms, and he’s arguing that firms must urgently turn to such books and services to survive.  Shocking.  Hey, ABA Journal… if I start up a car service, can I get you to run an article about the career risk of lawyers getting DUI’s, and how they should all employ a car service?

13.

Al Tidom
Nov 14, 2008 7:20 AM CST

Very interesting stuff. And I love the Ellen Barshevsky post!  Kudos!

14.

George
Nov 14, 2008 7:30 AM CST

Very interesting that the author claims that “legal services can be delivered more cheaply, efficiently, quickly, and to a higher quality…”  I disagree.

When it comes to legal services, as is much in life, there is GOOD, FAST and CHEAP - you can get 2 of the 3, but not all at once.

15.

Robert
Nov 14, 2008 7:53 AM CST

Yeah right. There have been far worse economic situations in the past that have had the opposite effecton the legal profession.  It sounds to me like the “futurist” has no experience in the practice of law.  If the practice of law was nothing more than crunching numbers, I might buy into the article. But, I know better.

16.

Tony
Nov 14, 2008 8:03 AM CST

Susskind may not be correct, but the legal profession needs to change and change fast.  The large firm business model is not sustainable.  These large law firms have a lot of expensive mouths to feed, and how many businesses can afford to keep paying the fees that required to keep the doors open? 

The ABA needs to start limiting the supply of lawyers as well.  Take a cue from the AMA and stop accrediting every damn law school in the country. But that’s a separate topic…

17.

A
Nov 14, 2008 8:11 AM CST

Conceptually this is interesting, but practically there are many challenges.  Malpractice insurance, supervision, and increasingly a weak dollar will all slow this effort. Additionally, what is the risk of a company losing its IP if attorneys in India have access to it?  Who is really paying the malpractice insurance?  Most of the attorneys don’t understand colloquial English, what will be the impact?  Take a look at the recent Fulbright study, few people are outsourcing today. Plus contract attorneys are numerous and relatively cheap in a bad economy.

18.

Ron Phillips
Nov 14, 2008 8:27 AM CST

Take a close look at IT, an industry that has been dealing with outsourcing for some time. There are definitely some patterns there. Outsourcing of highly creative work that is integral to busines strategy doesn’t work. Commodity work that is more along the lines of manufacturing or built-to-spec where specs are unwaveringly clear can work if there is sufficient stewardship and management on the part of those buying outsourcing services. Outsourcing also requires a LOT of communication through difficult temporal, geographical and cultural barriers. That can eat away at the costs savings at a frightening pace.
I guess the upshot is that if the lion’s share of your work is routine and commodity work, you might rethink your business model. If your work is highly customized for each client and requires exacting attention to detail and high contact with the client, outsourcing wouldn’t be in your clients’ best interests.

Isn’t that what this profession is about? Looking out for our clients’ best interests?

19.

Tara
Nov 14, 2008 9:03 AM CST

I worked in what would be considered “commodotized” document review while waiting for my bar results.  The work basically consisted of looking at contracts for various phrases.  It is barely “legal work” and something an attorney would I suspect generally pawn off on a secretary, paralegal or clerk.  As to clients demanding lower fees- what else is new.  Call centers to India for specialized legal problems here is laughable- there is no way that would work…they can barely tell me whats wrong with a printer when they have a manual and database in front of them…they’re going to explain fine nuances in state and federal law or give a plan of attack as to any of these problems? Did Susskind predict the flying car as well?

20.

NAK
Nov 14, 2008 9:53 AM CST

#11 by Paul k. is right on! There’s no getting around us because we take care of our own.

21.

Scott
Nov 14, 2008 10:14 AM CST

Great - India and China can manage our dataroom.  My clients and my firm’s clients are trusting an oversees lawyer, who they can’t call 400 times a day, with their $150 million acquisitions.

22.

Larry
Nov 14, 2008 10:45 AM CST

Give me a break.  Customer service in nearly every field has deteriorated to the point of being maddeningly useless, and the legal field is the next line of service to be reduced to outsourced garbage?  Bloated large firms may need to restructure, but us solo/small firm guys frequently already do very good work on a timely basis for a fair price.  My practice is booming and I’m turning away work everyday, even with the old billable hour model.  I think Susskind is largely off the mark.

23.

Ed H.
Nov 14, 2008 11:16 AM CST

Susskind, I believe is pretty far off on his prediction.  While I don’t think it’s a good idea to walk around with blinders on thinking that everything will go on as it has over the previous century, there is much about our profession that is not capable of being digitized or outsourced to foreign jurisdictions.  First, jurisdiction and licensing would obviously play a key role. The legal profession in most of the world’s systems protects its local licensed practitioners by prohibiting representation of clients by foreign lawyers - you almost always need to have local legal counsel to carry out representation in a foreign jurisdiction.  Second, these jurisdictional boundaries and licensing requirments are not merely antiquated protectionist rules put in place by lawyers for lawyers.  The existence of these barriers is intrinsicly tied to the concept of sovereignty.  Not only should I not be allowed to represent an Indian client just because I might be able to outcompete an Indian law firm, but I don’t know the nuances of the Indian law or its legal system nor was I educated in a law school that the sovereign nation of India has deemed adequate. Similarly,  I am not held to account for my actions on behalf of clients in India by Indian rules governing the conduct of lawyers, etc., etc.  Does anyone know if this futurist Susskind is a lawyer?  It sure doesn’t seem like he is familiar with the policy behind the rules governing lawyers.

24.

billybob
Nov 14, 2008 11:38 AM CST

The legal market is so flooded that pricing pressure will bring rates down without need for people to trust their legal affairs to foreigners. Remember when large firms were rarities? Now they’re just “McFirms.” The legal profession is no less a commodity business than every other business on the planet. I think what we are really seeing is the end of “professions.”  Law is just another licensed occupation, like plumbing, dentistry, or being a barber. Think about it. Who ISN’T a lawyer these days?

25.

JPW
Nov 14, 2008 12:02 PM CST

I attended a General Counsel West Coast conference last week and during that time attendees got a dose of how corporations like Gap Inc are sending legal work to India, mostly contracts that a first or second year transactional attorney would do.  Not surprising for a company that has its clothes manufactured abroad.  The conference was swarmed by sales reps from Indian outsourcers and during the mixer all GC left—leaving law firm types like me alone with the Indian salesmen—the worst mixer in my life and a dreadful conference to attend.  But from my conversations with the Indian salesmen I am convinced there is not much chance for a responsible attorney to supervise work over there.  Notice, by the way, how outsourcing to India is growing as attorneys (including temp attorneys) are out of work here.  If the trend continues, law schools need to accept less students.

26.

Bill Dickey
Nov 14, 2008 12:32 PM CST

Yes, outsourcing to India / China may cost less, but make sure you can get everything in writing.  Has anyone tried to talk to these guys?

Bluh, Bluh Bluh Bluh—-I cant friggin’ understand a word they say!

27.

Southern Lawyer
Nov 14, 2008 1:25 PM CST

Anybody who thinks that this is a good idea has obviously never had to deal with a contract dispute where one of the parties, instead of getting a lawyer, used a printed form.  The law is and will always be ultimately about people.  And until we’re all entirely predictable commodities, legal advice never can be.

28.

kenan
Nov 14, 2008 5:14 PM CST

Well, I guess I am past my prime or something, because I can clearly remember a time when a lawyer needed to be able to spell correctly to be taken seriously. Sorry, but makeing? manageing? eventuelly?

29.

3L
Nov 15, 2008 3:18 PM CST

Thank you Kenan.  I’m still in law school, but I was appalled by the spelling in that too.  She would have been laughed out of my legal writing class and I’m at a 2nd tier law school.

30.

TRainer
Nov 16, 2008 2:57 PM CST

Well, of course, the party’s over.. I’m about to attend…  Blame me guys, this always happens when I join a company…

Oh, wait, could this just be an attempt to sell a book??????????  NAW… it couldn’t be that!

You know, I’m just not afraid of the whole outsourcing threat.  Sure, there are some things that non-lawyers can do, and I fully support the profession changing its attitude about that and letting paralegals do more.  But there are always things that require the attorney and simply can’t be phoned in!

AND there will always be people like me.  I’m not xenophobic or anything, but I’m very, very leery of dealing with companies that outsource.  I can promise you this, when I finally open my own firm, I will NOT outsource in this manner.  Even if it costs me some bucks.  I just don’t think it’s right.

31.

B. McLeod
Nov 16, 2008 3:04 PM CST

In ONE firm, where I worked for nearly five years, there was a SENIOR (firm name) partner, who could scarcely spell AT ALL.  He relied on STAFF and SPELLCHECK (and it is DANGEROUS to rely on SPELLCHECK if ye cannae SPELL).  I would see letters GOING OUT with utter gibberish, where SPELLCHECK had suggested a complete MALAPROPISM, and he had SELECTED it, knowing NO BETTER.  This man, by the way, was OTHERWISE a very capable lawyer, licensed in SEVERAL states, including CALIFORNIA (where the BAR exam is NO easy thing).

32.

Goldstein
Nov 17, 2008 7:49 AM CST

Sorry, no. At the end of the day, there is no substitute for competent oversight, and competent oversight will not get any cheaper. Cost-effective will never beat risk-averse.

33.

globalist
Nov 17, 2008 10:34 AM CST

Seems like we’re all so busy justifying our own importance, we’re overlooking the realistic advantage to outsourcing. 
Nobody said the Indians and Chinese will replace us as attorneys.  But I can imagine a scenario where they draft simple motions and standard complaints, etc. for less pay than an American paralegal and email them back for the local attorney to check and revise.
The courts won’t have to reach out and try to impose jurisdiction on the Indian subcontractors.  They’re more likely to place liability on the attorneys.  After all, who signed the motion when she filed it?
And one other thing: Asia’s daytime is our nighttime.  Can’t a business get more done if it fits 24 hours of work into a 12-hour day?  <i>See<i> The World Is Flat (Thomas Friedman).

34.

Dave675
Nov 17, 2008 4:16 PM CST

How about outsourcing jury duty?

Add a Comment

We welcome your comments, but please adhere to our comment policy.

Commenting has expired on this post.