2. Client Trends
Having committed to the cost of the operation, the law firm will expect a certain amount of work to make the business model sustainable. It will be all the more frustrating if and when clients dictate that they expect their advisors to work with other established partners for parts of the process (for example, the document review or analysis), thus depriving the law firm of the opportunity to use its own resources. As options grow for clients, they are more frequently taking the lead on deciding who to engage with for various parts of the legal process.
3. Talent Acquisition and Retention
Often, the best talent recruited into a law firm’s captive or low-cost center is looking for a career progression within the firm. Unfortunately, this may be unrealistic, which can lead to unusually high attrition rates – disappointing when the law firm has invested in recruiting, training, office space and materials. The temptation is to move the work undertaken by the operation up the food chain, to provide more “interesting” work. However, the result of this approach will create a void for the low-end work these operations and teams were originally set up for.
As with any large investment, it helps to be fully informed before making the choice between investing in a proprietary captive or low-cost center versus partnering with other providers that may better match your cost and scalability needs. We encourage law firms to connect with an experienced consulting partner to help benchmark and gauge the right choices for your firm. A company like Integreon can assist with the evaluation of all major decisions and provide details of our own experience in this market, in terms of recruitment, processes and management. We often work with, support and empower a law firm’s low-cost center or captive.