Note: The following is a guest post from Daryn Teague, who provides support to the litigation software product line within the LexisNexis software division.
Tools for eDiscovery continue to evolve in sophistication and deliver measurable return on investment to litigation teams – and law firms are planning healthy investments over the next couple years.
This was one of the findings from a survey of Am Law 200 law firms that was conducted for LexisNexis by The Cowen Group. The researchers surveyed 125 law firms across the U.S. regarding their immediate and long-term plans to maintain or purchase new eDiscovery platforms, systems and services in the next 12-24 months.
Although we never intended to release this research publicly – it was designed specifically to test some of our market assumptions for product development – there were some interesting trends that we think are of value to the overall litigation support community:
1. Large law: slow and steady on eDiscovery. Large law firms anticipate a 6 to 8 percent increase in their spending next year in eDiscovery software products, across all segments of the EDRM model.
2. One-third of law firms plan eDiscovery investments. This market is still very much in flux, with more than one-third of law firms actively looking to make investments in new tools, technology and managed services solutions over the next two years.
3. Investments focus on data volume. The left-side of the EDRM is attracting the greatest budget increases for next year, with 8 in 10 firms projecting an increase in spending on culling tools (by an average increase of 8.4 percent) and more than 7 in 10 boosting investment on collections and holds tools (by an average increase of 7 percent).
4. Forecast for a change in tools. In the next 24 months, 28 percent plan to change their processing software, 38 percent of surveyed firms plan to change their document review platform, and 30 percent plan to change their production tool.
5. Hosted services. The eDiscovery managed services model continues to pick up steam in the market, with 21 percent of law firms in the process of signing a managed services agreement right now and another 27 percent either exploring or highly interested in exploring the managed services model.
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How do these findings from our survey of Am Law 200 firms compare with your law firm’s eDiscovery technology spending plans for 2015? Are there any specific tools you’d like to acquire next year if budget permits?
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