- Over a quarter of companies report that law firms’ technology falls short.
- 1 in 5 of those surveyed are unhappy with law firms’ slow response times.
- A high proportion of companies in 2023 highlight the importance of specialist products from law firms alongside traditional services.
International law firm Simmons & Simmons has today released findings from its Next Gen Solutions Index, which sheds light on the experiences of the legal teams of over 500 UK and international companies – including their relationships with law firms.
A first-of-its-kind survey launched by Simmons, the independent research lifts the lid on the challenges facing in-house legal teams across multiple sectors, along with the services that they now expect from the law firms they hire. The survey also seeks views from companies on sector trends, and insights into their staffing and use of data.
The research finds that more than a quarter (26%) of in-house legal teams feel that law firms have inadequate technology to meet their demands – rising to nearly a third (31%) of businesses surveyed in the healthcare and life sciences (HLS) sector.
While a large proportion of companies (59%) now expect law firms to offer advanced legal products, 29% of legal teams stated that there was a lack of specialist products or knowledge offered, while 1 in 5 reported being unhappy with firms’ slow response times.
The use of flexible resourcing by law firms – which can involve hiring short-term, project-based legal staff – was highlighted as a contributing factor to the success of companies’ legal operations. Of the 500 in-house legal teams surveyed, more than two-thirds (67%) agreed that flexible resourcing was important. However, a quarter said they experienced “a lack of flexibility” in the resourcing currently offered by their external counsel.
The Simmons research suggests that today’s companies also expect law firms to offer advice on how to exploit legal data to improve their business. Around two-thirds (65%) of all respondents valued advice on how to use data from legal agreements – rising to more than three quarters (76%) for those in the financial and asset management sector.
The survey also sought legal teams’ views on the biggest sector challenges, with 31% responding that their greatest concern in the next 18 months was new market entrants, followed by a quarter that highlighted challenging economic conditions.
These figures rose depending on the sector, with over a third (34%) of those in financial institutions fearing disruption from new entrants. Companies operating internationally were less concerned with new entrants than those with only UK premises (28% and 43% respectively).
However, perhaps unsurprisingly, UK companies appear less worried about managing regulatory change than their international counterparts (15% as opposed to 25%) – suggesting a degree of confidence in navigating the domestic regulatory divergence of recent years.
Commenting on the findings, Partner & Managing Director, Simmons & Simmons Solutions, Ben McGuire, said:
“Our independent research reveals what in-house legal teams are now expecting from law firms. In 2023 most companies expect their external legal counsel to offer a flexible workforce, advanced technology and advice on how to use data to achieve a competitive advantage.
Ben continued: “Law firms can’t ignore the fact that nearly a third of businesses in some sectors are unhappy with their external legal counsel’s inadequate technology estate. Equally, it is clear that all businesses – particularly those operating in the financial sector – now expect their law firms to provide a much broader set of products, services and capabilities to enhance the provision of legal advice and in support of their own legal operations.”
The research was conducted by Censuswide, an independent market research consultancy. A sample of 511 general counsels in UK firms was polled between the 3rd and 20th of January 2023. Censuswide is a member of the of the British Polling Council and abides by, and employs, members of the Market Research Society. All survey panellists are double opted in, which is in line with MRS code of conduct and ESOMAR standards.
Survey findings, figure breakdowns:
- When asked what was important to their legal operations, the answer “subscription based, self-service legal products and services developed by law firms” produced the following results: 22% very important, 37% somewhat important (59% total important); 26% neither important or not important; 11%, not important, 4% not at all important (15% total not important).
- “Flexible legal resourcing from a law firm i.e. project based lawyers, paralegals, project managers”: 29% very important, 38% somewhat important (67% total important); 20% neither important or not important; 10% not important, 3% not at all important, (13% total not important).
- “Advice on data strategy, structure and use”: 25% very important, 40%, somewhat important (65% total important); 20% neither important or not important; 11% not important, 3% not at all important (14% total not important).