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As alternative legal service providers (ALSPs) continue to take root with significant growth across the legal world, law firms have to consider how these niche companies affect their bottom line and how to react to this burgeoning parallel industry.
According to the American Bar Association, ALSPs are among the top competitors pulling work from law firms, noting that they are better leveraged and priced more competitively. With a growth rate of 50% annually, ALSPs aren't going away soon. And while law firms are typically slow to implement change, many are toying with ways to minimize the financial effects of ALSPs, both by creating subsidiaries and by contracting with outside providers. The goal is to compete, increase efficiency and better serve clients.
During this era of COVID-19, streamlined processes and enhanced client service are more important to the bottom line than ever. As a result, law firms have taken a significant turn to ALSPs, which have seen strong uptick in growth as standalone service providers and as law firm subcontractors. Law firms are using ALSPs to trim budgets and free up attorneys to address higher-level issues, all the while improving the client experience.
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