BigLaw is adopting elements of NewLaw to stay competitive

The latest edition of the CommBank Legal Market Pulse report in Australia reveals BigLaw is adopting elements of NewLaw to stay competitive. The report is based on a quantitative survey by Beaton Research + Consulting of CEOs, managing partners and other senior leaders in Australia. Forty law firms participated in the survey for during May 2017.

Here are some of the key findings:

• Australia’s largest law firms have been under pressure in a tough market, as competition from NewLaw startups keeps rising.
• This research shows they are responding in kind by starting to reshape their business and pricing models, partnering with NewLaw competitors, and/or investing in technology to reduce fixed costs and improve client service.
• Confidence has surged among top-tier and mid-tier firms as they find new ways to respond to competitive threats.
• 60% say they have adopted elements of NewLaw to stay competitive.
• 63% expect to be outsourcing fee-paying work in two years’ time, up from 38% today.
• 82% plan to increase their investment in technology in the year ahead.

• Only one in eight top-tier firms and four out of 32 mid-tier firms viewed NewLaw firms as a substantial threat to their market share today. However, many agreed that their impact would grow, with half of the top-tier firms in the survey saying NewLaw competitors were likely to pose a serious challenge in two years’ time. In comparison, mid-tier firms were relatively relaxed, with 24 out of 32 neutral or unconcerned.

The full report is available here.

 George Beaton