There have been two distinct waves of foundings of alternative legal services providers (ALSPs): one from 1999 to 2007, including outsourcing companies such as Integreon, Axiom, Relativity, Consilio, Exigent, Pangea3 and Lawyers On Demand; and then another from 2010 to 2015, including the new wave of tech companies such as Neota Logic, Ravel Law, ROSS Intel and Kira Systems.
The gap between these two waves is likely due to the financial crisis and Great Recession of 2007–08 – as is, I would suggest, the second wave itself, which rapidly developed in response to the widespread demand for better value from corporate clients following the recession.
Yet today, according to the Thomson Reuters 2017 Alternative Legal Service Study, alternative legal services provision (“non-law-firms” basically) is an $8.4 billion industry worldwide – and that figure doesn’t include companies that make legal technology to carry out legal tasks, which is probably at least another couple billion and change. So we’re talking about a sector that has generated tens of billions of dollars over the last couple of decades, at least 1 per cent of global legal spend annually, from a standing start the year Titanic was released.
I think that’s pretty impressive. And like many people, I’ve not seen much reason why this sector couldn’t continue to grow just as fast in the years to come. Yet there’s at least some data out there to suggest that that growth has stalled recently. Why so?