In order to make alternative fee agreements work, law firms need to find ways to control their costs. But it is a win/win scenario for attorneys and their clients as the business of law shifts to this new paradigm. Clients get more predictability with fixed fee billing and with outsourcing, law firms of all sizes have the ability to handle document intensive cases. In addition, large firms have a way of continuing to provide very high end strategic advising at premium prices without having to charge the client $300 per hour to have first year associates doing relatively low value document review work.
There are, of course, a number of ethical issues that should not be neglected and we will be covering some of these in my upcoming MBA panel on marketing your practice with conventional and alternative fee agreements. But if you want more depth on the ethical issues, LPO giant Inegreon is hosting a webinar featuring LPO guru, Mark Ross. I’ve heard Mark speak in the past and he does a great job (i.e. don’t let the price convince you otherwise).