Breaking up with outside counsel can be tough, especially if the deal breaker is cost. While recent economic challenges have prompted general counsel to tighten legal budgets, many law firms have increased their rates to offset rising associate salaries and the record number of partner promotions. As a result, cost-conscious GCs are turning to alternative legal service providers.

And data shows that these law firm competitors are here to stay. Chambers now ranks ALSPs in its renowned legal industry directory, and CLOC found that 21% of respondents shifted more work to ALSPs than law firms in 2021. With lower costs and more advanced technology use than traditional law firms, ALSPs are strategic options for companies looking to reduce outside legal spend without reducing quality.

How are ALSPs different from law firms?

While ALSPs have attorneys on their payroll, these businesses handle the routine tasks that support the successful execution of legal matters, not the legal matters themselves

Typical ALSP offerings include:

• Document review
• Contract management
• E-discovery
• Due diligence
• Compliance
• Legal research
• Litigation and investigation support
• Intellectual property portfolio management