While responding to the following kind analyst inquiry I decided it made a better blog for the broader audience. Love your comments and feedback to my perspectives.
We have been following your thoughts and views on various topics within the ALSP / LPO space and are amazed at the insights you have. Our Organization is planning to get into the ALSP / LPO space and was wanting to speak with you to understand more about this area before we go live. Pl let me know if we can speak and have more understanding within this area.
Gotta love those AI image goofs…
My first response was, ‘You missed your window.’ It feels like we have passed the peak for overseas contract review, development and operations revenue. Innovators seem focused on automation and GenAI solutions for retrieval, customized solutions (vibe coding now) and large data hosting (in-place preservation/indexing). The eDiscovery market has gone through waves of acquisitions and consolidation that have produced a limited number of global players and the surviving ‘concierge providers’. I am speaking of services more than technologies, though they can be hard to tell apart these days.
My recent return to the trenches supporting high pressure, large collection matters has highlighted some benefits and limitations of the modern global service provider model. I now understand why many clients have stayed with their smaller, more nimble providers. Global providers invest in standardization, automation, throughput, security, scale capacity and customer relationship management. Centralized operations and infrastructure under modern data management systems deliver efficiency and consistency. That model makes sense if the goal of every discovery was production and trial. Volume/item-based pricing models drive mass collections, processing and AI driven review rather than matter resolution. Forensics labs and operations teams are comp’d on throughput rather than data reduction and recall. Project managers (PMs) at smaller players wear multiple hats and often work with a broader set of tools instead of an automated workflow. They are in closer communication with counsel on goals. As I said, pros and cons for both service models.
Commodification of eDiscovery services/technology erodes the traditional value of overseas providers with much lower overhead and personnel costs. Frankly volume prices and personnel rates have stabilized. New players generally cannot compete on price without sacrificing something. They have to change the game by either targeting new pain points (mobile, chat, AI, etc.) or escaping ‘linear EDRM mindset’ trap with innovative GTM strategies. Neither of these strategies are easy or low risk. How long before Microsoft or the big players solve a new data source? Will prospects bite on a savings or time-to-resolution based cost model?
New ALSP/LPO providers face a challenging market. Those with deep experience and expertise also have an opportunity to leverage the new technologies to speed time-to-truth and guide clients through GenAI adoption pain. Let the global giants fight the price and ROI wars with their branded products. Focus on supporting client goals and priorities with reasonable approaches and deep expertise so that they can practice law instead of wrangle tech. The market will support smart, focused new entrents, but the bad old days of simple hosting or contract review revenue are slowly dying.
Greg Buckles wants your feedback, questions or project inquiries at Greg@eDJGroupInc.com. Book a free 15 minute ‘Good Karma’ call if he has availability. He solves problems and creates eDiscovery solutions for enterprise and law firm clients.
Greg’s blog perspectives are personal opinions and should not be interpreted as a professional judgment or advice. Greg is no longer an investigative journalist and all perspectives are based on best public information. Blog content is neither approved nor reviewed by any providers prior to being published. Do you want to share your own perspective? Greg is looking for practical, professional informative perspectives free of marketing fluff, hidden agendas or personal/product bias. Outside blogs will clearly indicate the author, company and any relevant affiliations.
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