What Are Alternative Legal Service Providers?

Alternative Legal Service Providers, commonly referred to as ALSPs, are a category of legal service providers that have emerged in recent years. These providers offer a range of legal services, such as contract management, e-discovery, document review, and legal research, to corporate legal departments and other clients.

Unlike traditional law firms, ALSPs leverage technology, process efficiency, and alternative pricing models to provide legal services more efficiently and cost-effectively. They offer a wide range of legal solutions and are able to tailor their services to meet the specific needs of clients. As such, they are becoming increasingly popular among potential clients who are seeking to reduce their legal spending without compromising on quality.


How are ALSPs different from Law Firms?

Although ALSPs employ lawyers, their focus is on managing the routine tasks that facilitate the effective handling of legal or legal-adjacent matters, rather than handling such matters directly. ALSPs tend to specialize in specific areas of legal services, such as contract management, e-discovery, and document review, rather than offering a broad range of legal services. They also have a more collaborative approach to working with clients, working alongside in-house legal teams and other service providers to deliver solutions that meet the specific needs of each client


ALSPs offer some of the following services:

1)     Document review

2)     Contractmanagement

3)     E-discovery

4)     Due diligence

5)     Compliance

6)     Legal research

7)     Litigation and investigation support

8)     Intellectual property portfolio management


Here are some benefits of using ALSPs:

1.     CostSaving: ALSPs can help reduce development costs as they often provide development resources at a lower cost than building an in-house team. Additionally, ALSPs can help organizations save money by reducing downtime and improving overall efficiency.

2.     Access to Skilled Resources: ALSPs typically have a pool of highly skilled and experienced developers, designers, testers, and other IT professionals who are available to work on projects. This means that organizations can leverage the expertise of these resources without having to invest in their training and development.

3.     Scalability: ALSPs can quickly scale up or down resources to meet changing business needs, making them an ideal choice for organizations that need to ramp up development during peak seasons or for specific projects.

4.     Focus on Core Business: By outsourcing application development and maintenance to an ALSP, organizations can free up their internal resources to focus on their core business functions.

5.     FasterTime-to-Market: ALSPs are experienced in building and maintaining applications and can often deliver projects faster than in-house teams. This can help organizations get their products to market more quickly, giving them a competitive advantage.


The Big Four ALSPs

EY (Earnest Young), PricewaterhouseCoopers (PwC), Deloitte, and Klynveld Peat Marwick Goerdeler(KPMG).

These business giants tried to break into the legal market in the ’90s, but their positioning of “we’re just like law firms only bigger” did not generate significant work. Now, they’ve seen success by intentionally differentiating themselves from law firms, offering a wide variety of critical legal support services.

While ALSPs have emerged as a game-changing trend in the legal industry they are now an established part of the legal market, and their influence is likely to continue to grow in the coming years. Although they are not a panacea for all legal issues, however, they offer a compellingalternative to traditional law firms, especially for clients seeking moreflexible, streamlined, and cost-effective legal solutions. As the legalindustry evolves, ALSPs are well-positioned to play a critical role in shapingthe future of legal services.