US and UK Legal Services Sector Feeling the Pinch
BigHand, a leading provider of technology solutions for busy legal professionals that provide data and insights to increase value and profits, has unveiled the results of its comprehensive market research, shedding light on the current state of the legal industry. The in-depth study, conducted across more than 800 law firm leaders, offers a clear picture of market trends and the diverse strategies adopted by firms to navigate the changing landscape.
The research findings paint a challenging outlook for the legal sector, with a staggering 75% of respondents reporting declining demand over the past 12 months. Additionally, 75% are also anticipating a continued decline in demand for legal services over the next 12 months. This revelation highlights the need for law firms to adapt and evolve to remain competitive in an increasingly uncertain market.
The study showcases the different strategies law firms are taking to effectively navigate these challenging times.
"Our goal with this research was to provide law firm leaders with valuable insights into market trends and equip them with the knowledge to make informed decisions," said Briana McCrory, CMO at BigHand. "We wanted to identify key areas where firms can adapt and find new opportunities amidst the changing landscape of the legal industry."
The research conducted by BigHand is the most comprehensive of its kind, encompassing a global sample of law firm leaders. The findings have been divided into five shorter reports, with the first report being released today, which specifically looks at the decline in demand for legal services and the emergence of the business-savvy buyer.
Key highlights from the research include:
- 75% of law firms globally have reported a drop in demand for legal services, reinforcing the urgency for firms to reassess their strategies and adapt to the evolving market conditions.
- An overwhelming 87% of law firms globally have experienced increased cost-consciousness from their clients, indicating a growing trend of clients seeking cost-effective solutions and alternative service providers.
- In response to client pressure, 61% of law firms globally have opted to reduce prices over the past 12 months. This strategy aims to maintain competitiveness and retain clients in an increasingly price-sensitive market.
- As an alternative approach, 29% of law firms globally are focusing on building stronger client relationships to address the downturn in demand. By prioritising client satisfaction and cultivating long-term partnerships, these firms aim to differentiate themselves in a challenging market environment.
BigHand's research will provide valuable insights to law firms, helping them navigate the shifting landscape and make informed decisions. The subsequent reports will explore additional aspects of the legal industry across resourcing & retention, hybrid working, staffing structures and the use of technology. It aims to offer actionable strategies for law firms to enhance their competitiveness and profitability.
Follow the link to gain access to BigHand's research and report.Subscribe to the Legal Practice Intelligence fortnightly eBulletin. Follow the links to access more articles related to the business of law and legal technology.
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