Legal Industry Outlook for 2021: Trends to Watch | BCGSearch.com

Legal Industry Outlook for 2021: Trends to Watch

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Many people find the legal industry extremely appealing. Law also impacts many people in a highly direct manner. From marriage to employment and beyond, people need lawyers at every stage of their lives. In many areas of law and the way it is practiced, these legal industry trends are expected to have an impact. Baby boomers retiring, new legal technology, and global expansion will continue to play a significant role in the lives of lawyers and their many clients. This industry is always changing.


Demographic shifts, client expectations, technology, and work styles have all contributed to a host of distinct trends in the legal industry. To become more efficient, productive, and competitive in the coming year, firms need to understand and leverage these trends. The following are the top trends that will influence the legal profession in 2021 and for the next several years.
 

Baby Boomer Impact


All generations continue to be dominated by the baby boomers. Due to the high number of retirees, this process will affect all areas of the country and the workforce. This is also true in the legal industry. The 75 million members of this cohort will have a massive impact on the legal industry as well. Attorneys can expect an increase in demand for services in areas of the law, such as retirement planning and transferring assets to the next generation. The demand for legal fields can also increase. Despite where they live or what they do as they age, children want to protect their parents. If you need help navigating nursing homes, a lawyer can assist you. Keeping grandparent's assets intact can also help as they age.
 

Electronic Discovery


There can be a great deal of complexity in legal procedures. There is no wonder that efforts are being made to streamline this process. All areas of the law have been affected by new technology this year, and it will continue to do so. This includes the field of discovery law. Both sides look for relevant items that pertain to a case during this process. Complexity can make this a time-consuming and effort-consuming process. Using e-discovery technology, each party to a legal case has access to the kind of technical support they need to make the process easier and less stressful. Currently, it is a two-billion-dollar industry. This year and in the future, revenues are expected to increase.
 

Global Legal Markets


There is more to the legal field than just locality. Additionally, the industry is growing throughout the world. As lawyers consider which areas of law are most important, globalization will likely impact several decisions they make. Global legal services markets are expected to reach over 5.7 billion in the next few years. The fact that law firms are looking for ways to expand directly into this area is not surprising given how big this section of the market remains. Also, the company is exploring how overseas investors can take advantage of the United States' global legal field. Law firms and market development will be driven by such legal interactions in the future.
 

Increased Demand


Legal service providers are one of the most important industries in the world. Legal services will continue to be in demand by those who follow the industry very closely. This trend is expected to continue to grow with a previous year’s industry growth level exceeding one percent. Many different ways exist and will be available to meet this increased demand. It is important to be aware of what kind of prospects are available for those who are starting in this field for the first time. All new entrants into the legal field should also be aware of which areas of law are likely to see growth before they decide to make this field their own. In the future, many law areas are likely to experience growth.
 

Legal Process Outsourcing


Lawyers everywhere hope to streamline the legal process and ensure all lawyers can perform their duties effectively. Several types of effective assistance exist. An increasing number of firms are using a process known as legal process outsourcing in the new year. By dividing up the law, we will be able to reduce all kinds of related expenses to the maximum extent possible. Many areas of law can be less expensive with the use of this type of legal assistance. Experts anticipate that this industry will earn over $35 billion in revenues by 2025. In the eyes of many insiders in the legal industry, this has created a new world of opportunity for those who can take advantage of it and fill the labor shortage that American and foreign lawyers face every day.
 

Limits on Billable Hours


For lawyers to earn the top salary, 1949 hours are typically billed annually. Lawyers may find it difficult to balance both work and personal concerns during these long work hours. They may have difficulty concentrating on legal tasks at work because of this. To remedy this issue, changes are being made. It is the goal of judicial bodies to make the process of practicing law less stressful, even for new associates. Limiting the number of hours an associate can bill in a year is one proposal that is seriously being considered. Some of the country's biggest firms expect this process to affect their associates. Moreover, it should have a significant impact on the way smaller law firms conduct business.
 

Mergers and Acquisition


Many factors influence business law. A merger or acquisition can harm a company. To conduct this type of business correctly, it requires a great deal of legal attention. Nearly five billion are expected to be generated as it has in the past. Law firms all over the world will be able to take advantage of these stats with innovative solutions that all firms need while making sure the process is followed according to local laws. When it comes to the area of business law, law firms that specialize in it have the potential for a lot of growth. For many traditional law firms across the United States and beyond, business law is likely to become a growing field.

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Big Law Firms Take a New Direction


Some of the country's largest traditional law firms are searching for new ways to help their clients in all sorts of ways. Big law firms do more than just practice law. Firms such as these also assist other firms and law firms. On the other hand, large law firms are often regarded as being costly. By joining the eleven billion dollar industry called new law, they hope to combat this image. Having access to contract lawyers is also a part of this process. Thus, firms such as these will be able to respond to current challenges in the legal industry with greater flexibility. They will continue to be successful fiscally if they are responsive to their customers.
 

Paralegal Jobs


An attorney's paralegal helps him do his job more effectively. There are many reasons why people pursue this career. For some, this is a way to discover if they are good at what they do. Several people are trying to make some extra money while caring for a family member or engaged in other activities. Legal ventures will need the kind of support they need to succeed in new markets, as lawyers expand into new markets. It is a welcome profession that offers a supportive hand to those who want to pursue it. This profession is expected to grow at a faster rate than average in the U.S. For those interested in entering the field this might be a good choice.
 

Part-Timers


Many workers are trying to find a balance between work and their personal lives. It is important to them not only to make a living but also to contribute to the larger community. This is also true for the legal profession. People from the legal profession are finding it possible to pick and choose the jobs they are most interested in because of the monthly job growth that exceeds 188,000 in the United States. In addition, a part-time job in the legal field is proving to be a good choice for them. Part-time employment allows people to earn money to pay their bills at the same time they pay off any law school debt they may have; it also allows law firms to have additional staff on hand all year round.
 

Specialization


Not so long ago, law firms of all sizes marketed their services as expansive and optimal for every single client, regardless of their unique needs. For the most part, law firms have reversed course, offering highly specialized services instead of a broad range.  As demand for highly specialized legal services increases, this will largely be due to law firms focusing on providing wide-ranging services rather than specializing in one legal niche.  

Clients are looking for a law firm that does exactly what they need.  Specialty firms will stand out from the rest and become leaders in those particular legal fields.  There is a possibility that the metaphorical pendulum will swing back in the other direction, prompting some firms to return to deliver legal services in a more diverse range of legal practice areas, but it will take several years or even decades for such a shift to occur.

See Also The 2021 State of the Legal Market Report
 

Five Trends to Shape Legal Practices in 2021

 

1. New Talent & Hiring Strategies


New talent strategies are being adopted by law firms due to the pace of technology, shifts in workforce demographics, and the need to maximize client value. Non-lawyer staffing is no longer limited to paralegals, IT, and administration. At the highest levels of large firms, non-lawyers are being employed as CEOs, CMOs, and CFOs, and smaller firms are outsourcing C-suite services.

As a result, new high-skilled roles are emerging in the litigation support industry. Those performing repetitive tasks are being replaced by artificial intelligence, whereas legal professionals are undergoing role reshuffling.

In addition, the gig economy has given rise to a distributed labor force. In addition to the existing workforce, temporary, contract, and freelance jobs allow workers to work from home and employers to quickly scale up or down. In the legal field, virtual assistants and remote working employees are becoming increasingly common as law firms move client-facing and back-office functions to the cloud. By 2021 and beyond, these market changes will result in a new law firm workforce structure.

See Also: BCG Jobs: Browse Attorney Jobs
 

2. Increased Focus on the Client Experience


Since clients' expectations have grown, a turning point may arrive in 2021 when they begin to demand change. Firms are stepping up their game to boost client service in various ways, from tailored pricing models to more emphasis on the "client experience."

Firms are responding by reducing costs, adding value, and adopting a more client-centric approach to law. In order to offer comprehensive solutions to their clients, they have partnered with other service providers. A multitude of tools is being used by firms to enhance efficiency and improve client services, including chatbots, online intake forms, and payment portals.

By improving client service, lawyers also increase value to the client. The legal process management (LPM) process is being implemented and systematic workflows are being developed to improve efficiencies. Additionally, firms are experimenting with alternative fees arrangements and value-added services, and they are reporting their costs more clearly. Firms that prioritize improving client experience will succeed in 2021.
 

3. Emerging Technologies


Law practice is undergoing a huge shift as a result of technology. According to Gartner, 85% of customer interactions will be handled without human intervention by the end of 2020. Client service is being revolutionized by bots, while internet research is being transformed by voice search. Artificial intelligence is performing an increasing number of legal tasks, such as document review, billing and litigation support, contract drafting, due diligence, and even jury selection. Virtual and augmented reality are becoming increasingly popular tools for lawyers to use in the courtroom, to train new lawyers, and to collaborate with clients and experts. Cybersecurity, data privacy, and digital will also continue to play a crucial role in 2021.

The technology also allows non-lawyers to offer public services previously provided only by lawyers. Continuing disaggregation of legal services will continue in the industry. Technology will be the key to accelerating the efficiency of law firms, reducing costs, and decreasing risks in 2021.

See Also Remote Work Works—Where Do We Go from Here?
 

4.  Micro-Niches


Many law firms market themselves as offering everything to everyone in recent years. Clients, however, seem to prefer tailored services. In addition, certain industries are experiencing increasing complexities, which require highly specialized legal expertise. Due to this, 2021 will likely see the emergence of microniches and an increase in specialized legal services.

By targeting specific clients and needs, firms can appeal to micro-niches. Firms can provide tailored services that add real value to their client's business if they have a deep understanding of their industry, goals, and pain points.

Become the go-to law firm in your area by taking advantage of this trend. Setting yourself apart by focusing your marketing, identifying niche-specific clients, and becoming a thought leader in your specific area of practice is also one-way lawyers can set themselves apart from a broader market.
 

5.  Broader Commitment to Diversity, Inclusion, and Equality


While diversity programs have traditionally been the domain of large law firms looking to recruit the best candidates, today companies of all sizes are becoming more aware of the importance of diversity, inclusion, and equality. Even small and midsize law firms are committed to diversity and inclusion. The level of participation and commitment to programs such as Mansfield Rule Certification is likely to increase in 2021.

In the legal industry, the #MeToo movement has also raised awareness of equality as a business issue. Law firms will reevaluate their gender equality policies by 2021, train employees, and evangelize diversity and inclusiveness to prospects and hired personnel thanks to the #MeToo dialogue. Women may also be promoted to higher positions within law firms.
 

Law in the Future


By 2021, we can expect significant changes in legal practice due to marketing, technology, innovation, and a market-focused approach. The legal landscape is changing rapidly, and lawyers should redesign how they deliver them in the coming years to ensure the sustainability and profitability of their practices.

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