A new report has shown that NewLaw businesses are failing to access the in-house market, with the number of in-house teams using NewLaw businesses having dropped compared with the previous year.
The 2016 ACC Australia Trends Survey found that the number of in-house counsels who have recently used a NewLaw businesses has dropped from 18% last year to just 14% this year.
A whopping 70% of respondents said they were not familiar with the NewLaw business model.
ACC president Gillian Wong told Australasian Lawyer
that engaging with NewLaw could benefit many in-house legal teams.
“As with any service offering there is always a market to engage with,” she said.
“Many of the services NewLaw businesses provide are tailored to delivering a more efficient and cost-effective way of managing legal work, which is something many in-house counsel are seeking.
“It is important to remember that no in-house legal department is the same as another, each has its own unique challenges and will have different requirements when seeking external providers.”
Wong said that the report shows a major barrier for NewLaw firms infiltrating the in-house market but that NewLaw could work harder at spruiking their offerings. She said that quickly evolving NewLaw businesses are difficult for busy GCs to keep abreast of.
“To ensure their message is heard NewLaw firms need to be continually educating in-house counsel, not only on their offerings but on the benefits of using their services,” she said.
“I think we have to appreciate that NewLaw is still a relatively new concept in the Australian market compared to what might be happening at a global level.”