Maximizing Your Law Firm's Tech Investment: Why MSPs are Key

In today's fast-paced world, technology is a vital component of success, and law firms are no exception to this trend. As such, law firms are increasingly investing in technology to support their business goals and gain a competitive edge. We covered some of these critical efficiency-boosting technologies in our last article - Technology-Enabled Efficiency for Law Firms.

However, as technology continues to advance, it's becoming increasingly important to leverage technology to retain talent. After all, while tools can help us work faster, more accurately, and cut costs, they ultimately exist to make life easier for your most valuable asset - your employees.

According to the 2022 Wolters Kluwer Future Ready Lawyer Survey Report, 83% of law firm lawyers consider it extremely or very important to work for a firm that fully leverages technology. However, only 33% of law firms believe they are well-prepared to recruit and retain technology staff. This presents a unique challenge for law firms of all sizes. But where there's challenge, there's opportunity, and Managed Service Providers (MSPs) are stepping in to help law firms navigate the complexities of technology and retain their valuable talent. Let's dive into how.

The Increasing Importance of Technology and the Need for Tech-Enabled Law Firms

Technology plays a critical role in a thriving and competitive legal industry, and more and more legal professionals are embracing this fact.

According to the 2022 Wolters Kluwer Future Ready Lawyer Survey Report, 63% of lawyers expect their investment in software to support legal work to increase over the next 12 months. Moreover, an eye-watering 91% of legal departments say it will be important to have a law firm that fully leverages technology in the next three years.

In other words, law firms understand that technology is critical to their long-term growth goals. However, that doesn't mean making this transition to a technology-enabled or technology-centered firm is easy. Like many traditional sectors, the legal industry faces many roadblocks to technology adoption. Namely, concerns over data security and confidentiality, resistance to change, lack of technical expertise, and high costs of implementing and maintaining new technology (compounded by the lack of technical knowledge). Additionally, some firms may not fully understand the benefits of technology adoption or may not have a clear strategy for integrating technology into their operations.

But despite the challenges, they're feeling the pressure to modernize and adapt. What’s more, clients are also demanding tech-enabled law firms. In fact, client demand for tech-enabled law firms hit a record high in 2022 and is expected to continue to climb.

Legal departments rank firms based on their ability to use technology to improve productivity, efficiency, collaboration, and work processes, as well as their ability to understand client needs and partner with clients. The vast majority of legal departments - 91% - say it will be important in the next three years to have a law firm that fully leverages technology. By 2025, 97% of legal departments will require law firms they are considering to describe the technology they use to be more productive and efficient.

Given this increasing demand for technology, law firms need to find effective ways to manage their technology needs. A Managed Services Provider (MSP) can be an optimal solution here. MSPs provide direct access to highly skilled tech professionals and reduce the need to hire externally or upskill a current staff member into a technical role.

Why Working with an MSP is a Smart Investment for Law Firms

Here's the bottom line. Not all firms have the necessary expertise or resources to achieve their technology goals. This is where MSPs come in. Working with a Managed Service Provider (MSP) can help law firms achieve their technology goals while retaining talent.

Here are some specific examples of how MSPs can benefit law firms:

• Free Up Resources: One of the most significant benefits of working with an MSP is the ability to free up internal staff to focus on strategic initiatives or simply spend more time doing value-adding work. Law firms can outsource tasks such as network monitoring and maintenance, freeing up their IT staff to focus on developing innovative solutions that can give them a competitive edge.
• New Technology: MSPs can provide expertise in specialized legal technology, such as contract management software, legal document management software, e-discovery tools, and case management tools, to help you stay ahead of the competition. These technologies can help reduce administrative burden and time spent on repetitive and time-consuming tasks that eat into the workday (and budgets).
• Stability and Scalability: MSPs can provide stability and scalability, ensuring that the firm's IT infrastructure can keep up with its growth without risking costly downtime.
• Reducing Cost/Budgets: MSPs can lower overhead costs and minimize downtime, which can help firms manage their budgets. They can also provide cost-effective solutions and adapt to changes in the talent market, ensuring that law firms can stay ahead of the curve. This is especially important right now, when economic uncertainty is rising, and budgets are tighter than ever.
• Compliance: Working with an MSP can eliminate compliance issues by ensuring that law firms meet the regulatory requirements associated with new technologies and data handling. 

In short, MSPs provide law firms a route to a more deliberate and strategic approach to technology adoption - one that eliminates waste and ensures the tools in your office are the right ones for your specific business needs. This is crucial because a firm with 10-20 employees may have different needs and resource constraints than a firm with over 100 employees. Or, in other words, MSPs reject the one-size-fits-all approach to technology implementation.

And critically, the technology you implement needs to provide demonstratable benefits to your employees, or you risk cultivating a frustrated, overworked, and distracted workforce who may seek a better employee experience elsewhere.

Let’s Talk

For small law firms, having the right technology partner can make a significant difference in talent retention and maximizing technology to improve your bottom line. With LammTech as your Managed Service Provider, you can expect a strategic partner who values your business and is committed to helping you reach your goals. In addition, we have a proven track record of providing integrated technology solutions tailored to your specific business needs, whether you specialize in trial work, tax, estate, or business planning.