Outsourcing client work to freelancers is not something many firms care to divulge. Yet, the reality is that many firms rely heavily on external resourcing.
We investigate exactly how much work firms are sending to freelancers, as well as striking the perfect balance between leveraging freelancers and building a unified, digitally-driven workforce.
Calculating the perfect number of lawyers needed to deliver client work, exactly when it's required, and across all the many niches of the law – it's as much an art as it is a science. It's little wonder why a growing number of firms are relying on freelance lawyers to keep up with the peaks and troughs.
"You can increase or decrease resources a lot quicker than you can a permanent workforce," says John Joyce, the Former Managing Partner at Addleshaw Goddard.
Yet the topic of outsourcing is somewhat taboo in legal circles. Firms are often hesitant to openly discuss their reliance on external resources, leading to a lack of transparency in the industry.
"Freelance lawyers are there to do a very specific role, like document review, and work alongside, not as a substitute for, our permanent workforce," says Deborah Finkler, the Managing Partner of Slaughter and May.
A recent ÀÏ˾»úÎçÒ¹¸£Àû survey of law firm leaders found more than a third (34%) rely on short-term contract or freelance lawyers to carry out client work. Interestingly, medium-sized firms were the most likely to employ freelancers, with almost half (46%) doing so. The survey also found that a small but notable percentage of firms (7%) rely on freelancers for 90-100% of their client work.
Firms often turn to freelancers to access specialised knowledge or expertise in niche areas of law. However, outsourcing too much work can impact firm growth and hinder the development of a collaborative, team-oriented culture. Finding the right balance is crucial for maintaining efficiency and fostering a cohesive workforce.
"We don't feel we need to deliver everything that anyone's ever going to ask us to do on any given day," says Joyce. "That might mean you're carrying less resource than you need one week, while you're carrying more the next week."
The pandemic has sparked a shift in mindset among associates, with many seeking greater work-life balance, flexibility, and autonomy. Fee-sharing firms like Keystone Law and gunnercooke have capitalised on this trend, attracting lawyers from various career stages with the promise of higher earnings, autonomy, and job satisfaction.
"We compete with the mid-tier conventional law firm, but enable our lawyers to work with a greater degree of flexibility and autonomy which helps with their job satisfaction and our retention," says John Knight, CEO of Keystone Law.
"We don't have the bureaucracy, we don't have the politics, we don't have the remuneration battles, we don't have the hourly billing targets, so we take away all the things that people don't like about big law and give them total freedom," said Darryl Cooke, Co-Founder and Executive Chairman of gunnercooke.
As firms continue to invest in generative AI tools, the need for outsourcing certain tasks or accessing niche expertise may diminish. AI-powered legal research, document drafting, and analysis could potentially reduce the reliance on freelance lawyers for simpler tasks, reshaping the outsourcing landscape.
While outsourcing can provide temporary relief during busy periods, firms aiming for sustainable growth must prioritise building highly collaborative, cross-functional teams that leverage technology and innovation. By fostering a "one-team approach" and embracing digital transformation, firms can enhance their competitiveness and deliver exceptional legal services more efficiently.
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"For lawyers to contribute to the sizeable matters we work on at our firm, we really need them to be working with us on a day-in-day-out, full-time basis," says John Quinn, Co-founder and Chairman of Quinn Emanuel Urquhart & Sullivan.
"The short-term contractor model only really works for the 'low-level, factory type law in the consumer space'," says James Knight, CEO of Keystone Law.
As the legal industry continues to evolve, the role of freelance lawyers in law firms will likely remain a topic of discussion and strategic consideration. While outsourcing can provide temporary relief during busy periods, firms aiming for sustainable growth must prioritise building highly collaborative, cross-functional teams that leverage technology and innovation. By striking the right balance between leveraging external resources and cultivating a unified, digitally-driven workforce, firms can enhance their competitiveness and deliver exceptional legal services more efficiently. The future of the legal industry lies in embracing change, fostering a "one-team approach," and adapting to the ever-shifting landscape of client demands and technological advancements.
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