According to The Zebra, about 12 million lawsuits are filed against small businesses every year.

When a business faces any kind of legal challenges, it can make things very difficult. Getting suitable legal counsel is vital, and while this is traditionally done through law firms, there are other solutions.

Alternative Legal Service Providers (ALSPs) have become increasingly popular in recent years. They continue to grow, making them an effective option for all kinds of organizations.

In this guide, we’ll take a look at what working with an ALSP involves and how they’re changing legal representation in today’s world. Keep reading for more.

What Are ALSPs?

An ALSP is a business that offers various legal services to in-house teams while not being a traditional law firm. They can vary significantly ranging from small legal technology startups to large international firms. There are three main ALSP categories.

Independents

Most ALSPs fall into this category. They’re highly agile and typically focus on a single niche, basing their services on technology.

Big Four

The Big Four have made sizable advancements in legal services over the years. These include the following accountancy firms:

• EY
• PwC
• KPMG
• Deloitte

They generally offer a full array of legal services to larger enterprises.

Law Firm ALSPs

Due to growing competition, various law firms have created independent businesses that serve as ALSPs. They provide lawyers that clients can contract as and when they’re needed.

How ALSPs Differ From Law Firms

There are a few key differences between ALSPs and traditional law firms. While they still employ attorneys, they don’t actually tackle legal matters. They instead support the execution of legal matters.

Services

Traditional law firms will typically execute a legal matter from start to finish, so you don’t need to do much in-house. When working with an ALSP, corporate counsel is responsible for legal decision-making and can benefit from the legal support services an ALSP provides.

Some typical services from ALSPs include:

• Contract management
• Document review
• Compliance
• Legal research
• Due diligence
• Intellectual property portfolio management
• Litigation and investigation support

Temporary staffing and legal technology consultation are also becoming increasingly popular services from ALSPs.

Role Structure

Traditional law firms maintain a set hierarchy with job titles that specify the roles of different individuals. ALSPs are less rigid and don’t give set tasks to specific associates or partners.

They will usually allocate different tasks based on the experience and interests of employees. This generally leads to better deliverables. Such flexible legal solutions also help with collaboration and can result in lower bills for clients.

Billing Models

Most law firms bill based on either hours or timekeeper positions, so clients may have to pay more for a more experienced paralegal. ALSPs typically provide cost-effective legal services using flat fee models.

Ownership

In most states, law firms can’t be owned by anyone who isn’t an attorney. ALSPs, however, can be owned by anyone. This flexible approach makes it easier for ALSPs to adopt digital tools and processes which can then help them provide better service to their clients.

Why Choose a Law Firm?

While ALSPs can be very beneficial, it may still be better to opt for a traditional law firm. The traditional format of law firms means that they always stick to:

• Regulatory standards
• Bar association rules
• State licensing requirements

ALSPs aren’t always subject to the same professional conduct rules.

Due to the impact of ALSPs, many law firms have expanded their offerings in recent years. As such, you shouldn’t have access to all of the legal solutions you need.

How the Pandemic Changed Everything

ALSPs really started to become prominent in the early 2000s and have grown over the years. However, the Covid-19 pandemic changed the way businesses operate.

Workers in all kinds of industries began reevaluating their careers, and many left in what’s now known as the Great Resignation. This included many law firms, and it continued throughout the following years.

These professionals had legal experience but didn’t want to return to the traditional law firms they had left. ALSPs served as the perfect place for them to turn, leading to a huge boost in these service providers.

Now, many ALSPs have highly skilled and experienced teams, allowing them to provide high-quality legal support services to companies in all industries. As a result, they’re becoming an increasingly popular choice when businesses are facing legal challenges.

The New Landscape

In the past, almost all businesses would turn to traditional law firms when they needed general counsel (GC) services. Now, ALSPs are providing legal services in a new way, impacting the industry as a whole. Because of this, law firms are having to reconsider how they operate to stay competitive.

A report from Bryter in 2022 stated that 69% of GCs considered managing workload against time and resources to be their top priority. This statistic shows that there’s a lot of room for growth in the industry, and ALSPs have a suitable opportunity to fill this gap.

ALSPs often make effective use of legal technology, which is evolving very quickly. They tend to offer advanced solutions that are less typical of traditional law firms.

This is helping to push the legal industry forward with client-focused solutions that are more efficient and accessible. There are already some innovative blockchain and AI solutions within the legal sector that are presenting new approaches to legal matters.

Due to the advancements that ALSPs have implemented, many traditional law firms have made changes to their operations. Embracing new technologies and approaches is helping these law firms provide better services to their clients. As a result, businesses that select the right partners are getting much better results.

Getting the Best Legal Assistance

It’s important for every business to ensure they have suitable legal protection. In the event of a lawsuit, you want to know you have reliable guidance from a law firm or ALSP to help ensure your business gets the best outcome.

Boyer Law Firm has a team of experienced professionals ready to help support your business when needed. On top of business and commercial services, we operate in various other areas providing a comprehensive range of services.

We’re fully board-certified by the Florida Bar and have won numerous awards for the legal services we’ve been providing for over 15 years. Get in touch today for a free case evaluation.