Whilst consolidation and competition continue to exert pressure on law firm management in the UK, the legal profession has slowly been importing outsourcing as a management tool from industry and commerce. This apparently simple concept has long been regarded in the corporate world as a key mechanism to deliver effective business strategies as well as tactical objectives such as improved customer response or delivery times, reduced assets or headcount and to convert fixed costs to variable costs.
   
Although relatively unexplored in law firm management, the outsourcing debate has moved quickly in the last 2-3 years and has risen rapidly up the law firm management agenda. Firms are increasingly seeking ways to significantly improve client service levels, positively impact partner profits and allow the senior management team to focus on strategy and growth.

These and other factors have come together to attract the attention of law firm management teams to the outsourcing concept. Continuous competitive pressure on performance, service delivery, costs and fees, as well as an increased regulatory and compliance environment frames the whole debate and it is interesting to note that successful firms are now evaluating possible outsourcing arrangements as part of their  strategic business reviews.

In contrast to the traditional tactical approach focussed on cost reduction, firms are now looking at issues such as improved business process management, competitive positioning, risk management and transference, technology access, flexibility and rapid access to scalable and skilled resources to support their expansion plans.