Virtual Law Firms – there need not be a chasm

Technorati Tags: virtual law firm,alternative fee arrangement

<Update: corrections in italics and bold>

Working in technology, I am fascinated by the concept of virtual law firms, namely keeping overheads low by not occupying premier office space, using technology to keep a distributed workforce in sync, being more open to alternative fee arrangements etc. In the current recession, I have been wondering whether the traditional law firm model will be under threat from virtual law firms who market themselves as being more cost effective and nimbler law firms.

There is no doubt in my mind that there will always be large premier law firms but does there have to be a chasm between traditional and non-traditional firms? I just read this blog titled Law firms on demand and was pleased to see that there doesn’t have to a chasm.

Berwin Leighton Paisner a member of the Silver Circle of British law firms offers the option of "Lawyers on Demand". It makes sense to me that law firms offer options to clients at different fee structures. The argument that a traditional law firm should not adopt a hybrid model because it will erode fees is not sustainable because the firm would not have gotten that work in any event. I would really be interested in seeing more traditional law firms adopt a hybrid model and how it works.

Firms need to adapt to client demands. KL Gates generate 30% of their fees from alternative fee arrangements (see Tweet #52). They are adapting. As the next couple of years play out, we will see which firms adapt and which don’t.

PS: Before I read about Berwin Leighton Paisner’s offering, I met up with an old friend at BLP’s Singapore offices for a catch up. Below is a photo of the Singapore skyline from their offices taken with my iPhone.