Tag Archives for " recovery rate "

Jan 18

Why Recovery Rates Really Matter

By Michael Feit | Best Practices , Sole Provider , Vendors

For the majority of firms that still pass through costs, the true cost is not what you are paying to Lexis or Westlaw.  Instead, the true cost is what the firm was unable to pass through to clients.
 
If a firm is forecasting future recovery rates >80% for either Westlaw or Lexis the business case will show that elimination is not worthwhile. The closer a firm is to passing through and recovering 80% of the costs, the opportunity for savings derived from the elimination of a vendor is essentially eradicated. When recovery rates are high or the negotiated rates with Lexis and Westlaw are low, the costs to replace content and build workarounds, coupled with the hassles involved, would likely negate much of the benefit of going sole provider.
 
Beyond knowing what is the firm’s true costs and recovery rates today, does the firm have a projection for the future?
Dec 05

Our Evolving Perspective on Sole-Provider

By Michael Feit | Sole Provider

Many factors have contributed to the sole-provider phenomenon.

The leading factor driving this trend is the deterioration of recovery rates, now at 38%*.  

With half of large law firms successfully retaining only one of these vendors, there is validity that the sole-provider option is viable. Firms that have eliminated a vendor are achieving tremendous new efficiencies without compromising work product.

Aug 10

Decline of Recovery Rates

By Michael Feit | Sole Provider , White Papers

Although there are likely several factors driving firms to choose a sole provider, there is a clear inverse relationship between the diminishing ability to recover online legal information costs and the movement to sole-provider.

Since recovery rates began decreasing in 2008, the percentage of sole-provider firms has been increasing correspondingly. The chart above illustrates this trend.

Learn more about these trends in our latest white paper, Westlaw & Lexis: Path to Commoditization.

Jun 01

White Paper “Westlaw & Lexis: Path to Commoditization” Now Available

By Michael Feit | Vendors , White Papers

Westlaw & Lexis: Path to Commoditization shares an analysis on the current state of the market, supported by data collected from 98% of the large law firm market.

Our white paper provides law firm administrators the data and context behind this trend to make informed decisions in a rapidly changing market.

Gain critical insight into what firms may expect in the future on recovery rates and overhead, as well as personal thoughts from firm administrators about their satisfaction and expectations of these two vendors.

For more information, click here.