When the Recession Hits, Is Your Legal Information Budget Recession-Proof?

By Michael Feit | Feit Consulting

Jul 29

It is not a question of ‘if’ but ‘when’ will the next recession hit. Although there is debate to be had on a potential timeline, a cloud of uncertainty hangs in the air whether 2020 might be when we see another recession.

Now is the time to be asking the questions:

  • What lessons were learned from the 2008 recession?
  • Is your legal information budget recession-proof?
  • What can we do better now to be better positioned in the face of the next economic downturn?

A lot has changed since 2008.  Prior to the previous recession, law firms generally retained both Lexis and Westlaw and were able to pass-through and recover >80% of their costs. However, since the recession, all of that has changed.  Online cost recovery has dropped to <35%, vendor products have proliferated and pricing has become increasingly secretive and complicated.

We’ve been working with clients to provide a recession-proofing of their legal information budgets for this very reason.  Like a good health check, the takeaways are valuable, even notwithstanding any negative market trigger events. 

We are analyzing and providing scenario planning under these circumstances:

  • Loss of attorneys
  • Loss of business/revenue decrease
  • Timelines for possible cut-backs at 10%, 25%, and 50%

Lastly, Feit experts are also providing recommendations that allow firms maximum flexibility in their planning.

If you’d like to learn more about how Feit can provide your firm with recession-proofing roadmap, please reach out to us here.

About the Author

Michael Feit earned his J.D. from the Loyola University School of Law in Chicago and was an executive at Westlaw before founding Feit Consulting 16 years ago. Feit Consulting partners with law firm administrators and legal information professionals to optimize vendor contracts and the management and delivery of legal information resources by providing leading-edge, customized solutions. Contact Michael at mike@feitconsulting.com