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.