Digitalisation as a strategy for the future: opportunities, hurdles and investments

Those law firms that are already highly digitised are more likely to continue to prioritise digitisation. This is particularly due to clear advantages: improved data management, more flexibility and increased efficiency in day-to-day work – factors mentioned by the majority of respondents. These law firms also benefit from reduced administrative work and an overall easier organisation of work.

Despite the advantages, the costs of digitisation are a significant factor. In particular, external IT services and expenditure on data security are considered costly by two-thirds of the law firms. At the same time, it has been shown that the digitisation of analogue processes offers considerable potential for savings. Examples include reducing paper consumption through electronic documents, using digital communication platforms instead of postal mail, and implementing cloud-based data storage systems.

The most frequently used digital tools in law firms include PDF editing software, used by three quarters of respondents, and time tracking systems for digitally documenting hours worked. Document management systems (DMS) are used by almost 40 per cent of law firms and facilitate the centralised management and access to important files. Cloud-based platforms are also gaining in importance as they enable location-independent working and promote collaboration within teams. These tools play a key role in making day-to-day work more efficient and minimising errors.

The study shows that the “digital” mode is becoming increasingly prevalent in law firms, particularly for impersonal and recurring tasks such as document processing, digital exchange and electronic signatures. Hybrid approaches are used primarily for person-related tasks such as meetings or internal communication, as they combine efficiency and personal contact. Analogue processes are rarely preferred and mostly concern processes such as communication with courts or internal meetings. However, the survey makes it clear that the desire for complete digitisation is increasing significantly even in these areas.

Based on the results, a digitisation cost calculator was created. With this web tool, law firms can enter their characteristics and the digitisation steps they want to take, and then receive a cost estimate. This provides orientation and creates transparency with regard to digitisation costs. The law firm cost calculator is publicly accessible (law firm cost calculator for law firms).

The report and the legal fees calculator are based on a representative survey of 489 law firms in Switzerland. The survey took place in the summer of 2020. More information and a detailed insight into the results are available in the final report. In addition to the survey, all law firms that provided their costs received an individualised brief cost report that compared their costs with those of similar law firms. This allows for benchmarking and additional insights on an individual basis.