Law.com Barometer: Outsourcing in Big Law is Accelerating

The Shift

Law firm partners are learning as they go this year, especially on how to dramatically cut costs. One method: layoffs tied to outsourcing and streamlining jobs. The move — shifting jobs to a central location or to a third party — has sharply accelerated in 2020, as law firm leaders are taking advantage of pandemic circumstances to dramatically reduce overhead and keep profit margins steady.

For instance, Thompson & Knight, partnering with outsourcing company Williams Lea, has opened an administrative center in Columbus, Ohio. Winston & Strawn has created a new center for professional support services.

In both cases, the firms confirmed they laid off employees. Winston said the arrival of a center that will provide 24/7 professional support services for attorneys and clients will involve the "elimination of certain roles." Thompson's managing partner, Mark Sloan, said because some functions moved off-site, the firm eliminated some positions in its document processing and graphic design departments.