The pandemic and associated lock-down has had an impact on businesses across most industries. Law firms have not been immune, with clients reducing their business activity, several M&A transactions on hold and many courts closed. A recent research report for law firms estimates a revenue decline of 15-20% in 2020 compared to the previous year* which will have an even greater impact on profitability, driving many law firms to the difficult decision of freezing costs and in some cases taking more drastic measures such as reducing staff hours and cancelling partner pay-outs.
The restrictions on movement have also highlighted the importance of technology. Like most of the world, law firms have also had to make the transition to a work-from-home environment, relying more than ever on technology to connect employees and drive efficiency. For firms that invested in, particularly, cloud solutions and collaboration tools over the last few years, the transition to a remote workstation has been easier. However, as an industry the legal world has tended to lag in technology adoption to general businesses** and many are expected to play catch-up over the coming years if they are to successfully “futureproof” against other scenarios.