Corporate legal departments have traditionally worked with external law firms to achieve their objectives, but in the past few years, this collaborative model has expanded to include a third party: the alternative legal services provider (ALSP). And while a recent Thomson Reuters report documents remarkable momentum in the engagement of ALSPs by in-house counsel and law firms alike, the three-party model is new enough that some are still striving to find that sweet spot where each team’s expertise, efficiency and productivity align.

According to Thomson Reuters, corporate legal departments are increasing their use of ALSPs so quickly that many have already surpassed the 2021 projections they set forth in 2016 for ALSP involvement. They see value in using these firms because they enable in-house counsel to: (1) gain access to specialized expertise when they need it; (2) drive greater efficiencies; (3) farm out repetitive, time-consuming work to free up their internal team members to work on more strategic matters; (4) reduce costs; and (5) meet peak demand without increasing headcount.