With economic globalization, many law firms are going global. However, growing globally means that law firms need to adapt to the changes that they are likely to face. This includes unique client demands, competition, technological disruptions, and the other changes that come with the passage of time.
For example, clients determine the future of legal services and law firms need to stay updated if they intend to keep up with what clients want from them. Besides, after the financial crisis of 2008, clients grew to become far more cost-conscious, forcing a change in the way law firms typically operated.
Sudden alterations in the landscape can always occur. So, in order to challenge them, experts believe that law firms will have to embrace what many businesses are doing. To be more specific, they need to go global. In fact, here are 5 reasons indicating why this is necessary.
It is Cost-Effective
Now, before we expound on its cost-effectiveness, we must understand that there are two sides to globalization when it comes to cost. On the one hand, it can prove to be expensive to physically move into a new market. Finding reliable talent to carry forward their goals can add to the list of expenses as well. In addition, it can be difficult for a law firm to charge the same prices in a new market as they do back home.
However, there are law firms that have managed to establish operations in low-cost markets to carry out routine tasks and back office functions. In fact, more and more law firms are already doing this to balance out their expenses.
As long as a balance between quality and cost can be struck, going global is the wise thing to do.
It’s Easier to Cater to Clients
Newer markets open up doors to newer clients. Even if you do not move physically into new markets, this shouldn’t be a problem considering that technology is simplifying the way the legal industry functions now. From knowledge management systems to conferencing tools, it has become significantly easier to interact with clients from anywhere in the world.
A Diversified Market
By going global, law firms can diversify their market and reduce their dependency on a single market. A diversified market means there’s a broader client base upon which law firms can depend on.
First Mover Advantage
Going global opens doors to new possibilities. For instance, law firms can be the first to fill up a vacuum that might exist in certain markets with regard to particular legal services. Being one of the first to offer a particular legal service, it allows the expanding law firm to enjoy the first-mover advantage, build a base early, and gain momentum before competition sets in.
An Escape from Stagnant Markets
After a point, markets can become stagnant. The rate of growth can plateau. Law firms can overcome this stagnancy by expanding beyond their home turf. Additionally, this allows them to stay ahead of the race.
There are plenty of reasons for law firms to go global. However, the most important reason at the end of the day is that it simply needs to be done. Globalization is the new mantra and if you’re not going global, your competitors are. The last thing you may face is to be left behind in the race.