Not only is technology changing the legal world...

For most of those who work in the legal services industry, the level of new emerging technologies and how those technologies are impacting and transforming the industry should be clear.

However, it is not only technology that has forced many legal studies to reinvent their business model, but also demographic factors, attitudes, styles, life forms, cost restrictions, among others.

First, it should be noted that for the first time in history we face a multigenerational labour force, that is, four generations are working in parallel today; the Silent Generation, the BabyBoomers, the X Generation and Y Generation (or Millenials). In the legal industry, where many lawyers are retreating late, this represents a tremendous challenge for firms that must seek ways to balance generational gaps that can reach beyond 50 years among collaborators. The same will happen tomorrow with the entry into the market of a fifth player: Generation Z, which will continue to transform and revolutionize the dynamics of the work world.

Another factor that is changing the labour market is the constant search for a balance between professional development and personal / family life. The X and Y generations highly value a work where they can make their personal interests compatible with professional development. Both generations want to work in companies that understand that their personal life is as relevant as work life, so they can work for companies that respect departure times, holiday periods, weekends and promote their extracurricular activities. The Millenials go even further than their previous generation, for they mostly consider fixed times to be enemies of motivation and creativity. Thus, those who lead companies, we have accepted the challenge of adopting new ways of working, where concepts such as time flexibility, telework, parttime work, freelancers and virtual offices are part of our offer.

Outsourcing or outsourcing of services is another factor that has changed the market. Today's companies seek efficiency and optimization, which brings constant pressure to do more for less. In this way, many companies are outsourcing their legal services to organizations created and designed for these purposes, where the hourly billing payment methodologies are in a frank retreat. In fact, this form of fees is now classified as the antithesis of efficiency. As a result, we are increasingly the ones who have implemented alternative billing models that empathize with the reality and expectations of customers and avoid transferring structural inefficiencies to the price. This is how we manage to maximize the value we deliver to our customers and build long-term relationships with them.

The trend of ecological awareness, where "green" legal initiatives are impacting business and legal practice, is also noteworthy. In response to global warming and to clients with declared sustainability policies, legal studies are establishing green incentives that reduce costs, carbon footprint and promote social responsibility. Environmental laws are also on the increase and many firms are establishing niches of sub-practices in fair trade, renewable energy, sustainable construction and climate change.

Finally, global policies aimed at diversity, inclusion, gender equity, among others, have become increasingly relevant to the companies we provide services to, which is why not considering alignment with this trend is clearly a mistake. Today, including positive policies that promote social inclusion, religious diversity, the incorporation of ethnic minorities, among other similar measures, is increasingly valued and will soon not only be valued, but required.

In conclusion, while technology has had a strong and profound impact on our industry, other exogenous factors have also done so. So to remain in force we must observe, listen and understand the environment and be aware that we must adapt to reality. In AlsterLegal we chose that way.

Andrés Jara B.

Founding Partner

Alster Legal