Law Times

July 25, 2011

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law Times • July 25, 2011 NEWS PAGE 3 BY MICHAEL McKIERNAN Law Times Canadian legal process outsourc- ing market in a move uncharac- teristic of most notoriously risk- averse litigation partners. "People thought I was a bit E crazy," she says. What started as an academic interest for a lawyer who "could have used some extra hands on fi les" in her practice at Davies Ward Phillips & Vineberg LLP transformed into a genuine busi- ness opportunity as the entrepre- neurial juices began fl owing. "Risk grows on you, and once I'd decided to leave this job that I love, it was then just a matter of growing used to taking risks, one risk after another, and being pre- pared to fail, being prepared that the Canadian market might not be ready to adopt this new idea. But thankfully they have, which has been great," Austin says. But the litigator in her did shine through in the slightly more conservative approach she took to establishing her own fi rm, ATD Legal Outsourcing. Canadian law societies have been virtually silent on the issue of legal outsourcing, so the fi rm played it safe as far as regulatory issues go. "We are a law fi rm with the same rights and obligations as Shelby Austin took a risk in leaving Bay Street to start her own outsourcing fi rm. all other law fi rms," she says. "Our particular model is quite traditional, and our culture is quite traditional." Th e fi rm employs fi ve lawyers full time. It also hires from its bank of trained contract lawyers for specifi c projects. ATD targets law fi rms for its services rather than corporate legal departments because it wants lawyers to view it as a complementary service rather than competition, says Austin. "One of the reasons for Risk-averse lawyers move slowly on outsourcing LegalInnovators ighteen months ago, Shelby Austin ditched Bay Street to enter the nascent our success is we are the Ontario bar. We have worked in these fi rms. Th ese are our colleagues, these are our friends." Th e bulk of ATD's clients for its services, which include document review, due diligence, legal research, and legal writing, are big Canadian law fi rms, al- though Austin also plans to tar- get smaller fi rms that could turn to outsourcing to level the play- ing fi eld on larger fi les. Sarah Millar, a litigator at Os- ler Hoskin & Harcourt LLP, has used ATD for document review in large litigation fi les that need to be done "quickly and inexpen- sively." Traditionally, the fi rm has used junior associates, articling students, and summer staff to do the work. It would even bring in its own contract lawyers. "We've just found that there's a lot of human resources, adminis- trative, and project-management issues that outsourcers are now capable of handling better than we can do in-house," Millar says. She notes she was particularly comfortable making her fi rst leap into the outsourcing game with ATD because local lawyers are doing the work. "Th e Cana- dian factor is a huge one. Th ey're Canadian-trained lawyers, they understand Canadian concepts of privilege and relevancy, and they're bound by Canadian ethi- cal duties as lawyers." According to Gavin Birer, legal outsourcing has been slow to take off because of fi rms' entrenched practices. Larger fi rms in par- ticular have been insulated from the need to increase effi ciency by the sheer number of lawyers they have to throw at projects, he says. "You're working against a massive status quo in terms of how work is currently be- ing done. Lawyers by nature are extremely risk-averse. Th ey don't like change, and so the uptake is slower than any other industry would be." When Birer started his own business, Legalwise Outsourcing Inc., in 2006, it was one of the fi rst Canadian companies to go down that route. In the mean- time, similar businesses had been venturing into the United States and Britain for years. Bi- rer says the much larger legal markets in those countries made them a more natural target for companies but he believes the Canadian marketplace may be approaching a critical mass. "It's like a stone that gathers moss as it goes down a hill," Bi- rer says. "It picks up momentum over time. Th e more clients use these services, the more people become familiar with it." Legalwise uses common-law- trained Indian lawyers based at offi ces in Bangalore. "All of our clients are lawyers, so you can imagine they have lots of ques - tions around confi dentiality, secu- rity, quality, and price," says Birer. "Th e questions get them over that initial fear, and then it's a matter of proving to that client that we are a resource that they can rely on and that they can trust." According to Birer, corporate legal departments are key to the growth of legal outsourcing as they demand more options for reducing costs. One of them already going down that route is the Royal Bank of Canada. Emily Jelich, associate general counsel at the bank, says her company makes signifi cant use of outsourcers for multi-jurisdic- tional projects and non-complex document review. She sees out- sourcing as an untapped resource in Canada and notes she's often the one to initiate its use. "Th e fi rms that have most in- terest in being a partner with us are the most open to it," she says. "Our goals are to get work done effi ciently in a cost-predictable way. Outsourcing fi rms help us do that, and I think they help law fi rms fi gure out how to do that as well." This is the second article in Law Times' summer series on innova- tion in the law. EFFECTIVELY COLLECT AND PRESENT DNA EVIDENCE DNA: A PRACTICAL GUIDE DAVID ROSE AND DR. LISA GOOS Gain valuable insight into investigating, prosecuting and defending charges involving DNA. 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AVAILABLE RISK-FREE FOR 30 DAYS Order online at www.carswell.com Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 • Procedural issues • Constitutional challenges • Appellate issues • Types of orders Untitled-5 1 www.lawtimesnews.com 7/19/11 1:52:46 PM

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