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Top challenges for law firms in 2023

Now more than ever, there are many different challenges facing businesses in the legal sector. In the main, these have been generated by wider changes in the business world, or in society at large: the advance of technology, the increased focus on mental health, the need for sustainability, or the drive towards diversity and inclusion, for example.

The global turbulence of the decade so far (for a number of different reasons) certainly hasn’t helped matters. But all this means that there are going to be several hurdles for law firms to navigate in 2023. This blog highlights the four biggest ones and how to resolve them, including how IT support for law firms can help.

Posted 21/12/2022

First notification of loss system

Talent attraction and retention

It’s become increasingly difficult to attract and retain the best and brightest in the legal profession for some time now, but it’s getting to the point where the talent knows they hold all the cards. Especially in light of the increase of hybrid working, and the higher priority given to work/life balance, it’s never been easier for lawyers to switch firms.

All this is giving many employers a headache as they try to figure out how to beat their competitors, and both build and maintain an excellent team. Naturally, compensation is the first port of call, but this is not necessarily enough on its own anymore.

More and more employees want prospective employers to demonstrate that they’re forward-thinking, and are willing to innovate to make their employees’ jobs easier, more efficient, and more flexible. Cloud law firm software and virtual desktop software can play a big part in helping law firms achieve this.

Cybersecurity

The threat of cybercrime is growing all the time, both in the number of hazards around and their sophistication. Law firms continue to be especially vulnerable to these threats: this is partly due to the value and sensitivity of the data they handle, but also because many firms have cybersecurity systems that are increasingly outdated.

Even relatively simple attacks like phishing are still proving to be effective when targeted at law firms, as well as data breaches that stem from inadequate protection of data, across both lawyers and clients. The consequences of these attacks can be severe in a number of different areas: legal, financial, and reputational, to name just three.

The best response relating to IT support for law firms is to adopt a managed service solution where an expert partner delivers support and technologies that keep data, systems and applications safe at all times.

More competition

Every day, more new law firms are entering the sector, competing for the same market share. In order to retain or attract a strong client base, some firms are lowering their prices, which naturally comes with a trade-off against potential revenue and profitability.

There might not be much that law firms can do to prevent undercutting by their rivals, but there are other things that they can do to maintain good levels of profitability. In particular, finding efficiencies to make operations faster and easier can yield substantial savings for a relatively small outlay.

For example, outsourcing more IT services to be run on a managed basis, allied to cloud services and virtual desktop technology, can alleviate IT admin workloads, boost productivity and enable more flexible ways of working.

Increasingly complex compliance

As the legal world continues to evolve with an ever-changing regulatory environment, law firms will need to respond in kind in 2023. Adopting modern technology and digital workplace solutions tailored to regulations, as well as lawyer and client needs, can help firms navigate this complex landscape while meeting all compliance requirements.

Innovative solutions not only ensure the secure exchange and storage of data, but they also facilitate smooth communication between firm professionals and clients to enable more effective collaboration.

In summary

As the above points demonstrate, technology has a vital role to play in helping law firms like yours respond to everything 2023 might throw at you. As well as making operations more efficient and profitable, legal technology can also help you improve client service, and ultimately access to justice. This is an area that the Oosha team feels particularly passionate about, and when you get in touch with us, you’ll discover how our range of managed services and tech solutions are crafted with those law-specific needs in mind.