Login
Growth of NewLaw space ‘shows no signs of slowing down’
As the NewLaw sector continues to redefine the legal landscape with its transformative nature, the two founders of a Melbourne-based NewLaw firm have underscored the imperative for legal firms to evolve accordingly.
Grace Robbie
In an industry traditionally characterised by its rigidity and formality, the NewLaw sector is bringing about a substantial change in the delivery and perception of legal services within the profession.
What is driving this change?
The co-founders delineated how the rapidly evolving expectations and demands of both customers and employees have led to the emergence and growth of NewLaw firms.
Hannah observed how clients wanting to seek legal services that are not only flexible but also commercially savvy has, in turn, driven the presence of NewLaw firms.
“People – both client and employee expectations are changing. Clients want more solutions-focused advice, in ways that are adaptable, commercial and suit their business needs,” Hannah said.
On the other hand, Hannah also pointed out how lawyers, like their clients, are increasingly expressing a desire for enhanced flexibility in their work environment and the development of more meaningful connections.
“In a not too dissimilar way, lawyers are looking for more flexibility in how they work and opportunities for building deeper relationships with clients and advising in ways that feel value-based and fulfilling,” Hannah said.
In house nous has also expressed how “the growth of the NewLaw space shows no signs of slowing down, as client and employee-led demands drive continued evolution and expansion of its service offerings”.
Comensoli also emphasised the significant impact technology plays on the rise of NewLaw firm models, highlighting its dual role as a driver of change and a means of enhancing operational efficiency.
“Technology is also a big driver of growth, providing the means to deliver services more efficiently and in ways that create added value for clients,” Comensoli said.
“With this also comes more awareness than ever of a client’s options for legal solutions and access to a plethora of services from legal tech start-ups and low price point, online offerings. As a result, starting their legal support journey with traditional law isn’t always the norm now.”
Shifting client demands
The emergence of NewLaw firms mirrors the evolving needs and expectations of clients and employees within the legal industry as their requirements become more specified and nuanced.
In today’s business environment, Hannah underscored the evolving client expectations for transparent and predictable pricing models, reflecting their desire for enhanced value and flexibility in legal services.
“Clients want outcomes based on what they perceive as valuable and flexible pricing models that haven’t traditionally been an option. This includes via subscription models, retainer and fixed fees,” Hannah said.
Hannah also recognised the increasing client demand for legal counsel that is not only legally sound but also tailored to meet clients’ business-specific needs and aligned with commercial considerations.
“It also extends to the format of the advice they receive – they want something that’s already been through a commercial lens, that’s right for their risk appetite and legal maturity and that they don’t need to translate before implementing it in their business,” she said.
Outlining how clients demand practical, business-oriented legal advice, Hannah indicated that there is a shift in clients wanting to receive traditional legal solutions.
Best practice for the future
As the legal landscape and clients’ needs continue to evolve, it is imperative for law firms to adopt best practices to ensure that they align with these changing demands.
Comensoli articulated that despite the evolution of the legal profession, various service offerings continue to be crucial. It’s not a matter of NewLaw dominating the legal landscape but rather coexisting within the legal environment.
“There remains a place for all types of service offerings in the legal ecosystem. The profession can’t exist without BigLaw. We need them. Our clients need them. So it isn’t so much about competing but coexisting and collaborating,” Cpmensoli said
However, she contended that firms positioned to thrive in the constantly changing environment and maintain their competitive edge are those that prioritise their clients and demonstrate adaptability.
“The demand for legal services will, however, continue to be shaped by clients, and so the firms that aren’t client-led might be left behind,” Comensoli said.
