LexInsight — creating the Uber moment for the eDiscovery industry!
On-demand marketplaces have been around for quite some time now. Initially popularized by Amazon, marketplaces have been the foundation for some of the most successful businesses of our time, including Uber, AirBnB and Craigslist.
So, why is the marketplace model so popular? There are 3 primary reasons:
- Marketplaces facilitate access between both sides at a scale not achievable through individual interactions.
- Marketplaces generate value for both sides of the platform.
- Marketplaces remove intermediaries and provide complete transparency.
The Uber moment for eDiscovery services
LexInsight is a specialized marketplace that has been built from the ground up keeping the needs of eDiscovery and Document review professionals in mind. In fact, it’s the world’s first marketplace focused exclusively on eDiscovery services.
In a previous post, we talk about how LexInsight was founded, and the key needs we are trying to solve. We strongly believe that LexInsight is ushering in the Uber moment for eDiscovery services due to the following reasons:
- Facilitate access at an unprecedented scale
eDiscovery Document Review projects have traditionally been staffed through staffing agencies. These agencies generally have a limited roster of 100–300 contract attorneys, and it is difficult for employers to find specialized skills, (ex. foreign languages, subject matter expertise, etc.). The contract attorneys, on the other hand, are completely at the mercy of these agencies to ensure a steady stream of work.
LexInsight aggregates eDiscovery Document Review projects across the US, and has built a roster of high quality contract attorneys across all major cities. Through LexInsight, contract attorneys get access to projects on a national scale, while employers get access to a massive talent pool of contract attorneys which was previously not available to them. Our algorithms allow matching projects to attorneys based on experience, skills and specialized knowledge (ex. foreign languages, subject matter expertise, experience with specific platforms, etc.). Employers can also browse through the profiles of contract attorneys on the platform and invite talented attorneys to join their project.
2. Generate value for both sides of the platform
Our recent article on How LexInsight is returning control of billing rates back to the attorneys talks about the industry trend of downward pressure on attorneys’ billing rates. According to the article, a contract attorney’s ability to exercise self-determination is significantly eroded by the prevalence of large staffing agencies within the document review marketplace, and their strict control of attorneys’ billing rates. Over the last few years, the national average billing rate received by document review attorneys has dropped from $38 per hour to $27 per hour, a 40% decrease. But these reductions in staffing rates are often not being passed on to the employers by the staffing firms. Their persistent high markups on attorneys’ billing rates keep adding to their profits, while both the employers and contract attorneys keep losing out.
LexInsight’s objective is to generate value for both sides of the platform. Through an online bidding system for eDiscovery projects, LexInsight allows the contract attorney to negotiate his or her billing rate directly with the end-client. Without the staffing agency acting as a middleman, contract attorneys are able to receive higher rates for their services, while providing the end-client with an overall cost savings. We only charge a nominal convenience fee for use of the platform, and pass on the remaining value to our attorneys and employers.
3. Provide complete transparency
One of the key complaints we heard from both sides during our initial conversations was the lack of transparency in dealing with staffing firms. There are often no objective performance evaluation criteria for contract attorneys, which makes it difficult for employers to consistently get great people, and for high performers to stand out. All billing is handled through staffing firms, which often lack a transparent process for handling billing disputes.
We have designed LexInsight with transparency as one of its foundational principles. Through LexInsight, we put attorneys directly in touch with employers, and our transparent and fair bidding system ensures that employers get the best attorneys to fit their budget. We encourage direct communication between the attorneys and the clients during the course of the project to ensure the best outcome. At the end of the project, we request clients to provide an objective review of the attorney’s work which can be added to the attorney’s profile. Over time, we expect contract attorneys to start using their LexInsight profiles as a complement to Linkedin. We are also designing our billing process to be completely transparent, with clearly laid out dispute resolution rules.
Join our open beta today!
LexInsight is currently in open beta and we are looking for talented contract attorneys to join us. Come and be a part of our amazing community, and let us create this Uber moment together!
