The 11th edition findings include ILTA law firm legal IT budgets/spending, technology purchases, purchasing influences, legal cloud computing and AI trends; legal IT challenges
The International Legal Technology Association (ILTA), and InsideLegal, an insider’s guide to doing business in legal technology, today released the findings of the “2016 ILTA/InsideLegal Technology Purchasing Survey” . The survey, which is distributed to all ILTA member law firms, includes detailed technology budget data; updated information on firms’ social media and publication preferences; an in-depth look at tablet and mobile purchasing patterns; firm legal IT challenges, and expansive sections on current and future legal technology purchases. 2016 survey findings are being presented as part of ILTA/InsideLegal’s Vendor education program in conjunction with ILTA’s Annual Conference, ILTACON, taking place at the Gaylord National Resort and Convention Center in National Harbor, Maryland, August 28-September 1.
“ILTA and InsideLegal have long collaborated on legal technology education focused on enhancing our value, not only at ILTACON, but throughout the year,” stated Peggy Wechsler, ILTA’s Program Director. “The ILTA/InsideLegal Technology Purchasing Survey is a perfect example of how InsideLegal partners with us on giving back to the industry and provides additional benefits to our vendor partners and members.”
2016 ILTA/InsideLegal Technology Purchasing Survey highlights include:
· 53% of all respondents cited increased budgets, a 12% growth rate compared to 2015. 39% of Small Firms (1-49 attys), 38% of Medium Firms (50-199 attys) and 23% of Large Firms (200+ attys) represent the increase.
· 60% of all respondents spend between 1-3.99% of total firm revenue on technology.
· 24% of respondents spend between 4-5.99% of total firm revenue on technology.
· 22% of all respondents spend between $5,001-$8,000 per attorney on technology, followed by 20% who indicated spending $8,001-$11,000. 77% of survey respondents spend less than $17,000 on technology per attorney.
· The top five technology purchases in 2016 include: desktop hardware/PCs (61%); laptops/notebooks (59%); network upgrades/servers (53%); printers/multifunctional devices (44%); and antivirus/antispam/spyware software (44%).
· The ‘next five’ purchases include: Disaster Recovery/BC software & services (41%); security/network security/security assessment (40%); Smartphones (38%); cloud storage (34%); storage area networks (SAN) and telephone systems/upgrades (both 28%).
· Microsoft Office 365 purchases increased to 16% (from 13%).
· 17% of survey respondents purchased analytics software within the last 12 months, an 11% increase over annual purchases in 2015.
· OS upgrades: 32% of all respondents are planning to upgrade within the next 12 months versus 16% in 2015.
· Cloud storage: 25% of all respondents are planning to upgrade within the next 12 months versus 15% in 2015.
· Newly added application/service areas included security awareness training services, software and content (27%); security monitoring services for the network (27%); and artificial intelligence technology (3%).
· Internet research, peer recommendations, ILTA conferences, consultant recommendations and ILTA e-Groups are the top five influences when it comes to making legal IT purchasing decisions.
OUTSOURCING, TRENDS, CHALLENGES
· 70% of all survey respondents outsource printer repair/maintenance; website design and services (69%), followed by security assessment/penetration testing services (59%).
· 11% of respondents are currently evaluating artificial intelligence technologies.
· When asked how AI will influence legal, respondents mentioned eDiscovery (71%), document automation (41%), legal research (41%), contract analysis/automation (34%), and case/outcome predictions (24%).
· According to survey respondents, most firm BYOD policies cover Smartphones (68%) and tablets (57%) with 24% covering laptops.
· Firms’ top IT challenges include security management (67%), user adoption/lack of training (42%), risk management/compliance (40%), and email management (39%).
· 80% of this year’s respondents reported that they use outside technology consultants to assist with some aspect of firm operations, technology/infrastructure and strategic planning.
“InsideLegal has partnered with ILTA for over a decade on various industry programs including the legal technology survey, now in its 11th year,” said JoAnna Forshee, CEO, InsideLegal. “We are continually astounded by the great data and participation we receive from ILTA members, and this year was no exception.”
The 29 question web-based survey was distributed to 1,231 law firms, producing 175 unique firm responses, a 14% response rate. Small Firms (1-49 attorneys) represent 42% of all responses; Medium Firms (50-199 attorneys) make up 39%, and Large Firms (200+ attorneys) account for 19%. 83% of those surveyed came from the U.S., 11% from Canada, and 6% Rest of World (a mix of the U.K., Europe, Australia, South America and the Caribbean.)
The complete 2016 ILTA/InsideLegal Technology Purchasing Survey findings report can be downloaded HERE