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The Orange Rag launches a new business section

Legal Technology Insider is launching a new section on this blog. Called Legal Business News, it follows recent consultations with readers who commented that they didn’t have sufficient time to check out other legal publications and zines for law firm-related news and would appreciate it if The Orange Rag blog could provide regular legal services industry updates to its coverage. Our pleasure and we are starting today…

One thing our readers are particularly keen to to follow is developments that could impact upon legal IT decision making. For example, if two law firms announce a merger, that frequently means a shakeup among IT customer numbers, as typically the smaller firm switches over to the larger partner’s technology platforms and, as a consequence, some vendors get to sell extra software licences at the expense of other vendors.

And, just incase you were wondering how much the UK legal IT industry is worth… our latest research suggests the total value of legal services sales this year (2012) is worth £28.5 billion. Law firms typically spend (depending upon their size and the state of the economy) between 3% (for smaller firms) and 5.5% (for larger firms) of their turnover on IT and associated expenses (including salaries). If we opt for a compromise figure of 4.25%, then the total UK legal IT industry is worth approximately £1.2 billion (£1,211,250,00) this year.

2 replies on “The Orange Rag launches a new business section”

We recently conducted a survey in North America to determine the size of IT spending at law firms, not including payroll. Some of these results will be in an ILTA story next month. I’m curious what you estimate the IT spend in the UK is without salaries.

Hi Jim – I think if you allocated 35% to salaries, that would give you a ball-park figure. Plus these figures are based on firm turnover – and the big UK firms now also have substantial overseas earnings.

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