Q2, 2015 Critical Trends Report (Snapshot)

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1 Q2, 2015 Critical Trends Report (Snapshot) Privacy, Security, Information Governance, and ediscovery 211 East 43 Street, Suite 1606 New York, NY (212)

2 Executive Summary The Cowen Group s Q Critical Trends Survey focused on workload, headcount and the challenges facing litigation support professionals today. Of the 135 BigLaw and MidLaw firms that responded to the survey, 58 percent of respondents reported that their workload has increased in the last six months and 68 percent anticipate that workloads will continue to rise in the next six months. Firms report that this workload increase is driven by federal and regulatory investigations, growing data volumes (in both size and scope) and an increasing number of new clients and cases. The survey also found that litigation and ediscovery headcount is up 4% with 52 responding firms adding headcount in the last six months and 33% of respondents expect to increase their headcount in the next six months. However, staff size plans for the coming six months are not entirely in line with expectations for workload changes, notes George J. Socha, Jr., Esq. of Socha Consulting LLC. For firms planning to hire in the next two quarters, analyst/specialists, project managers and ediscovery associates are the top three positions planned for recruitment. The number one challenge facing ediscovery leaders is educating and training partners and staff on ediscovery best practices. 40% of respondents face this challenge, a 4% increase over Improving departmental processes and workflows is the second greatest challenge with over a third of law firms reporting difficulties in this area. Other significant challenges facing ediscovery leaders include communicating the value of ediscovery staff; staying competitive in the evolving ediscovery landscape; finding, retaining, and developing ediscovery talent; and managing growing data while staying current on information governance trends. ediscovery practice groups are still on the rise. Investment in ediscovery talent (partners, counsel, and associates) continues to outpace investment in privacy, security and governance. After ediscovery, security is the second fastest growing practice group 42% of firms report having a practice group focused on security. Privacy and security are much more established in law firms as practice groups. It makes sense in that these areas most closely align with traditional law firm practice groups, Socha says. While, ediscovery practice groups are established more so as an operational function. He also notes that information governance practice groups are still rare and few firms have practice groups dedicated to information governance. Many firms that touch on that area appear to focus on a more traditional and narrower scope of records management.

3 Workload, Headcount, and Greatest Challenges ediscovery workload is increasing. 58% of BigLaw and MidLaw respondents report an increase in their ediscovery and Litigation Support workload driven by 1) Federal and Regulatory Investigations, 2) Size and Scope of Data Volumes, and 3) Number of New Clients and Cases. September 2013 June 2014 June 2015 Next 12 mos. Increased 52% 64% 58% 68% Stayed the same 44% 25% 33% 30% Decreased 4% 11% 9% 2% 33% of BigLaw and MidLaw firms expect to ADD headcount in the next 6 months. Respondents report that over the past six months, litigation support and ediscovery departments have largely remained the same or grew. Of the 30 percent who saw their department grow, more than half added technologists and/or project managers. June 2014 June 2015 Next 6 mos. Increased 27% 29% 33% Stayed the same 52% 57% 65% Decreased 21% 14% 2% Why are departments growing? Why are departments maintaining headcount? This is a snapshot edition of the final Critical Trends Report. For more information, please contact The Cowen Group at (212)

4 Workload, Headcount, and Greatest Challenges Project Managers, Analysts, and ediscovery Associates will be the top three positions in demand over the next 6 months. Past 6 mos. Next 6 mos. Analyst/Specialist Past 6 mos. Next 6 mos. Database Administrator Paralegal/Paratechnical Project Manager ediscovery Consultant Manager Director Counsel +1 Associate Partner ediscovery workflow and attorney education continue to be the two biggest challenges facing litigation support excellence and advancement Educating partners and attorneys about ediscovery Improving departmental processes and workflows 36% 40% 40% 34% This is a snapshot edition of the final Critical Trends Report. For more information, please contact The Cowen Group at (212) *Lower bar indicates last year s responses to this question

5 Privacy, Security, Governance, and Discovery PSGD ediscovery practice groups still on the rise. Investment in ediscovery talent (partners, counsel, and associates) continues to outpace investment in privacy, security, and governance. PRIVACY 27 responding firms (35%) have a privacy practice group. SECURITY 32 responding firms (42%) have a security practice group. INFO. GOV. 27 responding firms (36%) have an info. gov. practice group. ediscovery 41 responding firms (54%) have an ediscovery practice group. (Total of all respondents: 81) (Total of all respondents: 78) (Total of all respondents: 100) (Total of all respondents: 177) (Total of all respondents: 16) 10% in the privacy practice group is (Total of all respondents: 24) 30% in the security practice group is (Total of all respondents: 24) 23% in the info. gov. practice group is (Total of all respondents: 35) 39% in the ediscovery practice group is a privacy practice group in: a security practice group in: an info. gov. practice group in: an ediscovery practice group in: Our independent analysis of publicly available data regarding PSGD practice groups unveiled that 159 of the AM LAW 200 firms currently have at least one privacy, security, governance, or ediscovery practice group. Additionally, over 6,800 attorneys currently work in privacy, security, governance and/or ediscovery practice groups in the AM Law 200 firms.* *Some attorneys are in more than one practice group and as a result may be counted more than one time.

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