Crescent School of Law: VIRTUAL LAW FIRMS - BEGINNING OF A NEW ERA?_CRESCENT SCHOOL OF LAW

VIRTUAL LAW FIRMS - BEGINNING OF A NEW ERA?

Introduction

Technology has impacted almost every aspect of our lives. Isn't it fascinating how modern technology has advanced in recent years and how it has made connecting and communicating much faster and easier! Have you ever wondered what technology means and what does it refers to? Does it refer to a smartphone? Or does it refer to the artificial intelligence which is driving our cars?

Steve Jobs stated "Technology is nothing. What's important is that you have a faith in people, that they're good and smart, and if you give them tools, they'll do wonderful things with them." Those tools have helped to achieve growth and advancement in various fields. Have you ever thought about what the tool could do if it was ever wielded by law and created virtual law firms that have revolutionized how the legal industry works in recent times? Yes, you read that right! Let us discuss it in this article!

Rise of Virtual Law firms

The outbreak of the Covid-19 crisis and lockdown has made us realize the truth that lawyers and law firms can work virtually or what we now call 'work from home. However, even before the covid-19 pandemic, various virtual law firms evolved in America and the United Kingdom, operating mainly using cloud computing technology. It has also helped reduce costs and provided flexible working hours for lawyers.

Who is a Virtual Lawyer?

A virtual lawyer is just the same as a real lawyer who works through a secured client portal that is attached to a law firm's website but operates from the homes or satellite offices, usually delivering services to clients at distance using technological means of communication.

Technology as a tool in virtual law firms

Previously we saw who is a virtual lawyer and now we will see how he wields the tool of technology in law firms. Technology is used for various functions such as online calendars for consulting services, video conferences, document sharing and storing through cloud systems, online payments, client portal management virtual reception services, encrypted messaging, and also in management services. By adopting these technologies, lawyers manage their firm to be flexible, accessible, and safer to practice in legal aspects as well.

Access to work from anywhere

When it comes to running a business, accessibility can open a large pool of potential customers, isn't it smart to make money while having a cup of coffee in a restaurant? This has become reality by equipping technology in law firms, which has given easy access to work from anywhere. It doesn’t matter whether it's your home or a coffee shop when the work is getting done. So, it is clear that virtual law firms have made work for lawyers more accessible.

What is a Client Portal?

As we have mentioned earlier, “virtual lawyers work through a secured client portal attached to a law firms' website”. So, what is this client portal? How is it used? Let us see!

The client portal is nothing but a gateway, which opens a path for collecting various digital files, data, information by unlocking the internet using the web browser as a key. So, putting it clearly, a client portal is a medium to connect the client and organization, through which all forms of secured documents, services, and data with hardly any chance of loss, as it is, are stored in a cloud system and easily accessible to clients.

Advantages -

Cost efficiency

Cost efficiency is one of the primary advantages of virtual law firms. It helps a lawyer by cutting unnecessary overhead costs thereby reducing the overall cost base of the firm. Unnecessary overhead costs like renting or leasing a workplace, computers, printers, fax machines, and filing cabinets do not cut in the firm’s margin. It is made possible by using purpose-built cloud-based practice management software to run a fully functioning law firm from any device such as a smartphone, tablet, etc. at a fraction of the cost.

The flexibility of work

The ability to work whenever and wherever you want can increase productivity and reduce stress. This advantage of flexibility saves lawyers from uniform code and traveling hours and also provides fewer working hours in a stress-free environment.

Easy to set up and expand

It is easy to set up a virtual law firm as it is less expensive, it also provides the ability to reach people who are far away by eliminating the problem of geographical boundaries by offering an open line of communication, thereby increasing the revenue which can be used to expand the business by cutting all the overhead costs

Ability to make profits

The ability to make a profit is enormous in this type of business model. The revenue is more because of the cutting down of overhead costs. This revenue managed properly can be used in various ways like better ability to predict customer wants and needs more effective pricing strategy, expansion of markets, and a strong relationship between firm divisions, which can make even more profits.

Competitive rates

Competitive rates are an advantage that catches the eye of the clients. Clients find virtual law firms more attractive as it costs lesser than traditional law firm. This is made possible due to the low cost incurred in running virtual law firms. Competitive rates also allow us to regulate the competition and prevent loss of customers and loss of market share to the competitors.

Eco friendly

Virtual legal practice is also eco-friendly as there is no paperwork involved in this type of practice. An eco-friendly mode of practice is demanded due to global warming and pollution, the virtual modes help us in achieving it.

Disadvantages-

Lack of Personal touch

The relationship between attorney and client is one of trust and confidence of the highest order. So, it is not easy for the clients to share emotional and sensitive information with their lawyers without a proper connection and in lack of personal face-to-face meeting. This lack of personal touch is a setback to virtual law firms.

Not suitable for all kinds

Virtual law firms may not be suitable for all kinds of practices. In some serious matters, lawyers may need to get closer to their clients especially when it involves sensitive information, which is hard to achieve in this virtual model, resulting in restricting the practice area of a firm.

A balance between work life and personal life

The virtual model does not create a proper work-life balance. Work-life balance is said to be illusionary in virtual firms. working hours without a proper schedule creates confusion in time management. It is hard for a virtual lawyer to maintain a particular schedule. This is why a lot of lawyers still prefer to work in a proper work atmosphere and a scheduled working pattern.

Lack of traditional office feel

By nature, human beings are first and foremost emotional creatures. We are motivated and activated by emotion. But this motivation and activation can only be achieved by having connections more than business, which cannot be done easily in virtual law firms. This can also lead to poor coordination and may also affect the mental health of a virtual lawyer.

Conclusion

Is it the beginning of a new era? yes, virtual law firms are undoubtedly the beginning of a new era. HG Wells famously wrote in 1945 that “Adapt or perish, now as ever, is nature's inexorable imperative.” Every firm needs to update to this technology not only to remain in the competition or to make more profits but also to satisfy their clients and more importantly help the evolution of the law field according to the changing circumstances.

References

1. Ron Friedman, Law Firms going Virtual, (2021 18/01, 9.01 AM IST)

https://prismlegal.com/law-firms-going-virtual/

2. Law Prism, Pros, and Cons of a Virtual, (2021 18/01, 9.31 AM IST)

https://www.lawtechnologytoday.org/2018/03/virtual-law-office/

3. AMATA, 3 Considerations for Becoming a Virtual Law Firm, (2021 18/01, 10.02 AM IST)

https://ablog.amatacorp.com/blog/posts/becoming-virtual-law-firm/

4. Rashi Singh, Rise of virtual lawyers and virtual firms: new opportunities are growing, (2021 18/01, 12.00 PM IST)

https://blog.ipleaders.in/rise-virtual-lawyers-virtual-firms-new-opportunities-growing/

5. Wolters Kluwer, the rise of the virtual lawyer: Why virtual law firms are replacing traditional practices, (2021 18/01, 1.02 PM IST )

Virtual Law Firms VS Traditional Law Firms: Let's Hear From the Virtual PROs - Blogs - ADAMGlobal

6 . Steve Jobs on technology(2021 18/01, 1.30 PM IST)