Our Friend Rob Robinson at ComplexDiscovery just published the Summer 2023 eDiscovery Business Confidence Survey results. Here is our take on the results:
With responses from 71 individuals from technology providers, law firms, consultancies, and corporates, we have a great mix of thoughts from people at a variety of organizations. With over 97% of respondents stating they see overall business conditions as good or normal, the prevailing sentiment is quite positive. In even better news, when asked about their outlook for the next six months, most respondents (55%) stated they see business getting even better, with 45% projecting the same and 0% expecting conditions to decline. That is all great news for legal tech!
What does this mean for the job market?
A stable outlook usually means employers would be comfortable enough to invest in research, developing new technologies, training staff, and hiring new employees. This positive trend may also stave off reductions in force for the rest of the year. With stable or better business conditions, companies should maintain current levels of staff to handle the workload and possibly augment their existing workforce with new hires.
Increasing vs. decreasing eDiscovery revenues expected: Will this mean higher salaries or bonuses?
44% of respondents stated they expect higher revenues in their segment over the coming months, 50% expect the same, and just 5% foresee a decrease. With higher revenues coming in, we might expect to see compensation rise. But the next question does lessen our hopes: When asked about profits over the coming months, only 35% expect an increase, while close to 10% see a decrease on the horizon.
When we see companies expecting increased revenues without a corresponding profit increase, some other factors may still be in play. This could include increased software costs, higher bills to house workers coming back into the office after being remote for a few years, higher costs associated with benefits, or any number of other factors.
Question 6: This may give us some real insight into employment factors at play
The question was this: Of the six items presented below, what is the issue that you feel will most impact the business of eDiscovery over the next six months? The answers are below
Increasing Types of Data: 36.62%
Budgetary Constraints: 19.72%
Increasing Volumes of Data: 18.31%
Lack of Personnel: 11.27%
Data Security: 9.86%
Inadequate Technology: 4.23%
Based on the answers above, we can see increasing types and volumes of data garnered over 50% of the votes. Companies may need to augment infrastructure and implement new tech to handle these business issues. That tech spend may take away from many new jobs; however, the new tech usually leads to hiring talented individuals who know how to utilize the latest tech.
The lowdown:
Based on all this info and what I’ve seen in the market, I expect a steady job market for the rest of the year. Probably not too many RIFs or hiring sprees, but some new jobs that require specialized tech skills will likely be added to help implement and run applications to tackle the influx of data cited above.
David A. Netzer
President, Legal Tech Talent Network