Legal Business

IT departments a wasted resource in City firms, senior figures say

City law firms are being challenged to revise the way they view their information technology (IT) teams and elevate them to a far more strategic level.

As examined in this month’s special legal tech feature, the role of individuals who manage IT teams is now acknowledged as critical but firms’ thinking about where those departments fit into their hierarchy is often out of touch when compared with new entrants.

At the Innovators in Law ‘By Invitation Only’ (BIO) conference for IT directors in September, speaker Richard Tapp, company secretary and director of legal services for Carillion, told delegates: ‘I don’t think all is lost and the demand for legal services will continue but what will change is the way those services will be delivered and that will involve a greater use of technology.’

Former Clifford Chance and Olswang finance director Frans Post, who was a conference delegate, added: ‘The law firm starts with the lawyers and the new firms coming into the market start with the technology, and you know what’s cheaper and more efficient.’

IT directors at a number of City firms report regular strategic engagement with their firms’ management on strategy and at top 20 firm Taylor Wessing, IT director and BIO attendee Stuart Walters speaks to the board once a quarter and is regularly accountable to a partner-level steering committee.

‘The demand for legal services will continue but what will change is the way those services will be delivered.’
Richard Tapp, Carillion

He said: ‘I always try to have a conversation with the business about what else makes their life easier. There are more efficiency requirements and this is definitely being driven by the board and the managing partner and thought leaders.’

However, Post added: ‘If you were to draw a modern law firm from scratch you would have IT and law working together to design the optimal process of service delivery – on the same level, looking in the same direction.’

IT departments could also be missing opportunities to provide clients with value-add consultancy services. Tim Bratton, speaking in his capacity as former general counsel of the Financial Times, told BIO delegates: ‘There is a real value [IT teams] can add and could be providing to clients. If a law firm had offered me a white labelled version of a document management system I would have jumped at it.

‘These are the value-add services that GCs are really looking for, not just the usual diet of breakfast briefings. Law firms should be ready to empower their IT teams. Just think, if this is done well you could generate new revenue streams.’