Allen & Overy (A&O) has increased its spending on technology by 5 per cent during the 2016/17 financial year as part of a bid to boost flexible working and stay at the forefront of legal market technology trends.
The magic circle firm confirmed the budget increase, although not its size, during research for this year’s UK 200: Business Services report, which will be published on Monday.
Asked how the firm’s budget for IT-related investment for the 2016/17 financial year compares with last year, A&O said: “It is 5 per cent higher this year”, adding, “we are investing in legal technology platforms and technologies that support a more flexible and mobile workforce”.
Technology and innovation now plays a key role both in how A&O delivers its services to clients and how it believes it is perceived by the market. Indeed, in the report A&O claims that the use of technology has “contributed to changing the market perception” of the firm.
“We are viewed as leading the field globally among big law firms in the deployment of alternative delivery techniques,” claims A&O. “It has therefore been a significant contributor to our conscious placing of innovation at the core of A&O’s brand. In a dynamic market where change has become accepted as normal, we are viewed as a firm that embraces change as a client opportunity, not one that resists change and considers it a threat.”
Specific technology-related initiatives the firm has introduced over the past 12 months include the launch of MarginMatrix, a system to help banks deal with new regulatory requirements on which A&O teamed up with Deloitte.
A&O describes MarginMatrix as an “end-to-end solution to our clients” delivering a “regulatory compliance and contract lifecycle outcome at scale, with a technology application at its heart”.
According to A&O, MarginMatrix has “redefined what clients can expect of a law firm which is willing to embrace innovative ways of working”.
The Lawyer’s research posed a number of technology-related questions including whether IT and technology-related investment has moved higher up the strategic agenda at UK 200 firms. An overwhelming majority of of firms (84 per cent) said that it had.
Simon Adcock, head of the professional services group at HSBC, said: “We see a very close correlation between the survey results and the discussions HSBC is having with firms. Investment in technology is a key issue and many firms are spreading the cost through bank debt to ensure they can deploy larger scale projects quickly, minimise the cash impact to partners and ultimately, meet client demands and remain competitive.”
The full results of The Lawyer’s technology research will be included in the UK 200: Business Services report. To purchase the report please contact Richard Edwards on 0207 970 4672 or at Richard.edwards@centaurmedia.com
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