International Legal Technology Association (ILTA), and InsideLegal, the insider’s guide to doing business in legal technology, today released the findings of the “2016 ILTA/InsideLegal Technology Purchasing Survey” (survey). The survey, which is distributed to all ILTA member law firms, includes detailed technology budget data; updated information on firms’ purchasing influences and patterns; legal IT department trends and challenges; and expansive sections on specific legal technology purchases – both last year’s and those planned for the upcoming year. 2016 survey findings were presented to the vendors at the ILTA/InsideLegal’s Vendor Education Program at ILTA’s Annual Conference, ILTACON, taking place at the Gaylord National Harbor, August 28-September 1, 2016.
2016 ILTA/InsideLegal Technology Purchasing Survey highlights include:
- 53% of all respondents cited increased budgets, a 12% growth rate compared to 2015. 39% of Small Firms (1-49 attys), 38% of Medium Firms (50-199 attys) and 23% of Large Firms (200+ attys) represent the increase.
- 60% of all respondents spend between 1-3.99% of total firm revenue on technology.
- 24% of respondents spend between 4-5.99% of total firm revenue on technology.
- 22% of all respondents spend between $5,001-$8,000 per attorney on technology, followed by 20% who indicated spending $8,001-$11,000. 77% of survey respondents spend less than $17,000 on technology per attorney.
- The top five technology purchases in 2016 include: desktop hardware/PCs (61%); laptops/notebooks (59%); network upgrades/servers (53%); printers/multifunctional devices (44%); and antivirus/antispam/spyware software (44%).
- The ‘next five’ purchases include: Disaster Recovery/BC software & services (41%); security/network security/security assessment (40%); Smartphones (38%); cloud storage (34%); storage area networks (SAN) and telephone systems/upgrades (both 28%).
- Microsoft Office 365 purchases increased to 16% (from 13%).
- 17% of survey respondents purchased analytics software within the last 12 months, an 11% increase over annual purchases in 2015.
- OS upgrades: 32% of all respondents are planning to upgrade within the next 12 months versus 16% in 2015.
- Cloud storage: 25% of all respondents are planning to upgrade within the next 12 months versus 15% in 2015.
- Newly added application/service areas included security awareness training services, software and content (27%); security monitoring services for the network (27%); and artificial intelligence technology (3%).
- Internet research, peer recommendations, ILTA conferences, consultant recommendations and ILTA e-Groups are the top five influences when it comes to making legal IT purchasing decisions.
OUTSOURCING, TRENDS, CHALLENGES
- 70% of all survey respondents outsource printer repair/maintenance; website design and services (69%), followed by security assessment/penetration testing services (59%).
- 11% of respondents are currently evaluating artificial intelligence technologies.
- When asked how AI will influence legal, respondents mentioned eDiscovery (71%), document automation (41%), legal research (41%), contract analysis/automation (34%), and case/outcome predictions (24%).
- According to survey respondents, most firm BYOD policies cover Smartphones (68%) and tablets (57%) with only 24% covering laptops.
- Firms’ top IT challenges include security management (67%), user adoption/lack of training (42%), risk management/compliance (40%), and email management (39%).
- 80% of this year’s respondents reported that they use outside technology consultants to assist with some aspect of firm operations, technology and infrastructure.