Document Automation vs. ALSP: Which is Right for Your Firm?

Technology’s driving shifts in every industry, and the law is no exception. New tech promises to help you address your biggest challenges, and you do your best to choose the right solutions for your firm. This process is common when it comes to document review and contract management when your goal is to implement an efficient document generation process that produces profit and mitigates risk – without taking time away from your clients or practice. You could use a legal document automation software like HotDocs – or outsource these tasks to an alternative legal service provider (ALSP). Allow us to explain the differences between the two.

ALSPs are businesses that provide legal services at a lower cost than traditional law firms. They break down certain processes and perform them more efficiently than a law firm could, passing along the benefits of increased expertise, flexibility, and speed to their clients. ALSPs can specialize in almost any legal process, from document review and contract management to investigation support and legal research. Many times, firms outsource to ALSPs when they don’t have the internal resources – including the necessary financial and human capital – to perform these tasks in house, which would put them in a position to farm out services to a specialist.

By contrast, document automation software integrates with your internal systems to help you generate documents efficiently, accurately, and consistently. Tools like HotDocs meet your document production requirements with a template-authoring interface that makes it easy to design, build, and manage templates. They also offer drafts and up-to-date terms in your documentation, helping you catch mistakes and ensure compliance. Let’s not forget about integrations or security; leading document automation tools offer scalable integrations that make it easy to manage users, permissions and groups. Moreover, built-in private cloud services offer backup, storage, and support.

There are many reasons for implementing a document automation tool for document review and contract management is more advantageous than turning to an ALSP. For one, a document automation software provides a single point of contact if you need support. This isn’t necessarily the case at an ALSP, where the paralegal’s responsible for business functions like sales, client service, and billing. Paralegals at an ALSP are limited on time to focus on your case. Additionally, ALSPs are also becoming less prevalent. Full-service firms like PWC and Deloitte have begun to address the legal outsourcing trend by creating in-house departments that mimic the ALSP model.

To summarize, ALSPs can struggle to provide the full support you need for document assembly. A result of industry pressure, ALSPs are more of a trend than anything. On the other hand, a document automation tool is powerful technology that helps you generate business documentation and makes your organization more efficient. Software like HotDocs also scales to your firm, includes tech support, and eliminates costs associated with unproductive processes. Trust a proven document automation solution over an ALSP every time.