Is Your Outsourcing Strategy Leaving the Firm Exposed?

Outsourcing can reduce costs and improve efficiency. But when the oversight isn’t there, the risk to the firm quietly grows. We've worked with firms where poorly managed outsourcing left them vulnerable to compliance failures and reputational damage. These are issues that could have been avoided with better structure.

The Hidden Risks of Poorly Managed Outsourcing

Without proper governance, firms face:

• Service quality that degrades over time

• Contracts that renew with escalating fees

• A lack of accountability when problems arise

A mid-sized firm we worked with discovered they were paying 20% above market rates due to automatic renewals buried in the contract. They had no assigned point of contact monitoring the agreement.

Data Security in a Third-Party World

When third-party vendors manage sensitive legal data, the firm’s exposure increases. And yet, many firms don’t go beyond the vendor’s own documentation.

We recommend:

• Contractual requirements for physical access controls and breach response

• Regular site visits

• Independent security audits

Security cannot be assumed. It needs to be verified.

Who’s Watching the Vendor?

Vendors aren’t responsible for managing themselves on your behalf. That job falls to the firm or to someone acting on its behalf.

With active oversight, firms:

• Keep services aligned with expectations

• Gain visibility into performance

• Maintain leverage when renegotiating

One firm we advised was unknowingly underutilizing over 25% of its contracted services. With better visibility, they were able to right-size the engagement and redirect resources.

Knowledge Gaps Cost Firms More Than They Realize

Sending out an RFP is not a strategy. If you don’t know what the market supports, the responses won’t tell you. You need a baseline.

Firms with current market insight can:

• Push for more favorable pricing

• Strengthen contract protections

• Avoid outdated or one-sided terms

The Mattern Perspective

Outsourcing must be managed like any core business function. That means oversight, strategy, and an informed approach to the market.

We help firms identify blind spots, strengthen contracts, and protect their interests over the long term. Contact info@matternassoc.com.