Why Outsourcing Fails and What Law Firms Need to Do Differently

Outsourcing should be a strategic win for law firms. When implemented well, it delivers measurable savings, higher service levels, and better resource alignment. But when it fails, the cost isn’t just financial. It affects service quality, staff productivity, and even client satisfaction.

In our experience, the difference between success and failure comes down to how well the strategy is planned, executed, and managed over time. It is not about which vendor you select.

Outsourcing Isn’t the Problem. Execution Is.

We’ve seen firms stumble when they approach outsourcing as a quick fix. Maybe there’s a budget shortfall. Maybe a vendor pitches a promising deal. But without a thoughtful, needs-based strategy, the wheels come off.

Success requires:

• A clear understanding of current internal operations

• Well-defined performance goals

• Alignment with long-term firm objectives

  
  

Most critically, firms must continue managing the relationship long after the contract is signed. The contract is just the starting line.

Lack of Vendor Oversight Creates Long-Term Issues

Firms that treat outsourcing as a set-it-and-forget-it solution often find themselves dealing with unresolved issues, internal frustration, and creeping costs. One Am Law 200 firm we worked with came to us after five years of a hands-off approach. They had no visibility into service metrics and were being billed for services that no longer existed.

After implementing a structured oversight model, the firm saw:

• A 15% reduction in annual spend

• Improved user satisfaction scores

• Timely resolution of service issues

Someone needs to own vendor performance. This can be done internally or with support from a partner like Mattern.

Market Blind Spots Lead to Unnecessary Spend

Outsourcing contracts are complex. Providers negotiate them every day. Law firms do not. That imbalance leads to missed savings, outdated terms, and one-sided agreements.

If you don’t know what the market supports, you can’t negotiate effectively. In one recent engagement, a firm saved over $500K annually by renegotiating an inherited contract with terms that hadn’t been updated in over a decade. The provider didn’t push back because they simply hadn’t been asked.

Security Isn’t a Checkbox. It’s a Daily Discipline.

When client data leaves your building, your risk profile changes. It’s not enough to rely on vendor assurances.

Security protocols should be:

• Documented in the contract

• Supported by physical safeguards and access controls

• Audited regularly through site visits and compliance checks

We’ve helped firms catch red flags early, including off-site facilities with no badge access controls and insufficient data retention policies. These are not theoretical risks. They are operational realities.

The Mattern Perspective

Outsourcing can deliver meaningful value, but only when it’s treated like a core business function. That means managing the process, knowing the market, holding vendors accountable, and protecting the firm’s interests from day one.

If your outsourcing model isn’t delivering what it should, let’s talk. Contact info@matternassoc.com.