The legal technology landscape has evolved at an incredible pace, presenting law firms with exciting opportunities to innovate and streamline their operations. But with firms now under increasing pressure to reduce costs while maintaining high-quality service, some may feel pressure to turn to non-specialized software solutions to save money. While these lower-cost alternatives may seem appealing at first glance, they often come with hidden costs that can have a significant negative impact in the long run.
When it comes to critical operational functions such as onboarding, conflicts checks, and terms adherence, underinvesting in generic software systems can create more problems than it solves. These processes are foundational to smooth operations, maintaining ethical standards, and ensuring client satisfaction. Cutting corners by opting for inexpensive, inadequate software may save money initially, but it can ultimately harm the firm’s reputation, efficiency, and long-term growth potential.
Software challenges for law firms
Before diving into the ramifications of underinvesting in software solutions, let’s take a look at the particular hurdles law firms must clear:
Intake: The first step in client relationships
Client onboarding is one of the most important aspects of a law firm’s operations. And with changing client expectations, the intake process needs to be fast, smooth, and secure. “The client onboarding process is incredibly important in establishing a positive relationship,” says Eric Nerland, Intapp Compliance Practice Group Lead. “Firms can’t afford to have clients waiting or facing issues right out of the gate.”
Outdated or manual intake systems create significant delays. Firms often rely on paper forms, spreadsheets, or basic software that requires substantial manual input. These processes are slow and error-prone— ultimately affecting client relationships and potentially causing lost business opportunities. Not only does it waste valuable billable hours, but firms also risk losing clients if their onboarding experience feels slow or disorganized.
Conflicts: Navigating complexity
Legal conflicts are becoming more complex, especially as firms expand globally and hire lateral talent from diverse backgrounds. The risks associated with missing conflicts of interest are severe, including ethical violations and reputational damage that could harm client relationships and hinder the firm’s growth. “A missed conflict can have a major impact on a firm’s credibility, and the effects can be long-lasting,” says Nerland.
Outdated conflicts-checking systems increase the likelihood of missing key information when evaluating conflicts, putting the firm at risk of violating ethical rules. This could lead to delayed resolutions, potential lawsuits, and regulatory penalties. In the worst-case scenario, it could tarnish the firm’s reputation, making it harder to attract new clients or top talent.
Terms: Managing agreements and compliance
Effective OCG and contract management are essential for maintaining proper client obligations and avoiding billing disputes. Poor contract management and failure to adhere to agreed-upon terms can lead to write-offs, billing disputes, client dissatisfaction, and compliance violations. “Firms that fail to track and manage client obligations effectively risk revenue leakage and client churn, which is a major financial risk,” says Nerland.
A lack of robust software to manage these critical aspects can result in financial losses, as use of inaccurate approved language and billing requirements can affect the firm’s bottom line. When terms aren’t adhered to properly, it can also lead to a breakdown in trust between the firm and its clients, further damaging the firm’s reputation.
The hidden costs of bargain solutions
Bargain software may look enticing at first, but these solutions often come with hidden costs that are far greater than the initial savings.
Reduced efficiency
Low-cost software typically lacks the features and functionality of more comprehensive solutions. The inability to automate key processes means more time spent on manual tasks, such as back-and-forth with clients to gather information or doing research on the web, instead of having that data directly imported from the client. “Firms can save money initially, but the amount of time spent on rework and manual tasks quickly adds up,” says Nerland.
Increased risk of errors
Bargain software tends to have fewer features for ensuring accuracy. This increases the likelihood of errors, which could have serious consequences. Inaccurate conflict checks can result in missed client obligations, while poor contract management can damage a firm’s reputation, incur legal penalties, and even lose clients.
Integration challenges
As law firms adopt a range of tools for various functions, they must ensure that software integrates seamlessly with other systems. Many bargain software options are not designed to integrate well with existing systems, creating operational headaches down the road. This integration issue can lead to inefficiencies and errors, forcing firms to spend even more time and money troubleshooting and fixing problems — or purchasing additional modules and tech to patch together a working system.
Scalability issues
Perhaps the most significant cost of choosing bargain software is its inability to grow with the firm. As firms expand, their operational needs become more complex, and systems that worked in the short term may quickly become inadequate.
“Choosing a system that’s scalable from the start is key,” says Nerland. “Law firms that choose a solution just because it’s cheaper now will find themselves in a tough spot when it’s time to scale up.” The hidden cost here is the potential need to switch to a more robust system later—an expensive and time-consuming process that could disrupt the firm’s operations.
Evaluating software solutions: What to look for
When evaluating software for critical functions like onboarding, conflicts checks, and terms management, it’s important to look for solutions that can grow with the firm. Look for features that enhance efficiency, accuracy, and integration, such as:
- Robust conflict checking: A system that can handle complex conflicts and integrate with existing databases as well third-party data providers
- Client obligation tracking and reminders: Automated tracking to ensure that no obligation is overlooked
- Seamless integration: The ability to easily connect with other tools the firm already uses
- Regular updates and scalability: The software’s ability to evolve as the industry does with new features, such as AI capabilities, and also adapt to the firm’s growing needs
Vendors with a solid track record, like Intapp, offer comprehensive solutions with robust features, constant updates, and reliable customer support. “Intapp is the clear market leader and the trusted choice for firms that want to avoid the hidden costs of cheaper, less comprehensive software solutions,” says Nerland.
No matter what, investing in quality software for critical law firm functions is an investment in the firm’s future. While bargain solutions may seem attractive at first, their hidden costs in terms of inefficiency, errors, and missed growth opportunities can far outweigh any initial savings.
Law firms should think long-term when selecting software and prioritize solutions that are scalable, reliable, and future-proof.
If you’re ready to reassess your firm’s software strategy, learn more about Intapp Intake, Intapp Conflicts, and Intapp Terms—solutions specifically designed to grow with your firm.