Managed services in eDiscovery refer to outsourcing all or part of a company’s electronic discovery needs to an external provider. Rather than handling eDiscovery in-house, organizations work with managed service providers (MSPs) that specialize in managing data and processes for eDiscovery. This allows companies to benefit from the expertise and technologies of eDiscovery vendors while controlling costs.
Managed services can cover a range of eDiscovery tasks, including data processing, hosting, productions, analytics, review, and project management. The scope and extent of services depend on each company’s specific needs and regulatory requirements. The goal is to improve efficiency, reduce risks and costs, and leverage advanced eDiscovery technologies and expertise.
What are the benefits of managed services in eDiscovery?
There are several key benefits that make managed services an attractive option for organizations faced with eDiscovery:
– **Cost savings** – Outsourcing to an MSP allows companies to convert fixed internal eDiscovery costs into a variable, outsourced expense structure. Rather than maintaining staff and technologies, organizations only pay for services used.
– **Risk mitigation** – MSPs offset many of the risks associated with eDiscovery, from spoliation to sanctions for improper disclosure. Their expertise and dedicated resources can reduce errors and improve defensibility.
– **Focus on core competencies** – Managed services enable organizations to focus on business priorities rather than eDiscovery infrastructure. The MSP handles data management and processing as a core competency.
– **Speed and efficiency** – MSPs can dramatically accelerate eDiscovery with dedicated software, AI tools, and a trained staff. Their economies of scale deliver faster turnaround times compared to in-house models.
– **Access to advanced technology** – Outsourcing provides access to expensive eDiscovery tools and platforms without major capital investments. MSPs spread costs over many clients.
– **Flexible scalability** – Managed services offer greater flexibility to scale up and down to meet project demands. Organizations avoid getting stuck with excess internal capacity or scrambling when needs spike.
What services fall under managed services for eDiscovery?
MSPs offer a suite of managed services to handle various components of the eDiscovery workflow:
– **Consulting** – Advisory services to develop eDiscovery strategies, policies, response plans, and readiness programs aligned with regulations and obligations.
– **Information governance** – Ongoing support for IG programs focusing on defensible disposition, retention policy development, and technology optimization.
– **Identification and preservation** – Identifying sources of ESI, preserving data per legal holds, and collecting data for downstream eDiscovery.
– **Processing and early case assessment** – Processing diverse data formats into review-ready collections while leveraging analytics like email threading to prioritize and cull data.
– **Review and analysis** – Providing review platforms, staffing, and quality control to efficiently filter data and uncover case-critical details. Applying analytics like predictive coding for large-scale reviews.
– **Production and presentation** – Converting ESI into appropriate production formats and secured channels for handing off to opponents while maintaining metadata and structure.
– **Data hosting** – Securely storing and managing eDiscovery data in the cloud throughout each stage of the process.
– **Project management** – Coordinating tasks, workflows, and stakeholders throughout the eDiscovery life cycle to ensure consistent communication and defensible documentation.
What are the different models of managed services?
MSPs offer eDiscovery services through a range of delivery models to meet varying business needs:
– **Staff augmentation** – Providing contract personnel resources to supplement in-house teams on an as-needed basis.
– **Project-based outsourcing** – Handling specific eDiscovery projects from end-to-end with dedicated resources.
– **Process outsourcing** – Managing ongoing eDiscovery processes such as collections, data processing, or review as an outsourced solution.
– **Comprehensive outsourcing** – End-to-end managed services for the full spectrum of eDiscovery needs on a retainered or on-demand basis.
– **On-site management** – Stationing MSP personnel at a client site to manage workflows, technologies, and processes directly.
– **Hybrid approaches** – Blending internal resources with external support for only certain eDiscovery tasks.
The optimal model depends on cost considerations, risk appetite, headcount constraints, and degree of control desired. MSPs work closely with organizations to tailor the right approach.
How does eDiscovery managed services pricing work?
MSPs offer flexible pricing models for eDiscovery services:
– **User-based subscriptions** – Per-seat monthly fees based on number of reviewers or total employee count. Scales up and down easily.
– **Data-based pricing** – Fees tied directly to data volumes ingested and processed. Changes dynamically with each matter.
– **Project pricing** – Fixed-fee or hourly rates for entire projects or specific tasks like collections and processing.
– **Managed review pricing** – Per-document rates for review based on number of docs assessed by managed review team.
– **Hosting subscriptions** – Monthly fees for data hosting and storage, often tiered by volume.
– **Consulting day rates** – Hourly or daily rates for expert services around information governance, readiness, and project consulting.
To align with business needs, pricing often combines several models to cover different services. The goal is predictable spending tailored to actual eDiscovery usage.
What questions should you ask prospective managed services providers?
Selecting the right eDiscovery managed services partner is critical. Key questions to ask prospective providers include:
– What is your experience in my industry and region? Expertise in your business sector and geographic location is crucial.
– What technologies do you utilize for eDiscovery? Assess their software, analytics, review tools, and security measures.
– How flexible are your services and staffing? Look for ability to scale up and down to meet demands.
– What is your data center infrastructure like? Evaluate hosting facilities and security capabilities.
– How do you ensure eDiscovery defensibility? Review their protocols, quality controls, and documentation standards.
– What qualifications does your review staff have? Look for certified, experienced review attorneys and paralegals.
– Can you provide customer references? Ask for references to evaluate service quality and client satisfaction.
– What reporting and metrics can you provide? Require robust visibility into spending, service levels, and productivity.
– How do you guarantee security and data privacy? Review their security policies, access controls, employee vetting, and certifications.
– What is your experience with my type of data? Assess experience with structured vs. unstructured data, mobile, social media, cloud apps, etc.
– How flexible are your contract terms? Seek month-to-month terms or ability to ramp up and down on demand.
What steps are involved in implementing managed services?
Onboarding with an MSP involves several phases:
**Planning and scoping** – The MSP evaluates the organization’s needs, data landscape, and objectives. This shapes an eDiscovery program tailored to meet specific requirements.
**Process development** – The provider designs efficient, defensible eDiscovery processes and workflows to support the program. This accounts for legal, regulatory, and operational factors.
**Contracting** – Both parties formalize the agreement detailing services, pricing, metrics, quality controls, security protocols, and other terms and conditions.
**Deployment** – The MSP provisions infrastructure, technologies, and resources to launch services based on the statement of work. Account management and customer support models are implemented.
**Information transfer** – The client shares data maps, policies, legal holds, and other information integral for the MSP to manage ongoing eDiscovery activities. Access and credentials are established.
**Training** – End user training on processes, tools, and the MSP relationship helps streamline adoption. Technical integrations and connections may be required to enable services.
**Ongoing governance** – The MSP provides regular reports, business reviews, budgeting, and planning. Their services adapt dynamically to changing requirements.
What are important factors when selecting a managed services provider?
Organizations should thoroughly vet MSPs using the following selection criteria:
– **Technical expertise** – Sophisticated software, analytics, workflows, and infrastructure tailored specifically for eDiscovery.
– **Service breadth** – End-to-end services covering the entire EDRM from identification through production. Incremental services and consulting are ideal.
– **Industry experience** – Possess substantial experience in your specific industry and regulatory environment.
– **Processing capabilities** – Ability to efficiently process high data volumes in any format while maintaining integrity.
– **Data security** – Robust data protections, access controls, and security certifications like ISO 27001 and SSAE 18 SOC 2.
– **Global footprint** – Infrastructure, resources, and language support to meet cross-border eDiscovery obligations.
– **Flexible pricing** – Pricing aligns to usage and offers predictable budgeting without overages.
– **Scalability** – Proven ability to dynamically scale up and down as your needs change.
– **Customer support** – Robust training, change management, and consistent support throughout the relationship.
– **Reporting and metrics** – Actionable insights into service levels, productivity, budgets, and ROI.
– **Defensibility** – Uses legally defensible workflows, qualified staff, and proper tooling for chain of custody.
What steps can you take to optimize your partnership with an MSP?
Organizations should take a proactive approach to optimize their MSP relationship:
– Provide comprehensive employee training on the MSP, their services, protocols for engaging them, and contact channels. Update training regularly.
– Designate internal personnel to serve as the primary liaisons managing the relationship day-to-day. Streamline communications through them.
– Conduct periodic business reviews to discuss service levels, issues, roadmap, and satisfaction. Adjust course as required.
– Share changes to internal infrastructure, personnel, business events, or legal/compliance needs that may impact services.
– Provide comprehensive data maps cataloging systems and repositories to be managed. Update as environments evolve.
– Familiarize the MSP with corporate records management policies and retention schedules.
– Involve the MSP in IT planning discussions relevant to eDiscovery like migrations, new system rollouts, or application sunsetting.
– Provide access to required systems and data repositories for collections and processing based on the MSP’s requirements.
– Collaborate on developing eDiscovery response plans for various scenarios like litigation or investigations. Test plans via fire drills.
– Require proper security vetting, training, and oversight of any MSP personnel working on-site to align with corporate policies.
Conclusion
Managed services offer organizations a flexible, scalable model for eDiscovery that improves efficiency, reduces costs and risk, and provides access to specialized technologies and expertise. By leveraging and governing MSPs as extensions of internal teams, legal departments can significantly enhance their eDiscovery capabilities and focus more on strategic objectives. Organizations should conduct in-depth evaluations of MSPs and take steps to develop a tightly aligned partnership focused on their specific requirements and obligations. With rigorous oversight and collaboration, managed services can pay dividends by strengthening eDiscovery performance, compliance, and defensibility.