E-Discovery – Outsourcing vs. In-House
Just as the process of e-discovery is complex and complicated, so is the task of making the right choice between moving the process in-house or outsourcing. A decision should not be made without a clear understanding of the pros and cons of both approaches since the wrong move can put a company’s reputation in jeopardy.
E-discovery is a process requiring precision and attention to detail, and companies can be fined if the electronically stored information is not processed accurately. With the fate of several high profile e discovery cases serving as an eye-opener, enterprises and organizations cannot adopt a complacent attitude when it comes to e-discovery. Hence, instead of rushing into a decision, it is very important to get to know the ins and outs of going in-house and outsourcing.
E-Discovery Outsourcing
The practice of depending upon outside agencies for a company’s e-discovery needs is known as e-discovery outsourcing. Outsourcing of the e-discovery process is favored by some enterprises and organizations as the volume of litigation and the amount of electronically stored information are increasing at an alarming rate. One contributing factor that makes the e-discovery process cumbersome for some enterprises and organizations is the percentage of litigation that c are bogus, frivolous and filed not with the intention of receiving any form of damage, but to tarnish the image. It is a form of business strategy in which litigation is used as a pretext to put pressure on partners and rivals. Additionally, many companies struggle to keep up with the many electronic data formats that have made the e-discovery process more complicated, which can add complication to the challenge presented by the continuing proliferation of electronically stored information. While the in-house value proposition has proven to save tremendous amounts of money enterprises and law firms, some enterprises and law firms find that outsourcing the e-discovery process can save time and, in some instances, cost. Typically, enterprise and law firms with small volumes of litigation that occur at irregular intervals are more likely to find outsourcing to be cost-effective whereas enterprises and law firms with large volumes of data and/or regular litigation, investigations, or regulatory inquiries find in-house e-discovery to be most cost-effective.
Benefits of Outsourcing
· Well-Trained and Focused Team
·Enterprises and law firms are able to work with a well-trained and well-experienced team with in-depth knowledge regarding technological aspects as well as e-discovery laws.
· Focus on Core Objectives
·By outsourcing their e-discovery requirements, companies have ample time to focus on their core objectives instead.
· On-Schedule Delivery
·Professional firms of impeccable reputation should be able to complete the e-discovery process on time.
· Risk Mitigation
·When attorneys and forensic investigators with little knowledge about the e-discovery process collaborate with an IT team that is also unfamiliar with e-discovery laws, differences are bound to occur and inevitably affect the quality of the project. This risk can be minimized by outsourcing the e-discovery process.
· Short term cost savings
·Companies need not invest in any hardware or software, so there are no set up or operating costs.
In-House E-Discovery
The practice of setting up a separate team within an enterprise or organization to take care of e-discovery needs is referred to as in-house e-discovery. By bringing e-discovery in-house, companies have greater control of their electronic data, which helps them build more robust cases in their defense.
Benefits of Moving in-House
· Greater Security
·By moving in-house, enterprises and organizations can minimize the risks involved in depending on outside agencies for processing privileged data.
· Cost-Effective
·E-discovery is a fact of the corporate life, so investing in ediscovery solutions is a worthwhile endeavor. Moreover, bringing the process in-house would be a one-time investment compared to the ongoing payments made to outside agencies each time the need arises.
· Greater Visibility
·By bringing the e-discovery process in-house, enterprises get greater visibility as to whether the project is on the right track. This prevents enterprises and organizations from making a poor showing before the judges.
Since outsourcing and in-house e-discovery have their own advantages and disadvantages, it is up to the enterprise to choose the one that is best for their needs.