Page 4 - Big Four Legal - Creating New Opportunities for Law Networks
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Big Four in Legal and Accounting – Threats* and Opportunities*
This paper will demonstrate why this conclusion, at least in the short term, is incorrect at a number of
levels. The principal reason is that Biglaw markets overlap with the Big Four in the same markets that
both have occupied for decades (e.g., London, Paris, Tokyo, Beijing, Mexico City, New York, etc.). Adding
more lawyers to these markets has virtually no effect on the competitive environment in these
locations. The separation within the legal and accounting media means that the Big Four are not yet
recognized as part of the legal profession.4 Formal integration and recognition will require a
considerable amount of time and resources on their part.
What is actually taking place is the redistribution of legal services themselves everywhere else in the
world – except for the United States and major markets. This leaves local indigenous firms to face the
brunt of new competition from the Big Four. These are countries in which the Big Four already have a
large local presence and are local themselves in every sense. In turn, this will affect the law firm
networks whose members are among the largest local firms.
This paper will discuss:
The changing parameters of competition from a global market point of view
New and unexpected competition for the Big Four because of competitors’ local alliances
Significant opportunities being created for independent law firms, networks, and allied ALSPs
Development in technology that may overwhelm the Big Four as it becomes universally available
at low cost
Developments in technology may overwhelm the Big Four as it becomes generally available on the cloud
at a low cost. Networks will themselves become more sophisticated as a result of this technology’s
availability. It will be used to promote the networks. AILFN’s Locate Law Networks (LLN) and Requests
for Qualifications (RFQ) already make network members accessible in minutes by exact expertise
everywhere on earth. It has now been extended to locating independent accounting firms.
As the Big Four enter the legal markets, Biglaw will refer cases to local law firms that are members of
networks, since they are not in competition with one another. Additionally, ALSPs are projected to grow
to $27 billion by 20245 and compete with the Big Four. They can easily be factored into LLN/RFQ.
The legal profession has nothing to fear. The future is indeed bright for both members of law and
accounting networks/associations of independent firms.
4 See discussion at Section III
5 Legal Process Outsourcing (LPO) Market Worth $27.19 Billion By 2024 December 2016 https://www.grandviewresearch.com/press-
release/global-legal-process-outsourcing-lpo-market
2
This paper will demonstrate why this conclusion, at least in the short term, is incorrect at a number of
levels. The principal reason is that Biglaw markets overlap with the Big Four in the same markets that
both have occupied for decades (e.g., London, Paris, Tokyo, Beijing, Mexico City, New York, etc.). Adding
more lawyers to these markets has virtually no effect on the competitive environment in these
locations. The separation within the legal and accounting media means that the Big Four are not yet
recognized as part of the legal profession.4 Formal integration and recognition will require a
considerable amount of time and resources on their part.
What is actually taking place is the redistribution of legal services themselves everywhere else in the
world – except for the United States and major markets. This leaves local indigenous firms to face the
brunt of new competition from the Big Four. These are countries in which the Big Four already have a
large local presence and are local themselves in every sense. In turn, this will affect the law firm
networks whose members are among the largest local firms.
This paper will discuss:
The changing parameters of competition from a global market point of view
New and unexpected competition for the Big Four because of competitors’ local alliances
Significant opportunities being created for independent law firms, networks, and allied ALSPs
Development in technology that may overwhelm the Big Four as it becomes universally available
at low cost
Developments in technology may overwhelm the Big Four as it becomes generally available on the cloud
at a low cost. Networks will themselves become more sophisticated as a result of this technology’s
availability. It will be used to promote the networks. AILFN’s Locate Law Networks (LLN) and Requests
for Qualifications (RFQ) already make network members accessible in minutes by exact expertise
everywhere on earth. It has now been extended to locating independent accounting firms.
As the Big Four enter the legal markets, Biglaw will refer cases to local law firms that are members of
networks, since they are not in competition with one another. Additionally, ALSPs are projected to grow
to $27 billion by 20245 and compete with the Big Four. They can easily be factored into LLN/RFQ.
The legal profession has nothing to fear. The future is indeed bright for both members of law and
accounting networks/associations of independent firms.
4 See discussion at Section III
5 Legal Process Outsourcing (LPO) Market Worth $27.19 Billion By 2024 December 2016 https://www.grandviewresearch.com/press-
release/global-legal-process-outsourcing-lpo-market
2
