Page 11 - 1 Disruption and Opportunties - Law and Accounting rd
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Professional Services Disruption
(C) Accounting Networks and Associations
The market forces creating disruption in the legal profession34 are simultaneously creating opportunities in
the accounting profession.
When the Big Four expands to
legal services, it shifts the
referral pattern from the Big
Four to other accounting firms
which are not competitors of
law firms.
The history of accounting
networks and associations was
different from legal networks.
While they were created for
similar reasons as law firm
networks, i.e. to provide an
alternative, the difference was
that their consolidation began
much earlier. As a result they used the same network model, unlike Biglaw which used the firm model.
The competition is and always has been head-on, since a continuous consolidation has taken place over
decades.36 The market has become complacent given the very large difference between the Big Four and the
networks/associations.
As only a limited number of accounting firms can be network members, this has pushed the continuing need
for the development of new networks.37 However, there may be an effective limit on the number that can be
created. This has raised two questions: Can the association/network members sustain this new competition
for the best clients? Can any network or association by itself compete with the Big Four?
What opens the Big Four to a challenge by other networks and associations is technology. It can change the
equilibrium without the investment level required to create the Big Four.
(D) Alternative Legal Services Providers (ALSPs)
New players emerged much later with legal process outsourcing (LPO) services.39 To a large extent, they were
document management services. This has given way to new groups of services renamed “alternative legal
34 John Gould & Michael Stacey, Are Accountants Disrupting the Legal Services Market? ECONOMIA (Jan. 14, 2016),
http://economia.icaew.com/opinion/january-2016/are-accountants-disrupting-the-legal-services-market.
36 Big Four Accounting Firms, WIKIPEDIA, https://en.wikipedia.org/wiki/Big_Four_accounting_firms.
37 Charles W. Wootton, Carel M. Wolk, & Carol Normand, An Historical Perspective on Mergers and Acquisitions by Major US Accounting Firms, SAGE
JOURNALS (May 1, 2003), http://journals.sagepub.com/doi/10.1177/103237320300800103.
39 Legal Process Outsourcing, WIKIPEDIA, https://en.wikipedia.org/wiki/Legal_outsourcing.
8
(C) Accounting Networks and Associations
The market forces creating disruption in the legal profession34 are simultaneously creating opportunities in
the accounting profession.
When the Big Four expands to
legal services, it shifts the
referral pattern from the Big
Four to other accounting firms
which are not competitors of
law firms.
The history of accounting
networks and associations was
different from legal networks.
While they were created for
similar reasons as law firm
networks, i.e. to provide an
alternative, the difference was
that their consolidation began
much earlier. As a result they used the same network model, unlike Biglaw which used the firm model.
The competition is and always has been head-on, since a continuous consolidation has taken place over
decades.36 The market has become complacent given the very large difference between the Big Four and the
networks/associations.
As only a limited number of accounting firms can be network members, this has pushed the continuing need
for the development of new networks.37 However, there may be an effective limit on the number that can be
created. This has raised two questions: Can the association/network members sustain this new competition
for the best clients? Can any network or association by itself compete with the Big Four?
What opens the Big Four to a challenge by other networks and associations is technology. It can change the
equilibrium without the investment level required to create the Big Four.
(D) Alternative Legal Services Providers (ALSPs)
New players emerged much later with legal process outsourcing (LPO) services.39 To a large extent, they were
document management services. This has given way to new groups of services renamed “alternative legal
34 John Gould & Michael Stacey, Are Accountants Disrupting the Legal Services Market? ECONOMIA (Jan. 14, 2016),
http://economia.icaew.com/opinion/january-2016/are-accountants-disrupting-the-legal-services-market.
36 Big Four Accounting Firms, WIKIPEDIA, https://en.wikipedia.org/wiki/Big_Four_accounting_firms.
37 Charles W. Wootton, Carel M. Wolk, & Carol Normand, An Historical Perspective on Mergers and Acquisitions by Major US Accounting Firms, SAGE
JOURNALS (May 1, 2003), http://journals.sagepub.com/doi/10.1177/103237320300800103.
39 Legal Process Outsourcing, WIKIPEDIA, https://en.wikipedia.org/wiki/Legal_outsourcing.
8
