Page 12 - Lawyers and Accountants - The Future of the Professions
P. 12
Lawyers and Accountants 2019 -
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.
Global Accounting, Audit and Big Four Market 2018
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
services providers.” The range of services has greatly expanded. At first, the charge was led by independent
companies, but now those services are being provided by the Big Four.40 This expands the Big Four from audit
and accounting to legal services and management services.
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.
40 Neil Rose, Growth of Alternative Providers – Especially Big 4 – Could Push Law Firms into ‘Contractor’ Role, LEGAL FUTUREs (Feb. 1, 2017),
https://www.legalfutures.co.uk/latest-news/growth-alternative-providers-especially-big-4-push-law-firms-contractor-role; David Curle, Alternative
Legal Service Providers: Changing Buyer Perception, THOMSON REUTERS LEGAL (May 2, 2017),
https://blogs.thomsonreuters.com/answerson/alternative-legal-service-providers-buyer-perception/; Mark A. Cohen, Legal Delivery at the Speed of
Business -- and Why It Matters, FORBES (June 25, 2018), https://www.forbes.com/sites/markcohen1/2018/06/25/legal-delivery-at-the-speed-of-
business-and-why-it-matters/.
9
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.
Global Accounting, Audit and Big Four Market 2018
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
services providers.” The range of services has greatly expanded. At first, the charge was led by independent
companies, but now those services are being provided by the Big Four.40 This expands the Big Four from audit
and accounting to legal services and management services.
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.
40 Neil Rose, Growth of Alternative Providers – Especially Big 4 – Could Push Law Firms into ‘Contractor’ Role, LEGAL FUTUREs (Feb. 1, 2017),
https://www.legalfutures.co.uk/latest-news/growth-alternative-providers-especially-big-4-push-law-firms-contractor-role; David Curle, Alternative
Legal Service Providers: Changing Buyer Perception, THOMSON REUTERS LEGAL (May 2, 2017),
https://blogs.thomsonreuters.com/answerson/alternative-legal-service-providers-buyer-perception/; Mark A. Cohen, Legal Delivery at the Speed of
Business -- and Why It Matters, FORBES (June 25, 2018), https://www.forbes.com/sites/markcohen1/2018/06/25/legal-delivery-at-the-speed-of-
business-and-why-it-matters/.
9
