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Courtney Writes Getting Real Value from your E-Discovery Provider Dear Courtney, Some electronic discovery service providers seem to be more expensive than others. I've seen bidding wars in some projects recently. Can you shed some light on the different pricing options out there these days? D. Murphy Washington, D.C. Dear Ms. Murphy, The issue of pricing for electronic discovery can be a confusing and somewhat sensitive subject, particularly when you have a cost-conscious client that may not fully understand electronic discovery services. There are really two issues here that you and your clients should think about: 1) the cost of electronic discovery services compared to alternative methods of document review and 2) the complete list of services included in per-page or per-gigabyte charges from various service providers. Costs Compared to Other Methods of Review While many attorneys now have some electronic discovery experience, most law firm clients are still unfamiliar with the difference between outmoded methods of document review and true electronic discovery technology. Prior to the development of true electronic discovery technology, lawyers had two options for reviewing clients' documents for production: manual paper review, or review of scanned and coded images stored in a desktop litigation support database. In fact, many people still think of electronic discovery in terms of the litigation support databases they have worked with in the past. These applications require investment in software seat licenses, extensive training, and sometimes the purchase of additional hardware. The law firm houses the data, and its IT staff provides support. This infrastructure adds up to a significant investment. Volume-based costs of printing and copying pages from clients' computers, then scanning and coding the documents for upload to the database are additional expenditures. True electronic discovery services are different: pricing is volume-based, on a per-page or per-gigabyte basis. There is no up-front technical investment. You don't need to purchase additional hardware-each member of the review team needs only a web-connected PC to review documents online. You do not buy any software. Per-page costs include all training and support, preserving the resources of your firm's IT department. Training time is minimal—usually less than an hour—for anyone who is familiar with use of the Internet. True electronic discovery is strictly volume-based. The cost of electronic discovery services for your case relates directly to the volume of documents. This means that the benefits of e-discovery technology are scalable for different sized projects. Services Included in Volume-Based Pricing Without an "apples to apples" comparison of the services offered by electronic discovery service providers, it is difficult to prepare a cost comparison of the different electronic discovery options. Most attorneys want to see an uncomplicated checklist or comparison chart, but an understanding of up-front pricing differences and long-term project costs requires more thought. Cost is an important component of quality, but the up-front project bid shouldn't be your only consideration when choosing an electronic discovery service provider. Low-ball bids have a way of coming back to haunt you, with unexpected add-on charges, missed deadlines, and unmet expectations. In many cases, low cost also means low value. Value means the best technology, the most functionality, the highest levels of security, and standard-setting client service—all at a fair price.
Many service providers offer a low per-page or per-gigabyte fee for simply processing electronic files in discovery, but bury other charges in the proposal. Others neglect to conduct up-front project planning meetings to describe the wide array of possibilities for managing the data as the case progresses. Without this advance information, the review team frequently ends up paying more than originally estimated. With careful planning and a good dialogue with your service provider, there should be no surprises and your legal team will benefit from the most desirable result of all—the best products and services at a competitive price—real value. |
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