Editor’s Note: ComplexDiscovery is an online publication that highlights cyber, data, and legal discovery insight and intelligence ranging from original research to aggregated news for use by cybersecurity, information governance, and eDiscovery professionals. The highly targeted publication seeks to increase the collective understanding of readers regarding cyber, data, and legal discovery information and issues and provide an objective resource for considering trends, technologies, and services related to electronically stored information. One key area of coverage by ComplexDiscovery is the business of eDiscovery. Provided in this update are compelling trends and salient observations that may be beneficial in helping develop an understanding of the business of eDiscovery in 2021 with an eye for business in 2022.


Five Trends and Five Observations on the Business of eDiscovery in 2021

Provided as an addendum to the post titled Searching for Alternatives? The State of eDiscovery Business in 2021 (Research), the following trends and observations provide a subjective view of some of the areas that may have influenced eDiscovery business in 2021 and may influence eDiscovery business in 2022.

Five Compelling Trends

  • Movement from asking about Technology-Assisted Review to asking for it. (Acceptance/Requirement)
  • Movement from asking about Artificial Intelligence in general to specifically asking about artificial Intelligence in specific discovery-centric tasks. (Interest/Understanding)
  • Bifurcation of the market between providers that have the ability to insure work (i.e., provide the appropriate insurance coverage) against cyber, geographical, and business risks, and those that do not have the ability to insure work against cyber, geographical, and business risks. (e.g., ransomware, remote locations, and indemnity).
  • Increasing market size and opportunity for eDiscovery-centric revenue with decreasing number of providers able to service the market, take advantage of the opportunity, and extract revenue. (Growing Opportunity/Increasing Consolidation)
  • Opportunistic expansion by providers into information governance and cybersecurity areas without a long-term understanding of how such expansion can impact their business (i.e., opportunist engagement vs. controlled market entry).

Five Research Observations

  • Current business confidence is high in the area of eDiscovery.
  • Revenue and profit expectations for the near future (i.e., six months in the future) are solidly optimistic.
  • Lack of personnel is now the biggest issue impacting eDiscovery business performance.
  • Increasing data types and volumes continue to strongly impact eDiscovery business performance.
  • While monthly recurring revenue is increasing, so are days sales outstanding.

Additional Reading

Source: ComplexDiscovery

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