ALB Insights March 21, 2017 |
| | | More than the IT guy: Law firms begin to embrace CTOs
As technology continues to revolutionise the legal landscape, law firms are beginning to realise that they need to better harness technology in order to remain competitive. To this end, chief technology officers (CTOs) are becoming increasingly in vogue, finds Raj Gunashekar.
Long regarded as one of the last stodgy holdouts against innovation in general and technology in particular, the legal industry is waking up to the fact that if it does not embrace technology now, it is likely to be left behind.
To achieve this, law firms are increasingly bringing in dedicated technology specialists to oversee their transformation as well as gain a competitive edge. Although internal organisational structures vary from firm to firm, most sizeable firms have someone in charge of setting information technology strategies and overseeing day-to-day operations.
The reasons for this are manifold, explains Patrick O'Reilly, IT client services director for APAC at Clifford Chance. “Collaborating with clients needs to be easy. To achieve this, someone needs to be worried about the future roadmap for technology and how it can be used to achieve the firm's strategy as it evolves.”
Additionally, clients are demanding more from law firms with regard to data security, which has become one of the biggest priorities in the sector. A firm is at risk if it doesn't have someone focused on this key area and delivering security solutions that meet clients’ requirements.
Clients also expect law firms to drive efficiencies through adoption of new technologies such as artificial intelligence, which cause lower value tasks to be automated, thus driving down costs.
While specific roles vary, firms are beginning to trust internal advisors to help navigate the range of technologies at their disposal – along with the challenges they bring.
“You need an owner for your technology roadmap,” says O’Reilly. “This could be a CTO, a CIO, global head of architect or a global head of infrastructure. Everything depends on the size of the firm, its global reach and its level of IT sophistication. A small local firm wouldn't typically have a CTO role, so this might fall to the IT manager. It really depends on your client base and what they are demanding.”
AN EVOLVING ROLE
The role of a CTO revolves around gathering feedback from the business around pain points to ensure that any future technological changes can be used to address those issues.
In addition, CTOs are expected to communicate the IT roadmap to the business in terms of short-, medium- and long-term strategies to gain buy-in. They also invest in technology, strive to understand the impact of technology change on the business, and align training materials and resources to support these.
As O’Reilly points out, “They are also involved in understanding the impact of technology change on business processes and on the day-to-day support teams and what is needed to increase the skills and knowledge of various teams. They evaluate newer technologies and how they might benefit the firm in the long run.”
Moreover, every law firm is now being challenged by the rapid emergence of different forms of cyber risks, and this only bolsters the need for a technology officer. “Protecting the data of our clients and our firm is a top priority, and we have a strong information risk management system in place for this purpose,” says Andrew Stoutley, administrative director at Thailand-headquartered Tilleke & Gibbins.
That said, CTOs at law firms cannot work in isolation. It wouldn’t be effective to have an IT team implementing technology solutions that don’t meet the needs of lawyers and – even more importantly – the needs of clients.
“It’s our lawyers who work closely with our clients, listening to their requirements and learning about their businesses. Therefore, it's essential for our IT group to work closely with the firm’s lawyers on tech activities,” adds Stoutley.
To contact the writer, please email [email protected]. |
| | DLA Piper co-CEO: ‘Compared to other global law firms, we're competing incredibly well’
Simon Levine, DLA Piper’s global co-CEO, speaks to John Kang about the firm’s Asia offerings, why China is an integral part of the regional strategy, and what sets it apart from the competition.
What have been some of the recent highlights from your Asia offices?
The number one highlight for me is the fact that we won the dragon boat race (the Law Society of Hong Kong’s Legal Professional Cup) this year for the fourth time out of the five years we entered. I'm in absolute awe of the fact that we keep entering – and keep winning.
I believe it's a good example of how we are a collaborative bunch of people working in a team because there's absolutely no doubt you're going to win that race unless you work as a team. I’m pretty proud of them doing that.
We are really making good progress in Greater China. If you look at the sort of growth we've had and the number of people and revenue – not just in Hong Kong, but Beijing and Shanghai – 10 years ago, we weren’t really anywhere in China. But today, we are known and recognised for that market.
Where does Asia fit into DLA Piper’s global strategy? And what part of the region is most important for your firm?
Asia has a pivotal connection with Europe and America, and if you want to be a global business law firm, then being in Asia and having a strong presence there is critical to everything you're going to do.
Obviously, we’re in the service industry and we particularly want to be in key countries so we can be where our clients are. So if you follow that logic, you're going to be in the places where clients are doing business that are also economically and politically important. China is very central to that, and Hong Kong has always been very central because of its historical background. But more recently, if you add these into the whole Greater China picture, then they are very essential.
How would you say DLA Piper compares with other global law firms in Asia?
Compared to other global law firms, I think we're competing incredibly well. Although some have been there longer than us, a lot are very focused on corporate finance. But a lot of our work is broadly commercial-based in various sectors, so we can give advice on across a range of practice areas whether that’s corporate finance, intellectual property, real estate. It’s something that gives us an edge.
I think we compete really well with our competitors primarily because there are very few firms that can give that range of expertise across sectors and jurisdictions. How many law firms can you name that not just has significant presence in all those offices, but can also offer expert advice throughout Europe, North America, Latin America, Africa, as well as the Asia Pacific? That global coverage is really critical to a lot of our clients, as is the broad range of expertise across sectors. I think we're in a pretty unique position to compete really well.
To contact the writer, please email [email protected]. |
| | Opinion: Hong Kong's money-laundering fight is a fig leaf
Hong Kong's anti-money laundering regime, the Financial Services and Treasury Bureau (FSTB), is seeking to introduce legislation that will require the roughly 1.3 million private companies in the territory to disclose their true owners. Lisa Jucca of Reuters Breakingviews says that these are just baby steps.
Hong Kong is under pressure to step up the fight against money laundering. The city is considering forcing private firms to disclose their true owners. That would shed light on a lucrative web of shell companies. The proposed reforms may be just enough to avoid international censure - and steer clear of embarrassing Beijing.
The Panama Papers leaked last year exposed Hong Kong as a major manufacturer of offshore structures that companies can abuse to hide assets and evade taxes. Finding ways to track the beneficial owners of opaque corporate vehicles is also a G20 priority.
In reaction, Hong Kong is looking to demand its 1.3 million unlisted companies to keep a register of their effective owners and make it available upon request. This might ensure Hong Kong ticks all the boxes in time for a review expected next year by the Financial Action Task Force, a global anti-money laundering body with the power to blacklist jurisdictions.
Hong Kong appears to be aiming to meet the letter not the spirit of the global crackdown. For example, it would not grant free and easy access to the new set of data, as Britain does. This will maintain a high barrier for investors or journalists seeking information or trying to hunt down malfeasance.
Local players, concerned about rising costs and privacy, argue only law enforcers need to access this information. Also, at up to HK$25,000 ($3,220), sanctions for failing to record the beneficial owners or responding to a request for information seem mild.
Hong Kong's proposed rules for more disclosure may also be just enough to help Beijing in its own war against corruption and its attempt to stem the illicit transfer of money abroad without upsetting the country's leaders.
A record $725 billion flew out of China last year. The Panama Papers, which covered an earlier period, showed relatives of powerful mainland officials linked to some shell companies. That suggests there are big vested interests in maintaining the status quo – and allowing Hong Kong to take baby steps on the road to financial transparency. |
| | ALB Hot Startups: Lawyered.in
ALB Hot Startups is a weekly series that looks at the most promising new legal tech companies in Asia. This week, we spotlight India’s Lawyered.in, which intends to change the way people interact with and within the legal industry. By Raj Gunashekar
Firm name: Lawyered.in
Year of founding: 2015
Location: Headquartered in New Delhi, India
Founders: Shashank Tiwari, Gauri Bedekar, Raghav Shekhar and Lakshya Kamboj
What they do: Lawyered.in helps people find and book free consultations with verified startup and corporate lawyers across major Indian cities. It also helps laypeople better understand legal terms and concepts through content and social media.
Capital raised till date: So far, the startup has been bootstrapped.
Key law firms it works with: Indus Law, Lakshmikumaran & Sridharan, Krishna & Saurastri Associates and Tryksha Legal
How the idea came about: When Tiwari was working on a business idea, he found out that startups have difficulties with the legal aspect. Realising how the Indian legal market was still disorganised and how finding a good lawyer was a time-consuming – and occasionally difficult – task, Tiwari, along with his co-founders, decided to create a platform through which people can consult and hire verified lawyers in an accessible and affordable way.
Today, the website has an in-depth lawyer verification process and helps clients book an introductory meeting for free.
The journey so far: Ever since the website went live in early 2016, Lawyered.in has helped over 500 startups get legal assistance. It partners with several major corporate law firms in India.
“We receive requests from more than 500 individuals and businesses that are looking for answers for their legal problems,” one of the founders says. “Going forward, we aim to introduce technology for both clients and lawyers to have a hassle-free legal experience.”
What clients say: "I was connected with a lawyer who had experience with food tech startups. Such level of personalisation for legal issues is great for startups.” – Anmol Batra, founder, NomNom
To contact the writer, please email [email protected]. |
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