Thomson Reuters, January 31, 2023: “Alternative legal services providers (ALSPs) now make up a $20.6 billion segment of the legal market and growth is accelerating dramatically, according to the Alternative Legal Services Providers 2023 Report. The report is issued biennially by the Thomson Reuters Institute; the Center on Ethics and the Legal Profession at Georgetown Law; and the Saïd Business School, University of Oxford. ALSPs experienced a compounded annual growth rate (CAGR) of 20% from 2019-2021, a significant jump from the 15% CAGR from 2017-2019. The report states that ALSPs are finding new ways to serve both law firms and corporate legal departments, and the boundaries between all three are becoming increasingly blurred. Independent ALSPs are the largest segment, making up 87% of the ALSP market. While captive ALSPs owned by law firms are the smallest part of the market, they are also the fastest-growing – up nearly six-fold since 2015. ALSP services from the Big Four consulting firms account for $1.5 billion of the market, growing at 5% CAGR. “Both law firms and in-house counsel are increasingly seeing the value of alternative legal services providers,” said James W. Jones, a senior fellow at the Center on Ethics and the Legal Profession at Georgetown Law. “Meanwhile, ALSPs are expanding the services they offer to law firms and legal departments by providing specialized services, improving cost efficiency, and delivering greater flexibility in headcount.”