Post Process

Everything to do with E-discovery & ESI

Boom and Bust

Posted by rjbiii on August 17, 2009

According to Michelle Lange, writing in the ABA Journal, we’ve seen an E-Discovery boom…are we now facing a bust? According to the article:

But growth has slowed sharply from annual rates of more than 40 percent just a few years ago, according to Socha’s surveys. And it’s getting much harder to compete profitably in an industry that is coming of age during the worst economic downturn in decades. For one thing, clients no longer are willing to write open-ended checks for services that easily can exceed $1.75 million for an average case.
“Growth has started to moderate and margins have started to decrease,” says Nick Baughan of investment banking firm Marks Baughan & Co. in Cornshohocken, Pa., which advised such deals as
Applied Discovery’s sale to LexisNexis.

One interesting quote is:

“It was almost like a gold rush,” says John Bace, research vice president of Gartner Inc. in Stamford, Conn. “People saw e-discovery as a quick and easy way to make money.”

All I can say to that is that it has been possible to make good money in the industry…but at least for me, it has never been easy.

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