Empowering Small Firms: Navigating the Changing Legal Landscape with Auxilio
Article by Auxilio’s Knowledge Services Specialist Mark West
The UK legal sector has demonstrated robust growth, surging by over 8% in 2023 and contributing an estimated £60 billion annually to the nation's economy (Law Society). However, amidst this prosperity, there's a notable shift in dynamics. While the number of registered solicitors on the roll steadily rose from 2018 to June 2023, peaking at just over 223,000, recent data from February 2024 (SRA) reveals a decline, with numbers dipping to slightly over 204,000. Coupled with post-Brexit labour market constraints, this decline has heightened recruitment challenges and escalated salary costs for many firms.
As of December 2023, the estimated number of firms has decreased to 9,300 (UK Legal Services Market Report) marking a decline of over a thousand firms compared to the same period five years earlier. This downward trend is most pronounced amongst small and medium sized law firms, emphasising the critical need for adaptation.
"In the face of challenges such as increased operating costs due to the energy crisis and a shortage of talent, small firms are refining their strategies to deliver greater value and affordability for clients," notes Mark West, Knowledge Services Specialist at Auxilio. "Rather than viewing these obstacles as roadblocks, it's inspiring to see firms embracing current conditions to deepen their understanding of client needs and tailor services accordingly."
This sentiment aligns with Auxilio's mission, as we partner with high street and SME law firms to foster innovation and support service delivery. By exploring innovative packaging and design options, firms can enhance efficiency and adaptability while maintaining a client-centric approach.
"Beyond outsourcing, we encourage firms to embrace creative pricing models and transparent cost structures," adds Mark. "Effective service design is key, ensuring each step adds tangible value for clients and distinguishing core services from flexible add-ons."
Moreover, optimising digital channels and exploring automation opportunities can further enhance the client experience, offering convenience without compromising quality.
As a trusted partner in the industry, Auxilio remains dedicated to delivering excellence in outsourced legal and knowledge services. For more information on how Auxilio can assist, please contact Business Development Director Adil Hamid or Knowledge Services Specialist Mark West at info@auxiliouk.com or call 02070319905.
