Due diligence: law firm outsourcing
Due diligence: law firm outsourcing

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • Due diligence: law firm outsourcing
  • Key terms
  • Consequences of poor due diligence
  • Approaches to due diligence
  • Internal due diligence
  • Due diligence on the supplier(s)
  • Supplier's due diligence
  • Managing issues arising with the due diligence process

Due diligence is the name given to the process through which the factual and legal background to a transaction is collated and assessed. Due diligence should be a two-way process with the supplier assessing your proposed outsourcing project and you assessing the supplier’s ability to provide the services.

Due diligence is one of the key foundations on which the outsourcing deal will be built. From your perspective, due diligence on your supplier is essential. Of equal importance is internal due diligence, ie collating information on your proposed project to structure your request for proposal documentation and realistically assess supplier proposals.

Where only limited due diligence is possible, both you and your proposed supplier should look to address the impact of this in your contract; lack of information at the outset of the deal is likely to increase the possibility of issues arising during the term of the outsourcing agreement.

Key terms

ABS alternative business structure regulated by the SRA—characterised by the involvement of non-lawyer owners and/or managers
firm solicitor practice or ABS
solicitor practice sole practitioner, partnership, LLP or company owned and managed by lawyers
SRA