Law firm consulting sector growing in India

Ajay Kumar tracks the growing trend of firms recruiting consulting consulting companies to provide them with advice relating to firm management, brand management, processes and systems, human resource and the like..Last month, DuPont’s Dan Mahoney joined Edge International (Edge), a multinational consulting company providing law firm management and consulting advice on several issues concerning modern law firm management, ranked internationally amongst the top three. Dan was responsible for DuPont’s award winning law firm partnering program, which featured the innovative supply chain management model adopted by law firms worldwide. Dan’s innovative Value Pricing Model is tipped to be the next billing arrangement model for law firms worldwide. This model is being extended to law firms in India as well..Edge was set up in India by India Partner, Juhi Garg in 2008, a time when law firm consulting, as a known and recognized concept was non-existent here. Juhi feels that apart from just a couple of top-notch firms in the country, most were even unaware about law firm consulting companies..This latest move by Edge comes on the wake of the spurt in the growth of India’s legal sector. The growing size of Indian law firms and the imminent entry of foreign firms into the country are driving consulting companies in India to expand their business models to include services tailor made for Indian Firms. Most Indian firms, who are either family owned or partnerships, are open to the idea of third-party consultants advising them on the ‘corporatization’ of law firms. Amarchand, India’s biggest law firm by numbers, had hired BCG consulting to advise the family firm on the next steps in identifying growth areas, brand change and structure..The consulting companies also advise law firms on their management, strategy, growth, expansion & development, training of lawyers, brand building, processes and systems, market perception studies, client assessments, domestic mergers & acquisitions, partner compensation, retreat and offsite sessions, billing systems and a host of other issues..These consulting companies are also advising international law firms on their India strategy. A consultant based in Singapore, advising both Indian companies and foreign law firms based in Singapore and do India related work, told Bar & Bench, “Foreign law firms are clueless about India to some extent. All of them are treating India as a place to have an address, but are really unaware of their strategy and year-on-year growth. Most foreign law firms only comment that their vision for India is long term and not short. But apart from that have no specific India plans. This is where a consultant company is helpful. We help them assess their own assumptions and objective guide them towards their strengths.”.In the west, firms like Altman Weil, are large consulting firms who advise on firm strategy, merger and acquisitions, administration and a host of other legal management issues. Last couple of years have seen several mergers and splits within the Indian law firms. AZB & Partners initially merged with Vivek Chandy and Murali Ananthasivan to set up the Bangalore practice. Later, Murali and Chandy split from AZB to set up M&C Partners which later merged with J. Sagar Associates. Instances like these have given way to consulting companies who advise purely on law firm management. One Partner, on conditions of anonymity, told Bar & Bench, “There are consulting companies providing independent advice for telecom, retail infrastructure and a host of other verticals for Indian companies. Now the time has come for law firms to seek advice from independent third parties. Also, there may be issues concerning the growth of law firm, new sectors and territories that the partnership has to expand which may not be amicably resolved amongst partners and may need the Consulting companies advice.”.Juhi Garg believes that sophistication is the need of the hour. “There is obvious potential in the Indian market. It’s a ripple effect, the India story gave birth to mega deals, domestic and cross border and so the exponential growth of the Indian corporate law firms. Witnessing such massive scales, firms need to re- consider their ways of strategizing, set up and management. They can no longer run like a sole proprietorship and need to apply to them suitable and tailor made corporate methods of operation & strategy for smooth processes which would enable further growth and expansion. Sophistication is the call of the hour and with increased competition in the law firm market, ignoring strategy, systems and innovation can prove to be degenerating. Beyond a point law firms themselves would realize the need to institutionalize for sustenance and growth,” she says..Rainmaker, another consulting and human resource firm has been making headways in the consulting space after it set up a separate law firm consulting vertical late last year. Rainmaker tied up with former Chief Operations Officer of Amarchand Mangaldas, Bithika Anand, to set up Rainmaker Consulting. Rainmaker is currently consulting for Amarchand Mangaldas and Nishith Desai Associates. Nikhil Chandra, Chief Executive Officer of Rainmaker speaking at a conference had said, “The next phase of evolution for the law firm sector will focus inwards on issues such as service lines (practice areas), training systems, technology, clear communication about career growth and progression etc.”.This field has also stirred the interest of law students. Edge India said that it receives requests on a regular basis from top law school students for internships and placements, with National Law University applications being in majority. It appears that in the coming years, the focus of law firms will shift from growth to internal and external consolidation which spells good news for these consulting firms. DuPont’s Dan Mahoney joining Edge International perhaps, is just the first step of things to come..Ajay Kumar is a student of law at the School of Law, Christ University, Bangalore, and is currently in his III year.