While artificial intelligence dominates discussions about legal innovation, shared service centres represent a present reality that’s already transforming how law firms operate. Daniel Heymann, a former capital markets lawyer turned legal operations consultant, shares insights into how these centres are reshaping legal service delivery.
The Evolution of Shared Services
“AI is the future of law, but Shared Service Centers are the present,” Heymann emphasises. Top law firms have increasingly embraced this model, with many of the UK’s top 20 firms operating at least one shared service centre. These centres have evolved from handling basic administrative tasks to delivering sophisticated legal services.
How Shared Services Work
The model typically follows a progression:
- Initial focus on back-office functions (HR, marketing, payroll)
- Expansion into paralegal and support work
- Gradual movement up the value chain to include qualified lawyers
- Integration with the firm’s broader service delivery
“The idea is to keep climbing up the value chain,” Heymann explains. “You start with admin sort of stuff… and then slowly they start to prove their value there and people get more comfortable.”
The Competitive Advantage
Shared service centres offer several key benefits:
- Cost efficiency through lower-cost locations
- Process standardisation
- Guaranteed outcomes in quality and timing
- Ability to handle volume work efficiently
This model has enabled some large firms to compete successfully for work typically handled by mid-market firms. “Big law firms have learned how to disaggregate it… We’re going to send all this low value work to our centre and do it for bargain basement costs,” Heymann notes.
Location Considerations
Firms typically choose between:
- Near-shoring (same country, different region)
- Off-shoring (international locations)
Key locations include:
- India (strong English law background, excellent English skills)
- Poland (particularly Krakow)
- UK regional centres (Belfast, Manchester)
The choice often depends on cultural fit and comfort level. “The main driver tends to be culture, what does the law firm feel more comfortable with,” Heymann explains.
Client Communication
Transparency about shared services varies among firms. While some prefer minimal disclosure, Heymann advocates for openness: “I would always encourage law firms to be transparent because I think it is a very important competitive advantage.”
Future Opportunities
Several emerging possibilities exist:
- Multi-firm shared service centres
- Integration with AI and legal tech
- Expansion into new jurisdictions
- Development of specialised expertise centres
Implications for Young Lawyers
For lawyers early in their careers, shared service centres offer unique opportunities. “The future of law is going to pivot more towards the delivery of law and how can we do things better and faster and cheaper,” Heymann notes. “Personality is going to become less important than process.”
Implementation Considerations
For firms considering shared services, Heymann recommends:
- Start with a task taxonomy
- Develop a service catalogue
- Analyse volumes and financial viability
- Consider cultural fit and risk appetite
- Plan for gradual implementation
The Path Forward
“It’s not going to suddenly spring up overnight,” Heymann cautions. However, the track record is compelling: “I haven’t seen any shared service centre contract for the law firms, every single one of them from the top 20 has grown since they’ve started.”
For modern law firms, shared service centres represent more than just cost savings—they’re a strategic tool for delivering consistent, high-quality legal services efficiently. As the legal industry continues to evolve, these centres are likely to play an increasingly important role in how firms operate and compete.
The key to success lies in viewing shared services not as a mere cost-cutting measure, but as part of a broader strategy to improve service delivery and client satisfaction. As Heymann concludes, “The stickiness of the clients will gravitate towards the systems and the processes, rather than the traditional partners.”
