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Trendspotting in Legal Holds, Part 2 – The 2010 Socha-Gelbmann Electronic Discovery Survey

This is the second part of our look at two major reports on the electronic discovery sector that were released within the last month. You can read Part 1 about the Gibson Dunn & Crutcher 2010 Mid-Year Electronic Discovery and Information Law Update that was posted Tuesday. Today we analyze The 2010 Socha-Gelbmann Electronic Discovery Survey that was published at the beginning of August.

The 2010 Socha-Gelbmann Electronic Discovery Survey

Just as the courts are pushing for litigants to do a better job on preservation, one can see the reaction by organizations as they focus more on that area, according the annual Socha-Gelbmann survey as reported in the August issue of LTN.  With the industry until recently allocating its dollars on addressing the technical challenges of managing and processing data (the review stage), there is a distinct “shift to the left” of the Electronic Discovery Reference Model (EDRM).

“Almost without exception, in 2009 consumers and providers focused on the initial steps of the EDD process…. Why? To reduce costs, and better mitigate risks, many respondents explained.”

The survey reports that spending increased year-over-year on e-discovery in 2009 by 10 percent to $2.8 billion.  It is expected to grow by 10-15 percent this year and again in 2011, with more focus on getting better control of information up front as a way to avoid costly problems down the road.

“Perhaps one of the most important ramifications…is the realization that information management no longer is limited to EDD – but is part of a much larger effort that includes compliance, records management, asset management, and numerous other areas within organizations.”

What It Means about Legal Holds

The Socha report seems to focus more on “moving to the left” and the increasing importance of information governance.  Perhaps 2010 will indeed be the year (or the decade?) that organizations truly start investing in improved governance concerning data – what data is being created, where and why it is retained, and how to get rid of it once its useful life as an asset has expired.  If so, keeping better track of where and what data is relevant to discovery can dramatically help prioritize and focus efforts while mitigating risk.  And in the meantime, organizations ought to be taking note that preserving what exists — regardless of format, storage medium or location – requires deliberate and consistent actions when faced with a duty to preserve.

Both reports reinforce a key message we’ve been touting all year – a tool like Legal Hold Pro can dramatically cut costs, save countless hours of time, reduce risk of inadvertent or unintentional spoliation, and create an invaluable knowledge base for investing in better governance across the organization.  It’s okay to start small, especially when the ROI is so high.

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