Profit is a simple concept to understand –the amount of revenue received by a business in excess of its total costs/expenses. For law firms, an important measure of their profitability is the profit per equity partner, otherwise known as PEP.
Magic Circle results
The UK’s largest law firms have been announcing their financial results for 2022/23 in the last month, and the numbers suggest everyone has struggled with inflation and rising costs this year as the rise in PEP across the board was muted.
One way to solve the profit puzzle in the year ahead is to reduce costs.
However, as any service provider knows, this cannot be at the expense of quality of service; to become more profitable, it’s important to cut the right costs in the right way – otherwise you risk reducing revenue by leaving clients dissatisfied and driving them away.
London law firms have two particularly significant costs to bear – office space and salaries. The war for talent in the last 12 months has seen a significant rise in salaries for lawyers and others, costing their employers more and ultimately reducing the amount of profit they see but there are other substantial costs, and it’s not just legal service providers in London who are feeling the pinch.
Cost savings are possible
At Global BPO, we see our client law firms, both in London and beyond, make a considerable reduction in their costs when they partner with us for services ranging from document review (due diligence and eDiscovery) to document production and conveyancing and regulatory work.
Through partnering with Global BPO, our clients benefit from a whole range of efficiencies, including:
· a significant reduction in the cost of salary
· No employer national insurance contributions to pay
· No pension contributions to make
· No costs for office space
· No training costs
· No HR or IT costs
· No day-to-day personnel management, allowing managers to get on with their day jobs
These reduced costs all add up to one thing: increased profit for our law firm clients! So why not talk to us to find our more?
How can we help you?
For more information and to find out how we could assist your law firm to reduce its costs and improve its profits, contact our Client Manager, Suzie Young, at: firstname.lastname@example.org.