The hidden costs of legal spend management software
Legal spend management technology generates savings for in-house teams in many ways. We wrote a blog on six of these ways. The most obvious is through cost savings, whether that be through a greater ability to ensure firms adhere to billing guidelines, having visibility of spend, or using data to make future budgeting decisions. Time savings are also generated though the automation of laborious tasks like invoice review and reporting and these can be calculated into monetary amounts.
Using these savings areas, different eBilling software providers will estimate savings from $46,000 to $800,000 per year for a “typical” legal department. However, to truly know the financial impact, the cost of investment must also be considered and this is typically less publicised!
Below are some of the cost considerations to bear in mind when planning your legal spend management project and selecting a vendor.
COST OF SOFTWARE
This is usually a fixed subscription fee per annum and may or may not include hosting, training, and maintenance costs, so look out for these on the proposal. The first year may be higher than subsequent years due to initial set-up costs.