E-discovery savings can reach 25% with right approach, say analysts

When two companies sue each other they have the right to ask for relevant documents from the other party in a process called discovery. When the documents are digital ones, such as emails or the contents of databases, the process is called electronic discovery or e-discovery.

Gartner has said that companies that carefully document all the searches they make in the e-discovery process can save up to 25% on the costs of the discovery process.

"By the end of 2012, enterprises that fully document their search processes in e-discovery will save 25% on their collection processes," the company said. "Enterprises of all sizes, and those facing any number of legal actions annually, should have a simple set of practices to follow anytime they need to embark on an e-discovery process in the near future."

The company said that its analysts believe that by 2014 there will be a standardised means of recording search processes that both IT staff and lawyers will agree on.

"Companies need to own the products that will be necessary for them to address litigation and understand that those products will not have the same positive impact unless they are supported by repeatable, effective, systemic processes for lawyers and IT to follow," said Whit Andrews, a vice president at Gartner.

Because most corporate communication is now digital, e-discovery costs can spiral.

Gartner has published five guidelines for the e-discovery process that it says will help to reduce the costs of e-discovery.

It says that all involved parties, including legal and IT staff, should communicate as soon as litigation is threatened and throughout the process. It said that senior court lawyers should be involved from the start and that all the documents and data should be analysed early. Gartner also advised that companies should fully price different legal strategies that demand different levels of e-discovery and that they should document all their decisions.

E-discovery expert Mark Surguy of Pinsent Masons, the law firm behind OUT-LAW.COM, said that though disclosure management technology has long existed, businesses were still struggling to grasp its benefits.

"The technology has been ignored by business for many years, there has been a perception that it has been too expensive," he said.

Surguy agreed with Gartner that a vital part of keeping e-discovery costs down is communication between legal and IT staff.

"Lawyers and the IT departments should be collaborating to get the best out of the technology and this doesn't happen as it should, there is often a real silo mentality," he said. "The functions don't talk to each other and communication between IT and internal legal departments is not good enough, never mind with outside counsel."

Surguy said, though, that the right combination of technology and people can result in savings at least as great as those identified by Gartner.

"This is not just about technology, it's about technology in practice, in context," he said. "Used with people who know what they are doing the savings will be potentially even greater than 25%."