Typical eDiscovery Costs: What To Expect
How much does your business spend on eDiscovery costs? Learn about typical expenses and how to bring your organization’s eDiscovery costs down.
In this guide to eDiscovery, we'll cover the key components of the eDiscovery process, the challenges, and best ...
In this guide to eDiscovery, we'll cover the key components of the eDiscovery process, the challenges, and best practices for conducting eDiscovery. We'll also discuss eDiscovery software and tools, data privacy regulations, and emerging trends in eDiscovery.
In today's digital world, electronic data has become an integral part of our lives. By the end of this guide, you'll have a comprehensive understanding of eDiscovery and be better equipped to navigate the complexities of modern legal practice.
eDiscovery refers to the process or set of activities, including:
for use as evidence in legal proceedings. The eDiscovery process can be complex, time-consuming, and expensive, but it's a necessary part of conducting a thorough and effective legal investigation.
Right-sized eDiscovery refers to an approach in which the eDiscovery process is simplified and tailored to the specific needs and requirements of a particular case, taking into account its size, complexity, and the amount of ESI that needs to be reviewed and produced.
In other words, right-sized eDiscovery means applying the most appropriate level of technology, expertise, and resources to a given case, in order to achieve the desired results in a cost-effective and efficient manner. This approach avoids over-processing or over-collecting data, which can result in unnecessary expenses and time delays.
Right-sized eDiscovery can involve a range of techniques and tools, such as early case assessment (ECA), data mapping, data filtering, data sampling, and the use of analytics and machine learning to identify relevant information and reduce the volume of data that needs to be manually reviewed.
Right-sized eDiscovery focuses on simplifying the identification of needed data, preserving it so that it can't be deleted, and starting the collection process. Overall, the goal of right-sized eDiscovery is to achieve a balance between the costs and risks of the eDiscovery process and the needs of the case.
We've got more information on right-sized eDiscovery, here.
Cloud eDiscovery is the process of conducting electronic discovery in a cloud-based environment. This means that instead of storing data locally, organizations can store their data in the cloud and access it from anywhere with an internet connection.
Cloud eDiscovery allows organizations to reduce the costs and complexities of managing eDiscovery in-house, as well as to take advantage of the scalability and flexibility of cloud computing. With cloud eDiscovery, legal professionals can streamline the eDiscovery process, reduce costs, and improve efficiency, while also ensuring compliance with legal and regulatory requirements.
Office 365 eDiscovery is a powerful tool for legal professionals to streamline the eDiscovery process. It allows users to search, hold, and export content across a variety of Office 365 applications, including
With eDiscovery in Office 365, legal professionals can easily identify and preserve relevant electronic data, as well as analyze and produce it in a defensible manner. This is particularly important in light of the growing volume and complexity of electronic data involved in legal matters.
By leveraging Office 365 eDiscovery, legal professionals can improve their efficiency, reduce their costs, and ensure compliance with legal and regulatory requirements.
Understanding eDiscovery is crucial for legal professionals both at law firms and in-house for several reasons:
Compliance: eDiscovery is a critical part of legal compliance, particularly in the United States where federal and state regulations require parties to identify, preserve, and produce ESI that is relevant to a legal dispute.
Risk management: In today's digital age, legal professionals must be able to navigate the complexities of ESI to minimize risks associated with data breaches, sanctions, or adverse legal rulings. By understanding eDiscovery, legal professionals can reduce the risks of missing critical evidence or inadvertently disclosing privileged information.
Efficiency: eDiscovery can be a time-consuming and costly process, but with the right tools and techniques, legal professionals can streamline the process, reduce costs, and improve efficiency. For example, eDiscovery technology such as machine learning and analytics can help legal professionals quickly identify relevant information and prioritize their review efforts.
Communication: Understanding eDiscovery is essential for effective communication with clients, judges, and opposing counsel. Legal professionals need to be able to explain the eDiscovery process and its requirements to clients, while also being able to negotiate with opposing counsel on eDiscovery-related issues.
Professional development: eDiscovery is a rapidly evolving field, and legal professionals who understand the latest trends and best practices in eDiscovery are better positioned to advance their careers and, importantly, deliver more value to their clients.
It’s critical for legal professionals to understand eDiscovery for compliance, risk management, efficiency, effective communication, and professional development.
The eDiscovery process involves several stages, which can be time-consuming and expensive if not managed efficiently. Here are the typical stages of the eDiscovery process and some tips on how to streamline each one:
Information Governance: The first stage of eDiscovery involves establishing policies and procedures for the management of ESI. To streamline this stage, organizations should develop a comprehensive information governance plan that includes clear guidelines for the creation, storage, retention, and disposition of ESI.
Identification and Preservation: The second stage of eDiscovery involves identifying and preserving potentially relevant ESI. To streamline this stage, organizations should implement processes for identifying relevant custodians, locations, and data sources, as well as procedures for preserving ESI in a forensically sound manner.
Collection: The third stage of eDiscovery involves collecting and processing ESI for review and analysis. To streamline this stage, organizations should use tools and techniques such as data mapping, data filtering, and data sampling to minimize the amount of data that needs to be collected and processed.
Review: The fourth stage of eDiscovery involves reviewing and analyzing the collected ESI for relevance, privilege, and responsiveness. To streamline this stage, organizations should use advanced analytics and machine learning tools to prioritize and categorize ESI, as well as to automate document coding and categorization.
Production: The final stage of eDiscovery involves producing relevant ESI to the opposing party. To streamline this stage, organizations should use tools and techniques such as redaction, encryption, and watermarking to protect sensitive or privileged information, as well as to use eDiscovery software to produce ESI in a consistent and defensible manner.
The key components of eDiscovery involve a combination of
By understanding these components and how they interact, legal teams can better manage the eDiscovery process and ensure that they meet their legal obligations.
People: The people involved in eDiscovery include legal teams, IT personnel, custodians of data, and third-party vendors. Each of these individuals plays a critical role in the eDiscovery process.
Processes: eDiscovery involves a series of processes designed to identify, preserve, collect, process, review, analyze, and produce electronically stored information. These processes should be well-defined, repeatable, and auditable to ensure that they are defensible in court.
Technology: Technology plays a crucial role in eDiscovery, from collection and processing tools to review and analysis software. The right technology can help expedite the eDiscovery process, reduce costs, and improve accuracy. AI is changing the way legal professionals handle electronic discovery, by using machine learning algorithms and analytics tools, AI can help legal professionals sift through large amounts of data to find the relevant information needed for a case.
Data: The data involved in eDiscovery includes ESI, such as:
Understanding the types of data involved in a legal matter and where it is stored is critical to identifying relevant information.
When considering a legal matter, understand the types of data which are involved and where it is stored.
Legal and Regulatory Requirements: eDiscovery is governed by legal and regulatory requirements, such as the Federal Rules of Civil Procedure in the United States. Understanding these requirements and ensuring compliance is essential to avoiding legal consequences and potential sanctions.
Project Management: Effective eDiscovery requires strong project management skills, including budgeting, scoping, scheduling, and risk management. A well-managed eDiscovery project ensures that all relevant information is identified and produced in a timely and efficient manner.
We have listed our trend predictions for eDiscovery in 2023, and 2024.
eDiscovery can be a complex and challenging process. Some of the common challenges include:
Volume of Data: The amount of data involved in eDiscovery can be enormous, which can make it difficult to identify and analyze relevant information. The sheer volume of data can also increase the cost and time required for eDiscovery. To overcome this challenge, organizations can use advanced analytics, machine learning, and data filtering tools to identify and prioritize relevant data, while reducing the amount of data that needs to be reviewed manually.
Data Complexity: The complexity of ESI, such as metadata, embedded data, and social media data, can make it difficult to extract relevant information. To overcome this challenge, organizations can use eDiscovery software that can process and analyze a variety of data types, as well as use forensic experts to extract and analyze complex data.
Data Formats: Electronic data can be stored in a variety of formats, which can pose challenges for collection and processing. For example, data may be stored in legacy systems or proprietary formats, which can require specialized tools or expertise to access.
To overcome this challenge, organizations can work with eDiscovery service providers who have expertise in handling a wide range of data formats. These experts can help to identify and access data stored in proprietary formats, as well as advise on the best tools and techniques for processing the data.
Privacy Concerns: The privacy of individuals involved in a legal matter must be protected during eDiscovery. This can be challenging when collecting and reviewing data that contains personal or confidential information. Organizations can overcome this by, developing a privacy plan.
Organizations such as healthcare providers should develop a comprehensive privacy plan that includes policies and procedures for collecting, reviewing, and producing data that may contain sensitive information. This plan can include guidelines for redacting or anonymizing data that may reveal personal or confidential information, as well as processes for obtaining consent or court orders when necessary.
Cross-Border Data Transfer: The global nature of electronic data can make cross-border data transfers a challenge. Data protection laws in different jurisdictions can conflict, making it difficult to transfer data across borders while complying with all relevant regulations.
To help with this organizations can, implement various technical solutions, such as secure file transfer protocols or encryption, to ensure the security and privacy of data during cross-border transfers. They can also use tools and software that are compliant with relevant data protection laws and regulations.
Cost: eDiscovery can be expensive, particularly if large volumes of data are involved. Legal teams must balance the cost of eDiscovery against the potential value of the information to the legal matter. To overcome this challenge, organizations can use technology-assisted review (TAR) and other analytics tools to reduce the amount of manual review required, as well as work with eDiscovery service providers who offer flexible pricing models.
Technology Complexity: Technology used in eDiscovery can be complex and require specialized expertise. This can make it difficult for legal teams to identify and use the best tools for the job. To help here, organizations can provide training to legal teams to help them understand how to use eDiscovery tools effectively.
This can include training on data collection and processing, document review, and production. See also in this guide how the approach of using Right-Sized eDiscovery can help reduce complexity.
Timing: eDiscovery must be completed within a specific timeline, which can be challenging when dealing with large volumes of data and multiple sources of information. To help with potential timing issues it is recommended to use technology to streamline processes.
Organizations can use eDiscovery software and tools to automate and streamline processes, such as data collection, processing, and review. This can help to reduce the time required for each stage of the eDiscovery process.
Cooperation: eDiscovery often requires cooperation and communication between legal teams, IT personnel, and third-party vendors. A lack of cooperation or communication can cause delays and other issues.
Legal and Regulatory Requirements: The legal and regulatory requirements for eDiscovery can be complex and constantly changing. To overcome this challenge, organizations can work with experienced eDiscovery professionals who have a deep understanding of legal and regulatory requirements and can help them develop a comprehensive eDiscovery strategy that meets their needs.
Communication: Communication among stakeholders, including legal teams, IT staff, and external service providers, can be challenging in eDiscovery. This has been made more complicated due to the increase in remote working. To overcome this challenge, organizations can establish clear lines of communication, implement a project management system, and ensure that all stakeholders are trained on eDiscovery processes and best practices.
There are several best practices that can help ensure the success of an eDiscovery project. These include:
Define a Clear eDiscovery Strategy: Before beginning an eDiscovery project, it's important to define a clear strategy that outlines the scope, timeline, and budget for the project. This should include a plan for identifying and preserving data, as well as a protocol for collecting, processing, reviewing, analyzing, and producing information.
Use Appropriate Technology: Technology plays a critical role in eDiscovery, and it's important to use the right tools for the job. This may include specialized software for data collection, processing, and review, as well as tools for data analytics and reporting. Consider the use of a tool that provides right-sized or simplified eDiscovery in the first instance, where data will be further reviewed by other systems or personnel before final production.
Find out more about right-sized eDiscovery, here.
Collaborate with IT and Other Stakeholders: eDiscovery is a team effort that requires collaboration and communication between legal teams, IT personnel, and other stakeholders. This includes identifying data custodians, working with IT to access and collect data, and ensuring that all stakeholders are aware of the project goals and timelines.
Identify Relevant Data Early: Early case assessment can help identify relevant data and reduce the volume of data that needs to be processed and reviewed. This can save time and money, while also improving the accuracy of the review process.
Preserve Data Effectively: Data must be preserved effectively to avoid it being tampered with or deleted, and ensure that it can be produced when required. This can include preserving data from backup systems, as well as ensuring that data is not inadvertently deleted or modified during the eDiscovery process. Microsoft 365 subscribers can use the hold feature in M365 eDiscovery to backup data.
However, holds are not considered as a method of backing up data in Microsoft 365. For that you'll need a dedicated tool, as it is still your responsibility to make sure that your cloud data is backed up.
Review and Analyze Data Thoroughly: The review and analysis process is critical to identifying relevant information and ensuring that privileged information is protected. This process should be thorough and methodical, and should include the use of analytical tools to identify trends and patterns in the data.
Monitor and Audit the Process: eDiscovery projects should be monitored and audited to ensure that they are being executed according to the defined strategy and best practices. This can help identify and address issues early on, and can improve the defensibility of the process if legal challenges arise. The monitoring and auditing process can also identify potential areas to improve on, or to further simplify some of the complex steps.
The legal industry, like many others, has been greatly influenced by modern technology. The American Bar Association suggests that younger attorneys tend to adapt to these changes quickly, while more experienced attorneys may need to make a concerted effort to stay up-to-date. It is essential for attorneys to be aware of how technology has altered the expectations of their clients and to plan accordingly.
There are a wide variety of eDiscovery software and tools available on the market, each with its own set of features and capabilities. Some of the most common types include:
Data Collection Tools: These tools are used to collect data from a wide variety of sources, including
Processing and Review Tools: These tools are used to process and review the collected data, often in bulk. They may include features such as data deduplication, email threading, and document clustering, and can help legal teams identify key pieces of information more quickly.
Analytics and Visualization Tools: These tools are used to analyze and visualize large amounts of data, often using machine learning algorithms to identify patterns and insights. They can help legal teams identify key trends and outliers in the data, and may include features such as predictive coding and email analytics.
Project Management Tools: These tools are used to manage the eDiscovery process, including tracking deadlines, assigning tasks, and monitoring progress. They can help ensure that eDiscovery projects stay on track and within budget, and may include features such as reporting and analytics.
Managing the life cycle of eDiscovery software and tools is essential to ensure that organizations have access to reliable and up-to-date technology that can support their eDiscovery needs, both now, and in the future.
Here are some tips:
Regular Review: Organizations should regularly review and update their eDiscovery software and tools to ensure they are still meeting their needs and are up-to-date. This can include evaluating new features and capabilities that may improve the eDiscovery process, as well as retiring tools that are no longer useful. Consolidating and simplifying the eDiscovery tools used within an organization is also a good idea.
Test Before Implementing New Tools: Before implementing new eDiscovery software or tools, organizations should test them to ensure they are compatible with existing systems and can integrate seamlessly into the eDiscovery process.
Check Compatibility: Organizations should ensure that eDiscovery software and tools are compatible with other systems and applications used in the eDiscovery process. This can include working with external vendors and IT personnel.
Training: Organizations should provide training to personnel on how to use eDiscovery software and tools effectively. This can help to ensure that personnel are able to use the software and tools to their full potential. This is an ongoing process, as new features in software might require additional training. Further, covering training more than once also helps with employees as their job evolves or changes.
Monitor Performance: Organizations should monitor the performance of eDiscovery software and tools to ensure they are meeting performance benchmarks and service level agreements.
With eDiscovery software and tools that your organization uses, make sure to regularly review its usage, keep it up to date, ensure employees are adequately trained and that it meets your performance expectations.
When selecting eDiscovery software and tools, there are several factors that should be considered, including:
Cost: eDiscovery software and tools can be expensive, so it's important to consider the cost of the software and any associated recurring fees. Some tools may charge per user or per gigabyte of data, so it's important to understand the pricing model before making a decision on the software to use.
Features: Different eDiscovery tools offer different features and capabilities, so it's important to consider which features are most important for your specific case or organization. For example, if you're dealing with a large volume of data, you may need a tool that offers robust search and analytics capabilities, or has advanced machine learning capabilities to help manage a large volume of data.
Usability: eDiscovery software and tools can be complex, so it's important to consider the ease of use and the learning curve for each tool. Look for tools that offer intuitive interfaces and clear documentation, and consider any training or support that may be required.
Security: Because eDiscovery involves handling sensitive and confidential data, it's important to consider the security measures in place for each tool. Look for tools that offer strong encryption, data access controls, and other security features to ensure that your data is protected.
For example legal professionals such as litigation lawyers will need to consider specific needs when selecting the right eDiscovery software and tools to ensure compliance with data privacy regulations such as GDPR and CCPA. When selecting an eDiscovery tool you should also consider its approach to cybersecurity, current defensive and offensive security measures.
Integration: If your organization already uses other software tools, such as document management systems or project management tools, it's important to consider whether the eDiscovery tool can integrate with these existing systems. This can help streamline workflows and avoid duplication of effort.
Most organizations that make the move to the Microsoft Office 365 (M365) cloud will use Microsoft Teams for much of their business communication. Does the chosen eDiscovery tool have the ability to handle threaded conversations?
Overall, selecting the right eDiscovery solutions requires careful consideration of a variety of factors. By taking the time to evaluate the available options and considering the specific needs of your organization or case, you can select the best tools for your eDiscovery project. While Microsoft 365 offers built-in features in Microsoft Purview for eDiscovery, you may find that using a specialized eDiscovery tool offers more capabilities.
Microsoft Purview offers 3 eDiscovery solutions whereas specialized tools often provide more advanced search and analytics capabilities, as well as better integration with other systems and applications used in the eDiscovery process. Additionally, specialized eDiscovery tools may offer more robust security measures to protect sensitive and confidential data.
Data privacy regulations, such as the European Union's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), have had a significant impact on eDiscovery practices. These regulations are designed to protect the privacy of individuals by establishing strict rules around the collection, use, and storage of personal data.
Under these regulations, individuals have the right to access, delete, and transfer their personal data, and organizations are required to obtain explicit consent before collecting or processing personal data.
From an eDiscovery perspective, these regulations have added complexity and cost to the process. Legal teams must ensure that they are complying with all relevant regulations when collecting, processing, and producing electronically stored information.
This may require additional steps, such as obtaining consent from individuals or implementing technical and organizational measures to protect personal data. In addition, organizations may be required to respond to data subject access requests, which can involve identifying and producing large volumes of personal data in a short timeframe.
Overall, data privacy regulations have had a significant impact on eDiscovery practices, requiring legal teams to be more careful and deliberate in the way they handle personal data. While these regulations can add complexity and cost to the eDiscovery process, they are an important step in protecting the privacy of individuals and ensuring that their personal data is handled in a responsible and ethical manner.
Measuring eDiscovery readiness involves evaluating an organization's ability to effectively manage eDiscovery processes. Here are some tips on how to measure your eDiscovery readiness:
Begin by evaluating existing eDiscovery processes to identify strengths and weaknesses. This can include evaluating how data is collected, processed, and reviewed, as well as identifying any bottlenecks or areas of inefficiency.
Evaluate the technology used in eDiscovery processes, including software and tools used for data collection, processing, review, and production. This can include evaluating the functionality and compatibility of existing tools, as well as identifying any areas where new technology may be needed.
At Cloudficient, we firmly believe that organizations are looking for a tool like Expireon. Take a look here, for more information on how it can revolutionize your eDiscovery toolset.
Assess the knowledge, skills, and experience of personnel involved in eDiscovery processes. This can include evaluating whether personnel have the necessary training and expertise to effectively manage eDiscovery processes, as well as identifying any areas where additional training may be needed.
Identify potential risks that may impact eDiscovery processes, such as data breaches or data loss. This can include evaluating the security of systems and data, as well as identifying any areas where additional security measures may be needed.
Based on the results of the evaluation, develop an improvement plan to address any areas of weakness or risk. This can include implementing new technology, providing additional training to personnel, or developing new processes to improve efficiency and reduce risk.
Regularly monitor eDiscovery processes and make adjustments as needed to improve efficiency and reduce risk. This can include implementing new technology or processes, as well as providing ongoing training to personnel.
How much does your business spend on eDiscovery costs? Learn about typical expenses and how to bring your organization’s eDiscovery costs down.
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