Over recent months the ongoing revelations at the News of the World and subsequent investigations have brought into focus the importance of data visibility and auditable trails of information that can be called upon as evidence, should it be required. Whilst this is an exceptional and extremely highly visible case, it has perhaps raised the profile of the e-discovery process itself, and highlighted the need for organisations to have a sound strategy to collect, review and deliver electronically stored data for either an internal investigation or external investigation.
Electronically stored data and its analysis has become a crucial part of any investigative procedure and the sheer volume of unstructured user created data, such as emails, documents, spreadsheets etc, has only added to the size of the problem. The problem is further exacerbated by the variety of locations and devices users store data on – PCs, servers, laptop, smart phones, iPads etc. It’s a procedure which requires skilled specialists and technology which can transform these vast reams of disconnected data into meaningful information.
Due to the complexity and time involved it has, traditionally, been a process which was outsourced to law firms and consultants, however that’s changing. That change is driven by factors of cost but also by the increasing range of digital investigations required – from litigation, HR and fraud to governance and compliance. Over the past few years, surveys have shown consistent growth in the number of organisations that are choosing to bring parts of the eDisclosure process in-house.
So what are the relative pros and cons of either implementing an in-house solution or outsourcing the procedure?
By outsourcing e-Disclosure, IT teams can focus on core business objectives and, as a result, investigations can be carried out without putting any additional strain on internal staff and resources. Outsourcing e-Disclosure is also a sensible choice if the amount of data an organisation holds is minimal and the company is less likely to face litigation.
By bringing eDisclosure in-house or ‘in-sourcing’, companies can manage the process like most business functions and organisations can hand-select skilled employees to assume ownership. This means that the individual organisation will then have greater control of their electronic data, with more visibility over the investigation process, which can enable them to build a more robust case in their defence. Having an established internal team that can be quickly mobilised also allows for improved efficiency and familiarity with the business processes and associated tools. Consultants can always be utilised for extreme peaks but the vast majority of cases will be handled by trusted in-house resources.
One of the principal benefits of in-sourcing eDisclosure is also cost reduction. By investing in an eDisclosure solution and bringing the process in-house, organisations need to make an investment in software, hardware and training. However, by avoiding the variable costs associated with the use of outside vendors/consultants, an organisation would only need to be dealing with a few major matters to be able to pay off an investment in under 12 months. Businesses that outsource the process would not have to make the capital investment required for infrastructure implementation and software and hardware expenses such as user licenses and software updates, but the cost of having to outsource for each individual case can be a huge burden on company expenditure. Often when you need the help is when you are most vunerable and less able to negotiate.
There are a multitude of factors that should be considered when evaluating the benefits of moving eDisclosure in-house or outsourcing the process to consultants, but many companies are finding the cost and control of in-house collections and early case assessment is a practical and much more productive solution. This applies to all companies, however, larger, multinational and highly regulated companies such as those in banking and utilities, or those with significant IPR that are more prone to investigation, would certainly benefit from in-house eDisclosure.