eDiscovery is a complex and labor-intensive process that requires a fusion of legal and technical expertise, specialized software and tools, and a substantial amount of time and resources, contributing to the high expense. The enormous quantity of data that is electronically generated and stored leads to mountains of data needing to be reviewed during the eDiscovery process, leading to higher processing demands and costs. When this data originates from many different systems/locations and comes in various formats, it increases the complexity, making it more challenging and time-consuming to collect and analyze the data. An eDiscovery project will likely require both legal and technical expertise, involving extensive time from both attorneys, their support staff, and IT professionals. Tight timeframes mandated by court-ordered deadlines can increase the resources required to successfully manage the process. The tools involved with eDiscovery, including software platforms and other cutting-edge features, can be expensive to purchase and maintain.
eDiscovery is likely to only grow in complexity and demand. eDiscovery refers to the process of identifying, collecting, processing, reviewing, and producing electronically stored information (ESI) in response to a legal or regulatory request or requirement. This broad definition makes it hard to determine an exact growth rate. However, according to MarketsandMarkets, the eDiscovery market is expected to grow from $11.2 billion in 2022 to $17.1 billion by 2027 growing at a compound annual growth rate (CAGR) of 8.7% during this period. eDiscovery and its challenges will not go away; it will only get more intensive and complicated.
What’s behind growing eDiscovery Costs and how can it be addressed?
DATA GROWTH
Data Volume: According to a study by the International Data Corporation (IDC), the volume of data created worldwide is expected to reach 175 zettabytes by 2025, up from 33 zettabytes in 2018. This type of increase in data volume can significantly impact eDiscovery costs, as more data means more time and resources required to process and review.
Proportion of Useful Data: For the previous ten years, the percentage of relevant material in the total volume of data has stayed largely stable, usually hovering between 1% and 5%, according to the eDiscovery Institute.
Impact on Overall Cost: Despite the decrease in cost per GB, the overall cost of eDiscovery has increased over the past ten years due to the increase in data volume and its associated processing demands. A thoughtful approach regarding the data asked for during the initial meet and confer can reduce the amount of irrelevant data sought, processed, and reviewed. Support from a well-versed eDiscovery professional can help guide this process and ensure misguided data demands are not simply creating more work and expense for the eDiscovery team.
DATA COMPLEXITY
Data Sources: The number and diversity of data sources can significantly impact eDiscovery costs. If data is spread across multiple platforms, such as email, social media, and instant messaging, it will likely require more time and effort to collect and review.
Data Format: Some data formats may be more complex to process and review than others. For example, data in non-standard formats, such as proprietary software or legacy file types, may require additional technical expertise or specialized software to process.
Data Location: Gathering and interpreting data from cloud-based platforms, distant servers, or foreign locations may require additional tools and knowledge.
Data Security: The eDiscovery process might become more complicated and expensive due to data security measures like encryption or password protection. Decrypting and processing encrypted data requires additional knowledge, time, and resources.
Data Quality: Costs associated with eDiscovery can be affected by poor data quality, such as damaged or incomplete data. When reviewing and processing such data, it may be necessary to use more time and resources or even hire forensic experts, which might result in a considerable cost increase.
TIMEFRAME
Urgency: If production needs are urgent, costs will increase due to increased personnel demands, faster processing times required, and other extra resources.
Collection: The duration of data collection can influence eDiscovery expenditures as well. Gathering data from numerous sources is time-consuming, and extra resources would be needed to speed up the collection process when timeframes are short.
Processing: De-duplication, data filtering, and format conversion are all parts of data processing. Processing times can vary greatly depending on the amount and complexity of data.
Review: Reviewing can take significant time, especially when working with a high volume of data. Review workflows may need to be accelerated in time-constrained circumstances, for example, by adopting technology-assisted review or prioritizing data for review based on relevance.
REVIEW STRATEGY
Review Scope: A more extensive review's scope will cost more overall because it will take more time and resources to complete. It's critical to establish a clear review approach, specify the review's parameters, and rank the data under consideration for review according to its importance to the subject.
Review Workflow: The cost of eDiscovery can also be impacted by the review methodology. Several procedures, including linear or non-linear review, quality control checks, and focused searches, might be used depending on the complexity of the case. Reduced review time and expenses can be achieved with a streamlined and effective review methodology.
Review Tools: eDiscovery costs might also be impacted by the tools utilized to enable the review. Predictive coding and machine learning are two cutting-edge review techniques that can speed up the process and cut costs. Deploying and administering these tools may call for additional knowledge and resources.
Review Team: A larger review team will be required in cases with larger amounts of data and tighter timeframes, increasing overall expenditures.
EXPERTISE
Technical Expertise: Successful eDiscovery requires a solid understanding of technology, particularly concerning data collection, processing, and review. Technically competent people can help streamline these processes to reduce the time and supplies required to complete them. Yet, hiring someone with technical skills can be expensive and may necessitate additional investment for training and growth.
Legal Knowledge: Examining and preserving evidence through eDiscovery requires legal expertise. Well-trained staff can help reduce the risk of sanctions or other legal consequences by ensuring that data is stored and reviewed in compliance with legal and regulatory standards.
Vendor Knowledge: When eDiscovery is hired out to a third-party vendor, vendor knowledge is essential. The vendor must have legal and technical understanding and experience conducting eDiscovery initiatives. A skilled provider can guarantee that the eDiscovery process is completed effectively and quickly, reducing overall costs.
Internal Expertise: Internal expertise may also have an impact on eDiscovery costs. Firms with in-house eDiscovery experts may be able to handle any or all of the process's steps independently, reducing the need for outsourcing to outside suppliers. This can result in a reduction in overall expenditures, but it may also call for increased funding for internal employee training and development.
When it comes to eDiscovery, knowledge and expertise are essential, but they do not have to be pricey. Firms and businesses can save time, money, and resources by using appropriate technologies and engaging reliable support, like the partnership of Indexed I/O and Evidence Solutions. A full range of eDiscovery technologies from Indexed I/O are available to help firms of all sizes cut expenses while maintaining compliance with legal and regulatory requirements. Our eDiscovery experts can help you quickly and effectively acquire, process, review, and produce data using Indexed I/O efficiently. Reach out today for your free consultation and project estimate!
