SFL Data Conducts Custom Audits to Bolster and Streamline In-house e-Discovery Processes for Two Clients, Helps Realize Savings of up to 75 Percent on Litigation and Discovery Costs

Today’s corporate General Counsel often consider bringing e-discovery in-house in an attempt to reduce costs. Before advising their corporations to make this leap, a comprehensive evaluation of the discovery process must be performed to detail both the advantages and the pitfalls of this strategy. SFL Data recently performed in-depth, custom audits for a software firm and manufacturing company that were seeking to refine their litigation response and e-discovery procedures.

The Challenges:

The software firm wasn’t sure how to best address its rapidly-increasing volume of data collection needs. Many departments involved – including human resources, compliance and in-house counsel – often lacked the experience needed to move forward with an effective data collection method. Unfortunately, prior experiences with outside e-discovery service providers resulted in astronomical invoices, even before the ESI was processed or reviewed by attorneys. In addition, more than half of its workforce is located overseas. The resulting logistical challenges and international privacy restrictions further amplified the firm’s data collection challenges. Without a standardized protocol for litigation hold or in-house e-discovery resources to manage the process, the firm found itself handling every case differently and growing desperate for a repeatable and cost-effective solution. They also weren’t sure how to navigate the myriad of software products on the market. The firm ultimately decided it needed an “agnostic” audit of its processes and expert recommendations for how they should move forward.

The second audit was for a manufacturing company that needed to refine its document retention and data management policies to alleviate rapidly-increasing data storage requirements. Its IT department had become increasingly involved with ESI data collection, but wanted to transfer that responsibility to an outside provider. Although the company worked with outside e-discovery providers in the past, inconsistencies and high prices sparked a search for a more cost-savvy solution. In addition, the company wanted to reduce the risk associated with backup tape restoration and limit the amount of custodian disruption during data collection. Like the software firm, they desperately needed a detailed e-discovery readiness “roadmap” to determine an action plan in the event of a lawsuit.

The Solution:

For both companies, SFL Data delivered a custom LitAudit™ to identify the key gaps in current setup. We began by conducting fact-finding interviews with those who had insight to the e-discovery processes. For the software firm, we recommended a host of actions that would help reduce the process inconsistencies, resource consumption, and margin for human error during the data collection phase. To alleviate the data collection process, we recommended the company establish a central point of command to take charge of all planning and tracking requirements. Alternatives were also proposed to lessen disruptions for senior managers and executives who regularly appear on multiple custodian lists. We also provided detailed recommendations about early case assessment (ECA) and volume-reduction alternatives. The final template fit the company’s future e-discovery strategy, and included concrete methods to reduce both the costs and risks associated with this process.

For the manufacturing company, we authored a detailed report of recommendations to help ensure seamless implementation of a next-generation data archiving tool. This new operation would create value around data storage requirements, as well as e-discovery. Specifically, we suggested the client eliminate sources of email storage outside the new archiving technology (e.g. distributed Outlook .PST files). The audit also provided guidance related to litigation hold management, records retention policies, overall e-discovery readiness and novel options for conducting remote data collection. In addition, we provided workable strategies to reduce the risks of confidential/proprietary data being copied from the company’s computer systems.

The Benefit:

Each LitAudit™ revealed that leveraging a smart workflow with best-of-breed technology reduces the number one e-discovery cost multiplier: attorney review. By using SFL Data’s e-discovery managed service, the software company will realize cost-savings of 50 to 75 percent; in a recent European Commission matter for the software firm, we were able to cull down the data by an estimated 99 percent prior to attorney review. We are confident our recommendations to the manufacturing company will help reduce e-discovery costs by 30 to 50 percent.

Between the Federal Rules of Civil Procedure and the advent of interactive social media, e-discovery is an evolving process that requires litigation expertise, superior technology and the ability to work efficiently under fire. SFL Data has all three. To learn more about the e-discovery managed service, visit www.SFLData.com or call 415-392-2900.