Are we Pricing Ourselves Out of Business?

http://ow.ly/atPCO

An article by Mikki Tomlinson posted on the eDiscovery Journal website.

This article discusses pricing issues associated with eDiscovery service providers, and wonders if lower prices are reducing the quality of services.

The article states, "One might argue that because of the advances in technology, the vendors are in a better position to continue to lower their prices, yet maintain their ability to provide quality services and profit. Perhaps that is so. However, I still feel a little uneasy. Let’s break it down. What does it take to manage a collection/processing/production project? People. Process. Technology.

People: This is not a “push this button and you are done” environment. Those involved in the collection/processing/production pieces need to have good, solid knowledge of what they are doing and why. Granted, labor loads are lightened by technology improvements that decrease the time needed for processing, loading, conversion, and production activities. However, the labor expertise required to handle ESI has not decreased. If anything, it has increased. So, while the amount charged by a service provider goes down, the cost of quality employees does not.

Process: Developing solid and efficient processes is key in eDiscovery. These process are oftentimes the advantage that one service provider has over another. You can’t afford to not have good process. Again, while the amount charged by the service provider goes down, the efforts in developing and carrying out solid and efficient processes does not.

Technology: This is where we perhaps have the most impact on pricing. As stated above, technology has certainly evolved in ways that make the entire process move faster. But has the service provider’s cost of technology really gone down enough to bring the prices down to $75 per GB from collection to review?"

The article then mentions that a price model of $75 per GB needs to be closely examined, as the true "apples to apples" comparison can sometimes reveal that a pricing model is not as seemingly advantageous as it may seem.