Top 7 Things Your eDiscovery Vendor Doesn't Want You to Know

Understanding eDiscovery Lingo?

A recent survey shows that legal professionals acknowledged the importance of controlling costs as the number-one success factor in a matter. In the same way law firms strive to demonstrate efficiency and holistic protocols internally, they also recognize the value of third-party technologies to streamline key aspects of litigation and reduce costs. With the keys to success being practical budgeting and predictability, it is a fair assumption that eDiscovery vendors touting the expert application of advanced technologies would be the most likely direction to take at the outset of a matter. But just as no two law firms are the same, the diaspora of eDiscovery vendor workflows, billing models, and client engagement styles can confound even the most thorough consumer.??

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The following will provide insight into the tricks of the trade and offer some basis for comparison as you weed out the excellent eDiscovery vendors from the bad:

1. Data Collections

There is less need than ever before for you to pay a vendor to come on-site. In the past decade, ESI collection tools have evolved dramatically. Rather than manually connecting a collection device to every custodian's hard drive or server, new tools collect the entire data set from multiple custodians and data sources, using a single collection tool through your organization's computer network.

2. In & Out per GB Data Processing

What was once a tedious computing task is now completed with the click of a button. So, why would you pay a data ingestion fee? Competitive ingestion fees are the biggest shill in eDiscovery right now. Consider a 100GB original data set ingested "in" at $75 per GB culls to 20GB at a $150 per GB "out" cost. You've just paid $7,500 for a software system to remove 80GB of irrelevant data and now have to pay another $3,000 to get your hands on the relevant data. Data processing alone has cost you $10,500, and you ultimately paid $225 per GB of relevant data.

With the commoditization of data processing on the horizon, many forward-thinking eDiscovery vendors are shifting to a single cost per GB model based on the relevant data rather than forcing you to pay fees on the entire data set at the outset. This pivot allows you to go from paying $225 per GB to as little as $100 per GB for processing.

3. Long-Term Data Hosting

Data hosting within your ECA or Review tool is an expense dictated by the software platform you choose and isn't going anywhere. Still, advances in cloud computing have made more cost-effective options available for data requiring storage for more than a few months. The availability of Nearline Storage can take your data hosting costs from $20 per GB to as little as $5 per GB while keeping your data in an accessible and secure, cloud-based server. This option also eliminates double charges on your data as eDiscovery vendors re-upload or re-process if you have multiple cases involving the same custodian(s).

4. Minimum Fees for Data Hosting

If your eDiscovery vendor is charging you monthly minimum fees for data hosting – whether it's $500 or $50 per month – you should seriously reconsider the relationship. The technology around data hosting has advanced allowing eDiscovery vendors to host multiple clients on the same server while still securely and ethically segregating that data to prevent commingling. The next time your vendor mentions that the $500 minimum is for their servers, demand that they tell you exactly how much of a server you are paying for and how many other client's data is on that same server. Unless you negotiated a dedicated server, you are probably throwing your money into a bottomless bag and more than a handful of your peers.

5. Professional Services/ Project Management Fees

Read the fine print here. Observe the included cost. (If you are paying more than $150 per hour, you are paying too much). Your vendor should provide a transparent cost of service, and you shouldn't pay extra for the following:

• One-time training – Demand ongoing, on-demand training. If your people need a refresher on the most effective use of the software or you have a personnel change midstream, you shouldn't have to pay extra.
• Consultation on Review and Preparation of ESI and Collections – The latest changes to the Federal Rules of Civil Procedure (FRCP) make expert consultation at the earliest stages of a case critical. Don't let your eDiscovery vendor use it against you. Choose a vendor that will work with you.
• Changes to search terms and workflows midstream – This charge directly results from your eDiscovery vendor using multiple disparate systems with specialized PMs to handle your data. Vendors do this because they bought into old technology and can't justify the expense of abandoning it. If your vendor charges you to make changes in the analysis phase, they are not using the most up-to-date methods to serve you or your client.
• Custom Scripts and Reporting – All scripts and reports should be available during production and throughout the analysis phase. They are yours, they only apply to a specific matter, and they should be a consideration in the cost of doing business – not a surcharge.

This is where the stark difference between an eDiscovery vendor being a contractor vs. a partner rears its ugly head. These items should be a courtesy provided in your best interest and the best interest of the matter at hand – not your eDiscovery vendor's bottom line.?

6. Data Productions

Before you read this, take a look at your last invoice. If the words "no charge" or "included" aren't on there for data production, you are one of many professionals using a vendor service stuck in the Stone Age. I've seen as much as $350 per GB charged for TIFF conversion, and it is obscene. Similar to data processing, the computing power behind the latest eDiscovery platforms simplifies the role of the Project Manager within a few clicks, including all of the nickel and dime charges for PDF conversion, OCR conversion, Color Images, Bates Labeling, Branding, etc. The only thing you should be paying for with productions is PM time, which should be nominal.

7. Data Destruction

If you have detected a theme in numbers one through six, you know what to expect here. Do not allow your eDiscovery vendor to charge you for data destruction. The only redundancies built into your hosting platform were intentional and easy to find and destroy post-approval. While case closing can be more complicated and require the project manager time to organize requested data or physical media devices for data transmission, disposing of your data should be provided at no cost. After all, getting rid of your data frees up space on a vendor's servers for additional clients/matters.

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IST Discover-E provides licensing for processing and hosting, giving our clients the ability to create new cases, process an unlimited amount of data, utilize proven Early Case Assessment workflows, and manage records within Relativity.

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IST Discover-E Case by Case - or - Managed Services Solutions Include the following:

• Consulting
• Early Case Assessment, Litigation Readiness & Legal Hold
• Data Collection/ Digital Forensics
• Data Processing
• Hosted Review
• Analytics
• Technology-Assisted Review (TAR)
• Managed Lawyer Review
• Production
• Staffed Litigation Support
• SOC2 Type 2 Compliant Data Security

Original article with downloadable PDF linked here