What’s It Going to Cost Me: Key Factors That Drive eDiscovery Costs

Understanding potential costs is often one of the top concerns for law firms and their end clients when embarking on the eDiscovery process. With multiple moving parts, cost management can feel daunting, especially without insight into the factors that drive expenses up or keep them manageable. Fortunately, with some planning and strategic decisions, it’s possible to reduce costs without compromising efficiency or quality. Here’s a closer look at the factors that impact eDiscovery costs and some practical ways to optimize your spending.

Start With a Conversation

A simple yet effective way to keep costs under control is to have an open conversation with an eDiscovery provider from the outset. When providers understand your budget, scope, data type, case protocol, and desired outcomes, they can tailor the eDiscovery process accordingly. Being transparent from the beginning allows your provider to guide you toward a more streamlined process, saving you from unnecessary steps and expenses.

How Much Data is There?

One of the most significant variables in eDiscovery costs is data volume. It’s often difficult to gauge the true size of discoverable data to forecast the total cost associated until a comprehensive assessment and collection of the applicable sources is complete. Collecting and measuring the amount of data first makes it easier to make a cost projection that can be communicated to an end client. Otherwise, having an unknown data volume adds a layer of budget uncertainty.

Determine Data Parameters

The more you can narrow down the data, the more you can reduce expense. Here are several ways to accomplish this:

Limit Collection Dates: Setting date restrictions across all data sources to keep the scope manageable. Gathering only data within defined time frames minimizes unnecessary volume, saving processing and review costs.

Evaluate Opposing Counsel’s Discovery Requests: Determine whether opposing counsel’s discovery requests are overly broad and, if so, negotiate a reduction of custodial sources that are not in scope.

Refine Search Terms: After sampling search terms on the data set, fine-tune them with opposing counsel. Poorly developed search terms can lead to many false positive hits, ballooning the amount of hosting and documents to review.

Leverage Technology for Efficiency

In the digital age, technology offers powerful tools to streamline eDiscovery, helping reduce both time and cost:

Data Culling: Data culling involves filtering out unnecessary or duplicate data, leaving only what’s most relevant for the case. This step ensures that only useful data moves forward, trimming storage, processing, and review costs.

Early Case Assessment (ECA): ECA allows you to sift through data early to eliminate irrelevant information. By identifying what truly matters, you can reduce the scope of your review, which cuts down the hours and resources needed during the main eDiscovery phase.

E-Mail Threading: By grouping related emails together, you can identify inclusive and non-inclusive threads, allowing you to focus on reviewing inclusive emails only and skip duplicates.

Near Duplicate Elimination: Identify near duplicates to determine whether they can be culled out of the review population.

Automated Review: Automation tools, often powered by artificial intelligence, can quickly identify and tag relevant documents, making review far more efficient. This technology reduces the need for time-consuming manual review, which can quickly add to costs.

Avoid Self-Collection

One frequent misstep our clients make is attempting to collect data themselves rather than relying on a seasoned eDiscovery provider. Self-collection can lead to mistakes that are not only costly but can also compromise data defensibility, which is critical in legal proceedings. Partnering with eDiscovery experts ensures your data is collected efficiently, accurately, and defensibly, avoiding over collection and expensive rework or, even worse, legal challenges down the road.

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Managing eDiscovery costs doesn’t have to mean cutting corners or sacrificing quality. By understanding the main cost drivers and working closely with your provider, you can optimize the process to meet your goals efficiently and within budget. With thoughtful planning, the right technology, and an experienced team, achieving cost-effective, high-quality eDiscovery outcomes is possible. Contact us for a free consultation at [email protected] to learn how we can support your litigation needs and provide the most comprehensive discovery services.

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