Tech and transformation for legal teams: Key takeaways from the June 10 Lexology Masterclass

The role of legal departments is evolving at an unprecedented pace. Not content with being risk mitigators, today's in-house legal teams are transitioning into strategic partners within their organizations. This evolution comes with challenges—but also opportunities, many of which were discussed during the June 10 Lexology Masterclass titled Tech and Transformation for Legal Teams.

The masterclass, centered on the insights of the highly regarded 2025 Legisway Benchmark for Legal Departments , offered a deep understanding of how legal teams are addressing major challenges and leveraging new strategies to stay ahead.

If you missed the live event, don’t worry—we’ve got you covered!

This article recaps key points from the Masterclass, presents an opportunity to access the full recording  and lays down the next steps to stay ahead of industry changes.

Key insights from the masterclass

The evolving demographics of legal teams

The shifting landscape of in-house legal departments was a key focus. According to the 2025 Legisway Benchmark, legal teams across Europe and the US are leaner, with 76% of respondents working in teams of up to 10 employees. Smaller teams are often required to do more with less, increasing the reliance on innovative strategies and tools.

Additionally, over half of the respondents (54%) were senior staff, including General Counsel and Chief Legal Officers, underscoring the growing influence of legal teams in organizational strategy. Legal professionals are no longer limited to transactional duties but are actively contributing to business decision-making.

Contract & entity management: challenges and digitalization

Handling contracts and corporate entities remains a core pillar of in-house legal work, but inefficiencies in these areas can often derail operations.

Among the top challenges:

• Lack of visibility (60%) into the contract lifecycle.
• Standardization gaps (52%) that slow down operations due to inconsistent processes.
• Slow turnaround times (33%), which diminish business agility.

Despite these challenges, the adoption of Contract Lifecycle Management (CLM) software is growing, now at 42%, up from 33% last year. These tools are key to creating a more efficient, standardized contract process.

Entity management also shows fragmentation, with only 34% relying on specialized software, while many still use spreadsheets (27%) or shared drives (30%). This reliance on outdated systems poses risks such as lost data and reduced compliance.

Outsourcing in legal teams

Facing increasing complexity and shrinking timelines, many legal teams are outsourcing specific activities. The masterclass addressed two primary types of outsourcing:

1. Outsourcing to law firms

   Law firms remain a reliable option for tasks requiring specialized expertise or dealing with peak workloads. The benchmark revealed that 86% of legal departments engaged external counsel in the past year, with reasons including:

   • Lack of in-house expertise (70%).
   • The need for additional perspectives on complex matters (51%).
   • Insufficient in-house time or resources (48%).

   Notably, legal departments allocated 37% of their annual budgets to legal firms, underlining their value in handling high-stakes areas like litigation, IP, and corporate law.

2. Outsourcing to ALSPs

   Despite lower adoption compared to law firms, Alternative Legal Service Providers (ALSPs) are gaining recognition for their cost-effective solutions, particularly for high-volume tasks like contract review and legal research. Around 32% of teams worked with ALSPs last year, with the primary reasons being:

   • Lack of expertise (48%).
   • The matter’s size and complexity (38%).
   • Scalability for fluctuating workloads (37%).

   However, budget limitations and unfamiliarity with ALSP service offerings continue to slow widespread adoption.

Be the team that leads, not lags

The insights shared in the 2025 Legisway Benchmark for Legal Departments are designed to put your legal team on the path to operational excellence. By leveraging technology and outsourcing wisely, your department can transform into a proactive, strategically integrated force within your organization.

Want the details? Download your free copy of the full report today  and learn how to position your legal team for success.

Watch the full recording: