I am still in prophetic mode for the New Year and new decade. Two big drivers in the coming year, and for some time to come, will be the recession and new technology. Here are some developments touching on one or the other or both, as reported in various outlets in the US. Can it be long before they become as big here?‘Unbundling of legal services’ is much discussed in the US, to the extent that it made it into the New York Times on New Year’s Day in a long article by the chief justices of two US states calling for more of it. Unbundling is a practice where a lawyer signs on for only part of a case in order to save the client costs. It makes sense in a time when clients have less money, and where so much knowledge is available instantly on the internet. What is interesting is that top judges have called for it in a public and vigorous fashion. The American Bar Association already has a model rule which permits limited scope representation ‘if the limitation is reasonable under the circumstances and the client gives informed consent’. There are clearly ethical and insurance consequences which will have to be considered. The judges also call for more ‘self-help Web sites, online assistance programs and court self-help centers’.

‘Cloud computing’ is a way of cutting IT costs substantively. Instead of having your own server and own tailored IT system, you hire it all at a much-reduced price. Do you have your own electricity generator? No, you link into the grid. Well, cloud computing is the equivalent of using someone else’s IT grid for all your IT needs. You don’t own the physical infrastructure, and you pay only for what you use. It goes via the internet, and ‘cloud’ is a poetic way of saying that all your computer needs are stored out there somewhere in the ether. The case for it for law firms is that it saves a good deal of money and IT hassle. The case against is that, particularly for lawyers, the storage of confidential data outside of your own control will raise ethical issues. Some have pointed out that there are significant security problems, too. It is not a minority activity, either, since the following already use cloud computing: Gmail, Twitter and Facebook, and among the customers of Amazon’s cloud computing services are the New York Times and Pfizer. (Speaking of Twitter, you may be interested to read how large US law firms are using it, in an article which also gives detailed guidance to law firms thinking of going down the Twitter route.)

‘Virtual law firms’ appear to be on the rise. Why have an office with high rent when computers allow you to link to co-workers and clients, and work from wherever you want? Obviously, this notion has been around for some time – think home-working – but environmental concerns, the recession and continuing IT developments are now giving a further push towards making the whole firm virtual. It particularly helps lawyers starting up their own firm. Regulators will have to examine whether current codes and disciplinary systems can adequately deal with this new model.

‘Professional networking’ is also on the rise. The legal services category of LinkedIn saw a 400% rise in 2009. Martindale-Hubbell’s Connected is the next most popular. I am not a member of a social networking site, but have noticed how so many more things – meetings, parties, photos – are notified on Facebook only. I am excluded (but by my own decision). What effect will professional networking sites have on legal practice?

I have mentioned environmental concerns only once, but clearly the wish and need to be green will be another powerful force in the future. It is worth noting how much of what I have outlined here tends towards the eco-friendly. It also represents a move away from what is firmly fixed, to a model which allows more mobility and more pick-and-mix by clients and firms: that is the real trend.

We have been obsessed recently with the impact of alternative business structures, but we usually mean by that phrase only ownership by non-lawyers. The recession, technology and green concerns are also pushing us towards other alternative structures, which might make us more profitable in 2010.

Jonathan Goldsmith is the secretary general of the Council of Bars and Law Societies of Europe, which represents more than 700,000 European lawyers through its member bars and law societies