Outsourcing is ‘key’ to the survival of many UK law firms, but a lot of them are failing to act, according to a new survey.

The poll of 169 firms showed that 77% believe outsourcing business processes would help them compete against big brands entering the legal services market, but only 52% had outsourced any of their back office functions.

Of those that had done so, the survey found that many had only outsourced minor functions such payroll and typing.

However, firms indicated that they would consider outsourcing other functions in the future, particularly marketing, IT and HR.

The survey was conducted by legal referral network Connect2Law, whose head Charles Layfield said: ‘Outsourcing business functions will be the key to survival for many firms in the new legal landscape and the dynamic ones recognise the huge advantages it offers - mainly reducing their cost base enabling their business to grow.

‘However, there is still reluctance by many lawyers who arrogantly assume they can do everything from IT to marketing.’

He added: ‘Lawyers need to recognise that, while they might be good at the law they are not business people. There are people out there that can do it much better!

‘Law firms have had it good for many years, but times are changing. New entrants are on the horizon and to survive firms need to be more efficient - the solution is outsourcing.’

The firms that took part in the survey were based in the Midlands and north-west and had up to 10 partners.