Managing the Rising Cost of Legal Practice Management Technology

The cost of legal technology has been creeping upwards for years, but many firms are now finding themselves facing sudden, steep uplifts in their monthly licensing fees.

For smaller and mid-sized practices especially, this can feel like being caught between a rock and a hard place — either absorb the increases or risk disruption to business-critical systems.

The good news? Firms often have more options than they think, and we often find ourselves helping and advising practices who have had a nasty fright at renewal time and are looking for a way forward.

We have summarised this advice into the following information that may be helpful if this happens to you;

Know Your Contract

One of the most effective tools against unexpected price hikes is your contract. Many agreements simply don’t contain provisions that allow for unilateral price uplifts. Vendors may attempt to justify increases with various arguments, but unless the contract explicitly provides for them, firms are within their rights to continue paying at the agreed rate.

Often, standing firm and pointing back to the contract terms can be enough to push back against unjustified charges.

Beware of Last-Minute Notifications

A common tactic across the software industry is to notify clients of significant uplifts very close to contract expiry. This leaves firms feeling they have no time to properly consider alternatives. The result? Many reluctantly re-sign for another lengthy term under less favourable conditions.

To avoid being pressured into this situation, it’s critical to set reminders well ahead of your renewal date. Start evaluating your options 6–9 months in advance — whether that’s negotiating with your current vendor, exploring competitors, or planning a potential migration.

Don’t be Intimidated by Threats

Some providers may suggest that non-renewal could mean losing access to your system or even your data. While this can sound alarming, it’s important to remember that your data belongs to your firm. Attempting to block access to it would expose a vendor to significant legal and reputational risk.

Still, extracting data can be deliberately made difficult. Vendors sometimes limit bulk downloads or output files in awkward formats, which adds to the stress of transitioning. For this reason, planning ahead is essential. Make sure you leave enough time to manage a migration without panic.

Practical Strategies to Buy Time

If you’re under pressure and not ready to commit to a long-term renewal, one tactic is to request a shorter-term or rolling monthly contract while you “evaluate your options.” Vendors often resist initially but may accept if they sense a credible risk of losing your business.

Delaying tactics — such as referencing that key decision-makers are unavailable or that other priorities are taking precedence — can help buy breathing space until your firm is ready to decide.

Should you Change Suppliers?

Suppliers that impose steep uplifts at contract renewal rarely treat these as one-off events. If you choose to stay, it’s reasonable to expect the same battle every renewal cycle. This not only creates ongoing tension but also undermines the relationship with a supplier who should be a trusted partner in supporting your firm’s operations — not treating it as a revenue opportunity to be exploited.

Planning a Move to a New Supplier

Switching legal software is rarely convenient, but it doesn’t have to be chaotic. For firms with less complex workflow requirements, a system migration can sometimes be completed in as little as six weeks, however, three months is a more comfortable timeline. Phased implementations — going live with essentials first, then layering in workflows and integrations — can also ease the transition.

If you do decide to move, aim to complete your migration a few months before your old contract expires. This way, when the vendor ramps up pressure tactics near the end of the term, your firm is already settled on the new system. Often the new supplier will take this double cost into account in your initial period.

Look for Contracted Pricing Commitments

A more customer focused vendor (take a look at Yao Technology), will offer long term or lifetime pricing commitments to keep future price rises within acceptable or inflation linked

guardrails, not only does this identify a vendor as customer focused and fair minded, but it will also allow your business to budget accurately for your IT spend well into the future.

Take Control

The rising cost of legal technology is a reality, but firms don’t need to be passive recipients of sudden and unfair uplifts. By knowing your contract, starting the renewal process early, pushing back on unjustified charges, and planning migrations with sufficient time, you can keep control of both costs and continuity.

The key is not to wait until the pressure is on. The earlier you act, the more choices you’ll have — and the less leverage your vendor will hold over you.