With the help of machine learning, some law firms are reinventing themselves as legal services software companies that sell licences rather than advice. Large global accounting and consulting firms are taking some of their services in a similar direction, for instance in the area of regulatory compliance. Some manufacturing firms have expanded into digital services, offering other firms help with supply-chain management, product design and prototyping.

Large companies have regularly hired large law firms and kept them on retainer to address legal needs as they arise. However, with legal expenditure continuing to rise, largely because of higher billing rates, some in-house lawyers are reconsidering how they choose and partner with outside firms. In 2016 partners at elite law firms were charging as much as US$1,500 per hour. Indeed, the 3.6% revenue growth at US law firms achieved in the first nine months of 2017 was entirely driven by rate increases, according to Citi Private Bank’s annual industry report.         

Nuno Teles has a difficult job: getting US consumers to show some brand loyalty. As chief marketing officer of Heineken USA, he depends on using content, in multiple formats and published at a quick pace, to keep digitally savvy, slogan-leery customers engaged. Unlike in the past, when a catchy ad delivered across multiple channels would be enough, marketers today often have to manage a stream of fresh ideas across video, social media and other digital platforms.   Like other marketers, he increasingly has to look beyond an agency of record (AOR) to find external partners with specialised capabilities that can help deliver value to his company. However, finding and vetting these new kinds of partners are significant challenges.   An Economist Intelligence Unit survey of 307 business leaders from the US, UK and Europe that was commissioned by Globality found that the majority of executives that work with external marketing agencies are planning in the next 12 months to replace work previously done by an AOR with smaller agencies and individual contributors. And in the next five years, the surveyed executives are mainly focused on two marketing areas: digital strategy and content marketing.