Practical Tech Strategies for Managing eDiscovery on a Budget

eDiscovery can make your bank account feel like a blackhole. Make the wrong move and your expenses will skyrocket. However, it doesn’t have to be this way. 

Managing eDiscovery costs has become a hot topic for legal teams everywhere. In fact, the eDiscovery market is expected to hit over $15 billion in 2025, and projections show it could grow past $22 billion within the next five years.

With the right strategy and IT solutions, consider them your behind-the-scenes digital security team because they can bring your costs down and keep your operations smooth without going over budget. 

With the size of data growing exponentially and regulations tightening up more and more, eDiscovery is no longer something you can simply figure out. If you have a business handling sensitive material—whether you run a law firm, bank, or healthcare center—a smooth, cost-effective eDiscovery strategy is of critical significance.

Why do eDiscovery Costs Get Out of Hand?

eDiscovery is included in most company lawsuits these days, and the increasing expense of pretrial work is primarily the result of eDiscovery. Document review alone takes up nearly two-thirds of these costs. Data processing and collection make up much of the rest. When you add it all up, it’s clear that controlling eDiscovery costs isn’t a luxury—it’s a must.

So where exactly do these costs come from? They fall into three big buckets:

• Hard Costs: This includes vendor fees and outside counsel charges. Most pricing models base costs on the amount of data processed, so more data means more dollars. Over-collecting data without a clear plan can quickly inflate your bills.
  
• Team Time: The hours your staff spends on eDiscovery tasks add up. Manual processes—like tracking legal holds, following up with custodians, and reviewing documents—eat into your team’s productivity and budget. Don’t overlook the IT resources dedicated to preserving and collecting data either.
  
• Operational Costs: Beyond the obvious fees and labor, operational costs come into play. Think about the need to hire or reallocate staff, invest in training, and maintain documentation for compliance and data governance. These can quietly raise your total expenses.

And then there’s risk. You cannot achieve deadlines, mismanage data, and even fail to comply with regulations, which can result in severe penalties.

How to Account for eDiscovery Costs

Before you start controlling costs, you must understand where they’re coming from. Here are the different ways to look at this:

• The Linear Approach: Break down expenses stage-by-stage, tracking costs as a case progresses. This helps highlight where the biggest expenditures happen.
  
• The Holistic Approach: Consider every piece of the puzzle—staffing, IT infrastructure, legal fees, vendor costs—to get the full picture.
  
• The Directional Approach: Separate internal costs (your own team and resources) from external costs (vendors and outside counsel) to see where money is flowing.

The best results come from blending all three approaches, giving you a clear, actionable view of your eDiscovery spending.

Technology: Your Best Ally in Cost Control

Technology gives you some of the biggest opportunities to save. Advanced eDiscovery platforms provide robust tools that not only minimize the volume of documents to review but also optimize workflow and enhance accuracy.

Technology-Assisted Review (TAR) is a game changer. Instead of manually sifting through mountains of data, TAR uses advanced algorithms to highlight what’s truly relevant, shrinking your review pool and saving time and money.

Data analytics tools go further. They provide insights through email thread tracking, keyword searches, and content analysis, helping teams focus on key information and avoid wasting effort on irrelevant documents.

Automation can help too. Legal hold management software automates the process of sending, tracking, and enforcing legal holds, reducing the burden on your team. Automated data preservation tools ensure information is captured efficiently and compliantly, cutting down on costly errors.

Also, don’t forget cybersecurity. Keeping sensitive information safe from intrusions is not only about being compliant, but it’s also about staying away from financial losses that come with hacks or leaks. Always choose platforms and vendors with strong security measures built in.

Four Practical Tips to Manage eDiscovery Costs on a Budget

Ready for some actionable advice? Here are four practical strategies that can make a real difference:

1. Be Selective with Data Collection
   It’s tempting to gather everything “just in case,” but that strategy can backfire fast. Set strict criteria for what data is truly necessary. The less you collect, the less you pay for processing and review. Think quality over quantity.
   
2. Encourage Teamwork Between IT and Legal
   Silos cost money. When your IT and legal teams collaborate well, they can detect risk earlier, automate data gathering, and keep everyone on the same track. This collaboration eliminates duplicated work and minimizes expensive delays.
3. Be Proactive with Policies and Training
   Waiting until there is a legal problem typically costs more. Stay proactive by updating your compliance policies regularly, educating employees on the best practices of managing data, and applying predictive coding technologies to predict what you will need for discovery.
   
4. Use Technology to Track and Predict Costs
   Budgeting does not only mean tracking your expenses—it’s identifying trends and solving problems beforehand. With the proper eDiscovery project management solution, you can receive real-time expense and progress reports to ensure you stay on track and do not get surprised

Transform eDiscovery from Cost Center to Asset

eDiscovery doesn’t have to break the bank. Even though you will have volumes of data and regulatory requirements that will create challenges, being knowledgeable and tech-savvy can tame down your costs.. With insight into where your money is being spent, the right technology, and collaboration, you can transform eDiscovery into a smooth, streamlined business operation.

If the process is overwhelming, remember that you are not alone in this.

If you find the process overwhelming, remember—you don’t have to do it alone. Partnering with Digital Crisis gives you smart, budget-friendly control over eDiscovery. From tool setup to compliance support, they help manage data efficiently. Get in touch with us today so your legal and IT teams can focus on winning cases and protecting your business, not fighting tech headaches.