Madrid annual report
Firms must use technology and adapt their business
models to meet clients’ changing demands
Law firms striving to meet the increasingly sophisticated demands of clients will benefit by
incorporating new technology into their internal processes
Law firms have to adapt their business
models – partly through the adoption of
new technology – in order to meet the
changing demands of clients, says Rosa
Vidal, managing partner of Broseta.
“Although traditional advisory services
are still in demand, lawyers have the
imminent challenge of adapting to a new
type of client,” says Vidal. She adds that
the new clients demand “more agile advice
that provides immediate solutions and
generates measurable value”.
Consequently, law firms must amend
their business models accordingly, with
a focus on efficiency and profitability.
Vidal says one approach firms can take
is dedicating “professional resources
to what really contributes value and
dispense with more routine tasks that can
to be carried out in a more indirect and
automated way”. She adds: “This means
selecting those jobs that are truly profitable
and sustainable for the organisation,
emphasising quality over quantity.”
In this context, digitalisation is key.
Firms striving to meet the increasingly
sophisticated demands of clients will benefit
by incorporating new technology into their
internal processes. Vidal says: “Technology
and digitalisation are taking law firms to
the point of no return. The goal, based
on the maximisation of efficiency, is the
profitability and sustainability of the firm.”
For those firms that overcome such
challenges, the Madrid market offers
a number of significant opportunities.
According to Vidal, having established
itself as “one of the most competitive
markets, all kinds of companies, law firms,
funds and individuals – both national and
international – are establishing operations in
the city”.
The s ectors experiencing the most
significant levels of activity include tourism,
real estate, fashion and automotive. Vidal
also highlights an increase in public works
and continued interest from foreign
investors, as being among the factors
underpinning Madrid’s competitiveness.
“These factors are reinforcing the growth
forecasts as well as the position of the
Madrid legal market,” she says.
Rosa Vidal
Investors turn attention to Madrid amid uncertainty
caused by Brexit and Catalonian independence push
Political uncertainty caused by Brexit
and the crisis in Catalonia has resulted
in an increase in investment in Madrid,
according to Alberto Ruiz-Gallardón,
senior partner of the Madrid-based
firm Ruiz Gallardón Abogados. “Brexit
has meant not so much a relocation of
corporate headquarters from London to
Madrid, but it has led to multinationals
entrusting their representatives in
Madrid with the task of refocusing their
activity in Europe and Latin America,
a role that was previously reserved for
London.”
Meanwhile, the Catalonian
independence movement has led to
companies shifting their focus to Madrid.
“The second factor, although regrettable,
is the situation of political uncertainty
in Catalonia,” says Ruiz-Gallardón,
formerly the Spanish Minister of Justice
and mayor of Madrid between 2003 and
2011. “There are many companies that
are moving not only their headquarters
www.iberianlawyer.com
but also their operations to Madrid,” he
adds. “This has no doubt resulted in an
increased workload for law firms.”
The improving fortunes of Madrid and
its legal market is not purely attributable
to politics. A recovering real estate market
has meant an increase in appetite for
investment in the city’s infrastructure.
“This has triggered a number of
significant transactions that before had
been dormant, such as the so-called
‘Operación Chamartín’ and the Barajas
airport expansion project, which should
bring about extraordinary economic
activity during the next 20 years,” Ruiz-
Gallardón says. The question for law
firms is how they make the most of the
improving market conditions. “As a result
of the crisis, some firms had to reduce
their number of associates,” he says.
“Now we must remain vigilant to ensure
that new business opportunities do not
generate a bubble that forces the market to
do the same in a few years.”
Alberto Ruiz-Gallardón
May / June 2018 • IBERIAN LAWYER • 45