Even though I work at one of those outside law firms, this has always made total sense to me:
“The survey also found that bringing the e-discovery process in-house is a common and effective way to control spending. Seventy-five percent of the respondents said they are using the technique to control e-discovery costs, and it was given an average score of 4.16 out of 5 in effectiveness.”
If you have the resources available, in both technology and people, it only makes sense to do this yourself. Not only does it cut costs, but it simplifies the process of keeping your data secure. Sending your data out to third parties is never as secure as keeping it all onsite, where you manage access and security around it. Again, if you have the resources, why not keep it all under your control?
Of course, not everyone has the necessary resources, so there will always be some need for outside assistance. You just can’t forgo managing that process as well, to ensure it’s being done in as cost-efficient and secure a way as possible.