This document summarizes the key findings of a survey of 100 senior in-house counsel on the state of e-discovery. The survey found that counsel give internal and external e-discovery resources an average effectiveness grade of 6.5 out of 10. Understanding the potential evidence universe early in a case and reducing processing fees were the most important e-discovery management factors. Over half of companies have adopted cloud-based storage and hired outside vendors to improve e-discovery. The average annual e-discovery spending is $10.7 million and over 40% expect spending to increase.

1. WHAT MATTERS MOST TO CORPORATE
COUNSEL IN E-DISCOVERY MANAGEMENT
Presenting the results from BDO’s inaugural
Inside E-Discovery Survey
1

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3. Presenters
3
Stephanie L. Giammarco leads BDO’s Forensic Technology Services
practice with more than 20 years of experience and a background in
accounting, information technology and criminology. Having worked
on some of the largest financial frauds to date, she has led teams
creating databases of millions of records, performed advanced data
analytics and provided testimony pertaining to damages and
electronically stored information.
Ms. Giammarco provides litigation and consulting services to
organizations and their counsel, including data analytics, computer
forensics and e-discovery services related to domestic and
international matters involving product liability, financial statement
fraud, class action lawsuits, internal investigations, securities fraud,
employee and vendor schemes, and breach of contract. She is skilled
in the collection, preservation and analysis of electronic evidence,
as well as the implementation of various e-discovery tools.
She has been deposed as a Rule 30(b)6 e-discovery witness and
testified before the Judicial Arbitration Services on the calculation
of damages in contract disputes. Ms. Giammarco has published and
presented on a range of computer forensics and e-discovery topics,
including before the Securities and Exchange Commission, Security
Industry Authority and National Futures Association.
Steve Buddell is a Senior Manager in the Forensic Technology and E-Discovery
practice of BDO in London. Mr. Buddell draws upon 18
years of experience in the delivery of forensic information
technology (IT) services and solutions to support criminal and civil
investigations in the public and private sectors. He has focused on
engagements requiring solutions to deal with vast volumes of data
and hardcopy material in respect of litigation affecting
multinational organizations.
Mr. Buddell has built, worked with and managed multi-skilled teams
in Europe, Asia and South America to provide forensic technology
and e-discovery solutions to comply with local and international
legal requirements and applicable to the subsequent movement of
data between jurisdictions.
In October 2009, he was awarded the F3 award for Outstanding
Contribution to Forensic Computing in recognition for his activities
in seeking to bring together IT professionals from all areas of the
public and private sectors, in order to share and discuss prevailing
and anticipated tools and techniques used to secure, process,
analyze and produce data for review.
Stephanie L. Giammarco, CPA/CITP, CFE, CEDS
BDO Consulting Partner
sgiammarco@bdo.com
Direct: 212-885-7439
Steve Buddell
BDO Senior Manager
steve.x.buddell@bdo.co.uk
Direct: +44 (0) 20 3219 4016

4. 4
Survey
Background
The methodology
behind the survey

5. About BDO’s Inside E-Discovery Survey
5
Conducted by BTI
Consulting Group
Surveyed 100 Senior
In-House Counsel
Asked About the
State of E-Discovery
Detailed Report
Available

6. 6
Key
Findings
An inside look at the
state of e-discovery

7. Key Findings
7
6.5
Corporate counsel give internal and
external resources a grade of
6.5 out of 10 for overall
effectiveness
E-discovery effectiveness leaves room for improvement.

8. Key Findings
8
15.6%
12.5%
9.4%
14.1%
48.4%
Importance of E-Discovery
Management Factors
Percent of Companies Ranking Factor
Most Important
Understanding Universe of
Potentially Responsive Evidence
Early in the Case
Predicting Total Cost
of E-Discovery Early
in the Case
Reducing E-Discovery
Review Fees
Ability to Utilize Previously
Collected and Processed Data
for Other Matters
Reducing E-Discovery
Processing Fees

9. Key Findings
9
3.8%
11.8%
11.8%
15.7%
25.5%
31.4%
New Guidelines
and Policies
Adopted Tools
and Technologies
Hired Outside Vendor
Analysis of
Current Systems
Added In-house
Resources
Cloud-based Storage
Changes in Managing
E-Discovery
Percent of Respondents

10. Key Findings
10
10.0%
10.0%
12.5%
15.0%
17.5%
22.5%
Managing Mobile and
Social Networking Data
Cost Control
New Regulations
Automating Processes
Developing
In-house Capabilities
Cloud-based Data Storage
Future E-Discovery Issues
Percent of Respondents
Note: Chart does not add up to 100%. Responses
smaller than 10% excluded.

11. Key Findings
11
Early Adopter
5.4%
Mainstream
39.2%
Late Adopter
55.4%
Organization’s Willingness to Adopt New Tools and Technologies
Percent Ranking Company Classification

12. $16M
$12M
12
$10.7M
$1.2M
$8M
$4M
$0M
Litigation E-Discovery
Key Findings
Average Annual Litigation and
E-Discovery Spending
Millions of Dollars
=11% 1.2m
10.7m

13. Key Findings
13
Increase
43.2%
Stay the Same
50.6%
Decrease
6.2%
E-Discovery Spending Expectations
Percent Total of Company Expectation

14. Key Findings
Total Cost
14
Importance of Factors When Hiring E-Discovery Providers
Percent of Respondents Ranking
Factor Most Important
23.8%
47.6%
Quality
Percent of Respondents Ranking Factor
First or Second in Importance
68.3%
68.3%
58.7%
100%
50%
0%
58.7%
Quality Cost
Corporate counsel look for quality at the right cost.

15. Key Findings
15
40
20
0
Time Spent Managing E-Discovery, Per Person
75th Percentile
Time Spent Managing E-Discovery, per Person
Hours per Week
25th Percentile
High
Average
Median
Low
50.0
15
10.9
6.0
2.0

16. Key Findings
16
More Than Half of Companies Designate a Single Individual to Be Accountable for E-Discovery
54.3% of companies
designate a single individual

17. Key Findings
17
44.3%
32.9% 32.9%
27.1%
24.3%
17.1% 17.1%
11.4%
100%
31.4%
7.1%
14.3%
10.0% 11.4%
5.7%
100%
75%
50%
25%
0%
Operations
E-Discovery Issues
Geographic Location of Operations and E-Discovery Issues
Percent of Respondents

18. Key Findings
18
Access
Data Privacy and 11.1%
Security Laws
66.7% Communication
Barriers
11.1%
Coordination
11.1%
Top Challenge for Companies Managing Cross-Border E-Discovery
Percent Ranking Greatest Challenges

19. 19
Global
Considerations
Perspectives on
cross-border e-discovery

20. Global Considerations
Perspectives on cross-border e-discovery
 The 1995 EU Data Protection Directive
 US “Personal Data” differs from EU “Personal Data.”
 US “Processing” differs from EU “Processing.”
 The European Convention on Human Rights 1950 (EHCR)
 Article 8: Right to respect for private and family life.
 The Hague Convention
 Article 23: Prevents discovery of any information sought in relation to
20
foreign proceedings.

21. Global Considerations
Perspectives on cross-border e-discovery
 Navigating data privacy, secrecy legislation and blocking statues
affecting cross-border investigations.
 “Catch 22” - the use of Blocking Statutes:
 Swiss Banking Act – Article 47
 Swiss Penal Code – Article 271
 French Penal Law No. 80-538
 Obtaining consent from the custodian.
21

22. Global Considerations
Perspectives on cross-border e-discovery
 Where is the data and what is needed?
 Understanding the IT infrastructure.
 Securing the data.
 E-Discovery “in a box.”
 Deployment of mobile e-discovery processing capability.
22

23. Global Considerations
Perspectives on cross-border e-discovery
23
One engagement. Many countries. Many languages. Many cultures.

24. 24
Looking
Ahead
Changes on the horizon

25. Q & A
25