"One area in which we expect to see continued growth in the near future is FDI, with a corresponding (continuing) positive impact on the real estate, business environment, legal and general services sectors but also a negative impact on the cost of living," Kyriacos Scordis, Managing Partner, Scordis, Papapetrou & Co LLC suggests.
In a recent interview with GOLD magazine, he continues, "This is perhaps the biggest challenge facing the services sector at the moment, as a major component of its costs is labour and is thus cost-of-living/inflation-related."
Among other things, Scordis also talks about evolving client expectations and the changing legal lanscape, while also sharing the firm's approach to new technology.
Evolving client expectations, disruptive technology and growing competition are forcing law firms to rethink the way they deliver legal services. How is your firm adapting to this new reality?
While we are one of the oldest law firms in Cyprus, we are young at heart, a tradition inherited from our founders who always tried to stay ahead of the curve by investing in people and technology. We continue to do the same, devoting significant resources (manpower and funding) to continuously testing, improving and upgrading our systems and adopting or adapting new and existing technologies and processes.
We are not afraid of replacing equipment or suppliers if we consider it (or they) do not meet our standards or expectations. At the same time, we are careful to avoid experiments or take shortcuts to save money by using untested, unsecure or unreliable technologies.
The same applies to our people – we welcome new recruits, offer incentives and support them during their career. Indicative of this is the admission of five partners in 2024 and the fact that, despite the very challenging last two years for the sector, we have maintained a similar level of operations and expanded into new sectors and markets.
How have client priorities evolved and, looking ahead, which areas do you expect to demonstrate the most rapid growth?
Client priorities have not really changed – our clients still expect high quality and constructive support. What has changed is the speed and method of delivery. We have also seen an expansion of the legal market, both in terms of clients and entrants. That, in turn, has created pricing pressures but, more importantly, it has eroded the quality of services offered overall due to a lack of expertise, experience or qualifications.
One area in which we expect to see continued growth in the near future is FDI, with a corresponding (continuing) positive impact on the real estate, business environment, legal and general services sectors but also a negative impact on the cost of living. This is perhaps the biggest challenge facing the services sector at the moment, as a major component of its costs is labour and is thus cost-of-living/inflation-related.
The local legal profession is facing internal headwinds, from the stalled e-Justice system to the uncertainty surrounding the proposed Single Supervisory Authority. In your view, what are the most pressing challenges that need to be addressed?
The SSA is not the solution and it will be a step backwards, adding to the burden on already highly regulated professionals while allowing others to continue unfazed. Enforcement of regulations and a level playing field are more important. There is far too much attention being given to a few firms or sectors, when the vast majority of the issues are staring us in the face.
Similarly, the Court rules need practical solutions, while at the same time preserving justice and fairness. We have created a complex system for simple cases and layer upon layer of courts and processes. While it is useful for certain types of cases, simplification and speed are the key to resolving the majority of the cases that are also creating a backlog. This core issue has not been addressed properly; more thought needs to be put into it and action must be taken.
Neither of the above issues can be dealt with in a few sentences though; they require discussions with and among all the relevant bodies.
How are international geopolitical tensions, trade-related uncertainty and other problems shaping the business and investment landscape in Cyprus?
The ongoing war in Ukraine, the Israel-Palestine conflict and the increase in geopolitical tensions in general present a risk to the Cyprus economy.
However, it is worth noting that, so far, these tensions have not dramatically affected the overall business and investment landscape in Cyprus. The negative impact has been limited to certain sectors (including legal services).
The solution lies in finding new markets, expanding on the products/services offered and streamlining processes, something that we are currently doing ourselves.
Finally, which aspect of the legal industry do you expect to be most disrupted by technology over the next five years and how are you preparing for it?
Competition from low-quality services backed by AI is a major concern. While Generative AI may be useful in drafting commercial contracts and other legal documentation, as well as document review and legal research, it takes a competent and experienced lawyer to properly draft a document or assess a legal issue. We have already seen examples of seemingly competently presented documents that are inherently (and fundamentally), flawed.
Thus, with the temptation of the increased efficiency and cost savings offered by technology, its proper use requires training and proper tools (and checks) to avoid making mistakes. Our approach is to invest in the technology and also in training to ensure that proper and effective use, compliant with the standards that we and our clients expect.
This interview first appeared in the August edition of GOLD magazine. Click here to view it.
