Why eBilling Tools Alone Aren’t Enough: Rethinking Legal Vendor Management for Modern Legal Departments
Legal Operations Is Evolving
Legal departments are now expected to manage far more than invoices. They oversee law firm relationships, monitor contractual terms, compliance with billing guidelines, manage conflicts and waivers, evaluate cybersecurity readiness, and align spend to increasingly complex internal cost structures. While eBilling systems remain essential, their traditional billing-centric design limits their usefulness in this broader operational landscape.
To meet modern needs, legal departments must think beyond eBilling and begin building toward a comprehensive vendor management approach that addresses the structural and risk realities of today’s legal ecosystem.
1. The Overlooked Challenge: Global Law Firm Structures
A critical yet underappreciated complexity in vendor management stems from the way many large global law firms are structured. Many multinational firms operate as a federation of legally distinct entities across jurisdictions. This creates several practical issues:
- Timekeeper Affiliation vs. Engagement Entity: The individual performing work may reside in one jurisdiction but bill through another. Without careful configuration, legal departments can lose track of who is doing the work and whether they’re covered under the right contract terms or security reviews.
- Office vs. Legal Entity Confusion: Firms may use a single global brand, but operate under different legal entities with separate tax IDs, insurance policies, and regulatory obligations. Many eBilling vendors and their systems do not distinguish clearly between office, legal entity, and brand, making it difficult to enforce entity-specific terms or route payments correctly.
- Security and Risk Fragmentation: A firm may have global information security policies that apply unevenly across its entities. If a firm’s U.S. entity has strong controls but its APAC offices do not, legal departments need the ability to assess and manage those differences, but few systems provide that level of granularity.
Managing these structural variations requires both clear data and intentional design. Most eBilling systems can capture timekeeper office or location, but that does not equate to a meaningful understanding of how that maps to the correct billing entity or contractual relationship.
2. Contractual Complexity Beyond Rates
Modern engagements with outside counsel often involve detailed contractual terms, including:
- Alternative fee arrangements and performance-based incentives
- Jurisdiction-specific provisions
- Scope of work restrictions tied to business units or matter types
- Conflict Management
- Data Privacy
eBilling platforms often reduce these agreements to rate tables or basic metadata fields. While these systems can handle simple billing logic, they generally do not provide a mechanism to store or enforce contractual commitments in a way that reflects operational reality. As a result, many legal departments manage this complexity offline, which increases the risk of error and weakens enforcement.
To learn how Swiftwater helps legal departments optimize beyond rate tables, visit our Legal Spend Transformation page.
3. Security and Risk Management Remain External
As legal vendors become increasingly integrated into corporate data ecosystems, cybersecurity expectations have grown. Legal departments are often tasked with:
- Conducting or supporting entity-specific security assessments
- Monitoring ongoing compliance and remediation
- Ensuring access controls are aligned with matter sensitivity
Most eBilling systems do not include native functionality to track these risk and compliance details. Even mature departments continue to manage this work in spreadsheets or third-party platforms, making it difficult to link a firm’s risk profile to actual matter types, data access, or spend levels.
4. Internal Complexity: Multiple Billing Entities and Cost Centers
Many global corporations operate through a matrix of internal billing entities, each with their own cost centers, legal obligations, and approval workflows. Leading eBilling platforms can support this structure but doing so successfully requires:
- Detailed upfront configuration aligned with internal finance policies
- Ongoing data hygiene to maintain vendor-matter-entity mappings
- Support for split billing, shared cost tracking, and local regulatory compliance
In practice, many legal departments find these features underutilized, not because the platforms lack them, but because implementation was not optimized or organizational data structures were not ready to support them.
5. Fragmentation: The Status Quo in Most Legal Departments
Even with strong intentions, most legal departments manage their vendor ecosystem across a patchwork of tools:
- eBilling for invoice review
- Spreadsheets for tracking exceptions and security status
- Contract repositories or CLM platforms for engagement letters
- Separate risk systems for cybersecurity oversight
This fragmentation results in duplicated effort, inconsistent enforcement, and limited visibility. It also undermines the ability to assess vendor performance holistically across financial, operational, and risk dimensions.
6. A Path Forward: Integrated Legal Vendor Management
Legal departments are increasingly recognizing that eBilling alone cannot serve as the system of record for vendor oversight. Many are now:
- Consolidating contract, billing, and risk data into unified dashboards
- Expanding the use of legal ops tools to manage non-financial vendor information
- Designing operational models that support integrated vendor governance across legal, finance, and compliance
The goal is not to replace eBilling, but to elevate it from a transactional tool to a strategic component of a broader vendor management framework.
Check out our latest case study on Integrated Vendor Oversight.
eBilling Is Foundational, Not Comprehensive
eBilling platforms are a critical part of legal operations infrastructure. With proper configuration, they can support many aspects of a complex legal environment, including multi-entity billing and advanced fee structures.
But they cannot operate in isolation. To truly manage today’s law firm and legal vendor ecosystem, legal departments must invest in systems and processes that also address entity structure, contract obligations, cybersecurity risks, and internal accountability.
That shift is already underway in many mature departments and those that move proactively will be best positioned to drive efficiency, enforce standards, and mitigate risk in a rapidly changing legal landscape.

Swiftwater & Company offers top-notch Business and Management Consulting services, with a team of experienced experts dedicated to helping businesses achieve their goals. We work closely with each client, providing customized solutions that drive results.
Important Pages
© 2023-2024 Swiftwater and Company. All Rights Reserved.