E-discovery company H5 recently found that 60% of those involved with internal corporate investigations expect the number of investigations to increase over the next three years, citing increasing regulation, compliance pressures and companies’ growth as the top driving factors. Nearly 30% of those surveyed said their company’s investigation costs topped $1 million, and 17% said the costs were more than $6 million. Those located outside the United States reported that they spend more on investigations, with 21% saying that their company spends $10 million or more, compared to only 2% of U.S. respondents reporting the same spending level.
The top three sources of these expenses were outside counsel (86%), analytics technology (59%) and e-discovery services (53%). Almost half of investigations relate to workplace issues like harassment, theft and discrimination, while regulatory/governmental issues make up an additional 24%. Cybersecurity investigations for issues like data breaches only accounted for 5% of investigations.