UNDER PRESSURE TO curb legal costs, Microsoft Corporation and Hewlett-Packard Company have turned to outsourcing work to India, giving work to solo practitioners rather than megafirms and eschewing hefty hourly fees in favor of alternative and fixed fees.

As a result, both Fortune 500 companies have saved millions of dollars in legal fees. HP shaved 25 percent off its legal budget in four years and Microsoft 4 percent annually in the last few years, according to deputy general counsel for both companies.