The most effective way for a general counsel to reduce the costs of outside counsel may be to change law firms. Not discounted billing rates or convergence; not electronic billing rules or bill review — simply retain different law firms that look reasonably able to deliver comparable or better quality at lower cost. The dramatic step of moving significant amounts of work to new or not recently used firms can save your budget, but it confronts the incumbents’ advantage.
Your incumbent firms enjoy advantages because 1) they have represented you for several years 2) in multiple matters 3) for significant fees. Those three factors define incumbency: extended time of use, large range of similar services and major amounts of fees. Many people refer to their incumbent firms as their primary firms. Most legal departments larger than five lawyers have only a handful of work-horse, incumbent firms.
