General counsel all over the world are steeling themselves for what seemingly has become an annual rite at the beginning of every year: the announcement of law firm billing rate increases. We know they are coming and believe they will be substantial. At the outset of the fall recruiting season, law firms announced hefty increases in starting salaries for entering associates. We also saw legal publications boast record utilization rates, margins and profits-per-partner for the major firms. The rate increases cannot be far behind.
As general counsel, we are all under constant pressure to control costs, while maintaining and improving the quality of the legal services we deliver. Doing so during a time of major profit growth by our outside counsel is quite a challenge.
