Even before the economic crash, law departments were looking at ways to do more with less, as general counsel faced increasing pressure to reduce costs and achieve a predictable legal spend.However, the financial meltdown has led to more radical change in the relationship between in-house and outside counsel.
Many law departments faced budget cuts of up to 20% in 2009; and the push to save has continued. GCs are actively exploring new, more cost-effective ways to obtain the services they need: examples include alternative fee arrangements with outside counsel, growing in-house staff as an alternative to using law firms, leveraging technological solutions, and legal process outsourcing (LPO). This drive to save affects outside counsel acutely, and more forward-thinking firms are responding with their own initiatives to provide better value for their corporate clients.
