The financial crisis in 2008 fundamentally changed the working environment for in-house legal teams. The last seven years have already seen a swathe of cost reductions and operational improvements, but the full effect of the crisis is only now being felt by in-house teams and their outside counsel.
In the immediate aftermath of the crisis, legal teams were asked to make 15%-20% cost savings year-on-year. The result was sustained pressure on external legal fees, often accompanied by formal panel management programs and e-billing initiatives. Legal operations teams have been formed to manage these projects, and GCs have increased efforts to make their legal teams demonstrably cost-efficient and value-adding.
