The economic slump in Asia, contributed to by country-specific issues but also following the overall slowdown in the global economy and the impact of geo-political tensions, has been significant. Most recently the economies of many places in the region were further damaged by the outbreak of Sars (or atypical pneumonia).
Given that many of their clients are feeling the effects of the downturn, it is little wonder that law firms are as well.
What does this mean for such firms? For those that have a broad range of practices, opportunities as well as challenges. Litigation, insolvency and restructuring are obvious areas that benefit. In others, such as project finance, more concentration of work on existing long-term projects as new projects are delayed. In capital markets and corporate, there is generally a more uneven work flow. Across the board, clients are more cost-conscious, although in Asia, the pricing of legal services has always been an important feature of the ongoing dialogue between clients and their law firms.
