General counsel are no longer the only buyers of corporate legal services. As many law firms experience on a regular basis, procurement departments are now often involved in the selection and evaluation of law firms.
Large corporations both in the United States and overseas employ their own legal procurement team and medium-sized companies hire consultants that organize legal procurement consortiums to achieve greater buying power. Procurement’s knowledge of the buying process and expertise in negotiating favorable contracts for the company put law firms under significant pressure. The involvement of procurement is one of the side effects of a power shift to the client since the downturn of the economy. New management approaches in law firms are called for, such as flexibility in regards to fees arrangements as well as project and cost management. The siren song to law firms is get your cost house in order, sharpen your pencil, and come out ready for the new world of legal procurement.
