ILNews

New survey outlines how corporate law departments are cutting costs

Back to TopCommentsE-mailPrintBookmark and Share

Chief legal officers have turned to negotiating price reductions with outside counsel, doing more work in house, and greater use of technology in efforts to control costs, according to a survey released Wednesday by legal management consulting firm Altman Weil Inc.

More than three-fourths of chief legal officers have negotiated price reductions from outside counsel, with almost half receiving an average reduction of between 6 and 10 percent. Close to 20 percent negotiated discounts between 11 and 15 percent.

But CLOs don’t just want the most services possible for the least amount of money. The majority of respondents preferred transparent pricing or guaranteed pricing. Only about 10 percent said they wanted the lowest price available.

Many corporate law departments plan on adding more staff in the next year; 42 percent report they plan to add in-house lawyers. Nearly 30 percent also plan on decreasing their use of outside counsel.

But in-house attorneys aren’t immune to the negative effects of the cost-control measures. Respondents plan on shifting in-house work from lawyers to paraprofessionals, using contract lawyers and technology tools to increase efficiency, and outsourcing to non-law firm vendors.

The survey also shows that CLOs have little hope that law firms will change their services to better meet the needs and demands of corporate law departments. For the fifth straight year, the survey asked CLOs to rate how serious law firms are about changing their legal service delivery model to provide greater value – and for the fifth year, the median rating was “3” on a scale of 0 (not at all serious) to 10 (doing everything they can).

Another interesting result from the survey: Two-thirds of respondents think chief legal officers have more difficult jobs as compared to managing partners.

Of the 1,269 corporate law departments invited to participate, 207 responded to the 2013 survey.  Altman Weil has compiled this survey since 2000.

The complete survey is available on Altman Weil’s website.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. For many years this young man was "family" being my cousin's son. Then he decided to ignore my existence and that of my daughter who was very hurt by his actions after growing up admiring, Jason. Glad he is doing well, as for his opinion, if you care so much you wouldn't ignore the feelings of those who cared so much about you for years, Jason.

  2. Good riddance to this dangerous activist judge

  3. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  4. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  5. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

ADVERTISEMENT