This column considers two common benchmarks and the statistical correlation between them: what legal departments spend internally divided by their number of lawyers and what they spend on outside counsel and other vendors, again divided by their number of lawyers. Typical figures for U.S. law departments come in at about $450,000 per lawyer inside and $600,000 per lawyer outside.
Data from the General Counsel Metrics LLC study of global benchmarks lets us calculate the correlation between the two figures. In other words, when inside spend rises does outside spend also rise (both figures normalized per lawyer)? By how much?