In-house legal increasingly shifting to alternative fee arrangements

13.4 percent of large law firms’ revenue expected to come from alternative arrangements in 2012

The writing has been on the wall for years, so it will come as no shock that corporate legal departments have increasingly been moving toward alternative fee arrangements with their outside counsel. In fact, according to a recent report by the Association of Corporate Counsel, in-house legal teams are getting tougher with their outside counsel in a number of matters, including demanding alternative fee arrangements, cutting outside counsel spend, increasing hiring and taking on more work in-house.

Last Sunday, the Wall Street Journal explored the trend further, reporting that the spread of flat fees and alternative fee arrangements continues to be on the rise. Citing a Citi Private Bank survey of managing partners at 40 large U.S. law firms, the Journal reported that 13.4 percent of the firms’ revenue will come from alternative arrangements in 2012—a figure that’s nearly double what it was in 2008.

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