Yesterday we saw a survey that showed in-house counsel are becoming more valuable to their companies, which sometimes translates to more money for general counsel. Now another survey shows that companies are spending less money on outside counsel. In fact, negotiating reduced prices with law firms is the number one way legal departments are cutting costs. Guess that money’s got to come from somewhere.
Law firm consultancy Altman Weil conducted a survey of 200 chief legal officers over the past year, and found that 71 percent of companies negotiated with their law firms to get lower rates. But sometimes negotiations aren’t enough, and 41 percent of surveyed companies changed some of their work over to firms that charged less.