Law firms across the pond are lowering their expectations when it comes to the income they’ll see in 2013.
According to Deloitte’s Quarterly Legal Sector Survey, the 100 top U.K. firms have lowered their growth projections for the 2013 fiscal year from 5.7 percent to 3.3 percent. The firms had originally predicted 5.7 percent growth at the onset of the fiscal year. The revised projections come after top U.K. firms saw modest income growth throughout 2012 and a 3.5 percent gain for the third quarter ending Jan. 31 compared to the same period last year.
“Law firms are right to be cautious as the domestic market remains fiercely competitive whilst pressure on rates persists,” Jeremy Black, partner at Deloitte’s professional services practice, said in a press release. “Unfortunately, this has led to the sector forecasting annual income fee rises that are barely above inflation. With challenging economic conditions expected to continue, it has been necessary for firms to reconsider what margins can be achieved.”
Black also told Thomson Reuters that the survey results are prompting the U.K.’s top firms to re-examine their staffing and business models, including how they provide and deliver services to clients.
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