In-house Counsel

Law Firms Competing Against Their Own Clients
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Law Firms Competing Against Their Own Clients

Summary: As many corporations send legal work to their in-house legal departments, law firms suffer from the lack of income this work brought to them.

The Wall Street Journal reports that many law firms are now facing competition from their own clients. Due to many companies cutting back on the use of outside firms and instead hiring contract attorneys for midlevel deals or contracts, law firms are losing money. Apparently, corporations will shift an estimated $1.1 billion to their internal budgets this year, as opposed to spending the same amount on outside counsel. This practice began during the recession and peaked during 2012, when approximately $5.8 billion was redirected to in-house departments in corporations.

  
What
Where


In 2013, 50% of larger companies sent legal work in-house, which will increase to 58% this year. Most general counsel hail the practice as being less expensive and more efficient.

Many large firms that offer highly specialized services have not yet been affected by the shift. Since the services they offer are so unique, it would be difficult for corporations to send these complex tasks in-house. However, smaller firms have been hit hard in some areas.

McGuire, Woods & Bissette, P.A., located in Asheville, North Carolina, used to offer real estate transactions and contractual work to its associates. However, now that banks and corporate clients are sending those jobs in-house, the associates are not getting the same practice in these areas of law. Some of the tasks are even being sent to paralegals instead.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Thomas Grella, a partner at the firm, said, “There is less money to pay everybody.” He added that “it’s harder to find work for our younger lawyers.”

BTI Consulting Group Inc., which conducted the data analysis, interviewed over 300 corporate counsels and estimated that companies and financial institutions will spend over $101 billion on legal services this year. However, less of this work will be performed by actual law firms. Corporate counsel spent around $40.9 billion on internal lawyers this year, which was a 22% increase since 2011.



In addition, roughly two-thirds of chief legal officers reported that they “in-source” work that used to be sent out to private law firms. Nearly one-third of these officers predicted a decrease in the overall use of outside counsel over the next year.

Photo credit: romaboots.org

Interest in working in-house? Get latest in-house legal jobs only on lawcrossing.com



 

RELEVANT JOBS

Senior Criminal Defense Trial Attorney

USA-GA-Atlanta

Criminal Defense Litigation Attorney We are seeking a Criminal Defense Litigation Attorney to joi...

Apply now

Paralegal (prefer unlawful detainer experience

USA-CA-Oakland

Oakland based law office has an opening for a Paralegal or a Unlawful Detainer Paralegal. This is...

Apply now

Litigation Legal Assistant

USA-GA-Dunwoody

Mozley, Finlayson & Loggins LLP is seeking a Litigation Legal Assistant to support the insurance def...

Apply now

Litigation Paralegal

USA-OR-Portland

Lindsay Hart, LLP, one of Portland\'s oldest law firms, is looking for a litigation paralegal with s...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Associate Attorney

USA-CA-San Jose

San Jose office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 3-7 years...

Apply Now

Associate Attorney with 2+ years of litigation experience

USA-CA-San Jose

San Jose office of a BCG Attorney Search Top Ranked Law Firm seeks an associate attorney with 2+ yea...

Apply Now

Lateral Employment Law Attorney

USA-CA-San Jose

San Jose office of a BCG Attorney Search Top Ranked Law Firm seeks lateral employment law attorney w...

Apply Now

SEARCH IN ARCHIVE

To Top