Legal News

Law Firms Look to Next Year for Higher Legal Spending
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

legal spending

Summary: Legal spending was mostly flat this year with companies finding alternate ways to adjust for their legal needs, but many expect their needs to go up next year.

While HBR Consulting’s 2015 Law Department Survey shows that legal spending is up, that money isn’t going straight into the wallets of law firms. The survey looked at 308 companies in 22 industries compared to 292 companies last year.


The survey showed that total legal spending was up by 2 percent, but outside counsel spending went down compared to last year. The spending inside legal departments only increased 3 percent. The best news was for in-house spending. The increase in total compensation, such as cash bonus, base salary, and long-term incentives was up 3.5 percent.

As the leader of HBR’s Law Department Consulting practice, Kevin Clem, stated, “Departments are prioritizing internal operations, hiring internally, investing in new or upgraded technologies, and raising total compensation for their employees.” Consulting senior director and survey editor at HBR, Lauren Chung, went on to say, “There’s a continued push to manage the costs of outside counsel. Organizations are taking aggressive measures, like the consolidation of firms, use of analytics and use of alternate fee arrangements and detailed budgets, to control for these costs, which is having a direct impact on legal spending.”

When companies responded to the question about their predicted legal needs in the future, 76 percent said, “their legal needs would increase in the next year” with 19 percent answering that their legal needs would stay the same. The areas with the most growth are believed to be in regulatory work and mergers and acquisitions.

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!!




Interesting Legal Sites You May Like




Search Now

Mid-level Litigation Attorney with motions experience


Seattle office of our client seeks mid-level litigation attorney with 3-5 years of experience, inclu...

Apply Now

Environmental /Land Use Attorney with 2-3 years of experience

USA-CA-San Francisco

San Francisco office of our client seeks environmental /land use attorney with 2-3 years of experien...

Apply Now

Litigation Attorney with 2-5 years of insurance defense experience


Jacksonville office of our client seeks litigation attorney with 2-5 years of previous insurance def...

Apply Now

Tax Associate with Real Estate / Capital Markets Experience


Chicago office is seeking a tax attorney with 3-5 years of experience. Significant experience in rea...

Apply Now




Boutique East Bay litigation defense firm is seeking a junior to mid-level attorney. Candidates for ...

Apply now

Managing Director, Litigation Finance Investments


Title                ...

Apply now

Contract Associate


Seeking lawyer with at least 2 yrs experience in complex real estate transactional matters, with wil...

Apply now

Senior Associate Attorney


We are a boutique-sized law firm (6 attys) seeking a self-motivated litigation senior associate from...

Apply now

Most Popular


To Top