The rising costs of outside counsel and the increasing pressure on legal teams to improve efficiency are driving a trend towards insourcing legal work, according to a report by the Thomson Reuters Institute. Nearly 70% of general counsels (GCs) are planning to bring their legal work in-house in order to reduce outside counsel spending.
This shift is being reflected in the Association of Corporate Counsel’s (ACC) “2024 Chief Legal Officers Survey,” which revealed that nearly 60% of law departments have experienced significant rate increases from their outside law firms, while over 40% have been directed to reduce legal costs. In response to these challenges, 40% of Chief Legal Officers (CLOs) identified operational efficiency as their law department’s top strategic priority for the coming year, with a focus on the “right sourcing” of legal services. Additionally, 45% of CLOs expressed intentions to invest in new legal technology to enhance overall departmental efficiency.
By investing in technology and reevaluating the use of outside legal services, GCs and CLOs are looking to better manage their legal spend and resources in order to meet the demands of their organizations. This trend is expected to continue as organizations seek ways to control costs and improve operational efficiency within their legal departments.
