Managing external legal spend

The following In-house Advisor practice note provides comprehensive and up to date legal information covering:

  • Managing external legal spend
  • The importance of managing legal spend
  • Typical fee structures
  • How to better manage external legal costs

Managing external legal spend

The importance of managing legal spend

It is commonly known that organisations, and in particular, their in-house legal teams are under increasing pressure from their boards to reduce the amount spent with external law firms. To be able to reduce spend, you first need to have a good handle on what has been and is currently being spent.

Managing external legal spend can be, from the perspective of most businesses, one of the most challenging aspects when engaging with external suppliers. In particular, organisations which do not have the benefit of in-house counsel who may be more familiar with the way in which law firms bill clients can often be on the receiving end of large bills they were not anticipating. Even where organisations do have in-house counsel, not all engagement with law firms is necessarily done through the legal department. It is important for you as the in-house legal advisor to have visibility and oversight of the legal spend within your organisation, both in terms of ensuring there is no duplication of instructions across different parts of your organisation to different law firms (or fee earners within the same law firm), and also being able to take advantage of more cost effective fee structures with your suppliers where you notice a pattern of volume or repeat work. See Practice Note: Innovative ways

Related documents:

Popular documents