According to a report from Huron Consulting Group, the cuts come from using alternative fee arrangements or using legal service providers other than traditional law firms.
The third major fee saver was consolidated spending with the research finding savings when corporates - which hire 10 or more external law firms - consolidate 80 per cent of their spending to fewer than 20 per cent of firms.
Pre-defined processes
The report found that law departments, which had established pre-defined processes for determining when outside counsel should be utilized or which outside counsel should be utilized realized, on average 42-47 per cent lower external legal spend as a per cent of company revenue than those departments that did not use guidelines.
Around three in four respondents reported having guidelines for when to use outside counsel at least some of time and 81 per cent reported sometimes or always using guidelines for which outside counsel to use.
Email your news and story ideas to: [email protected]
