Stay current on changes and developments in corporate law with a wide variety of resources and tools.
Sept. 16 — In line with a three-year trend, large companies continue to move legal spending in-house, according to an early study of 2014-15 spending by the BTI Consulting Group.
According to a Sept. 15 BTI blog post, announcing the results of survey research conducted between March and September, “[l]arger companies, with $1 billion or more in revenue, are on track to move another $1.1 billion in legal spending in-house.” This is in addition to the $5.8 billion moved in-house in 2013.
Moreover, 58 percent of surveyed companies report a shift of resources in-house—up from 50 percent of companies in 2013—a move that shows that “in-house spending appears to be the new growth market” and that the in-house shift is a “pervasive trend rather than an idle experiment.”
BTI surveyed more than 300 chief legal officers and general counsel at Fortune 1000 companies and large organizations. The full results of BTI's analysis will be released in October. President Michael Rynowecer said this is the 14th year BTI has conducted the study.
Among the most prevalent areas of legal work that companies are moving in-house are: regulatory, M&A, securities, corporate governance, intellectual property and contracts.
The recent trend of shifting work in-house during the last three years may stem in part from the fact that “[v]alue conscious General Counsel have increasing access to high quality talent—mostly due to today's job market where many law firm partners make the jump to in-house counsel,” according to BTI.
“Bringing this talent in-house is seen as higher value and more cost effective than using outside counsel,” BTI stated.
Rynowecer told Bloomberg BNA this trend dates back to 2009, when many large law firms let partners go as part of consolidation efforts. Moreover, in-house jobs have become more attractive as the role has “changed over the years” to “become a larger role, and the salaries have become competitive with the law firms.”
According to the report, there are three approaches law firms can take to secure their positions on their client's core roster: (1) train in-house resources in routine tasks, such as case evaluations; (2) “facilitat[e] knowledge transfer by granting clients access to research tools and other support systems not typically found in the corporate legal department” and (3) create long-term staff assignments “to fill missing talent gaps.”
Based in Wellesley, Massachusetts, BTI conducts independent research on how clients acquire, manage and evaluate their professional service providers.
To contact the reporter on this story: Michael Greene in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan Tuck at email@example.com
A link to the BTI report is available at http://www.btibuzz.com/buzz/2014/9/15/corporate-counsel-shift-another-11-billion-in-house.html.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)