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From billable hours to value-based pricing: Why legal departments will move to ALSPs in 2026

First Reviewed : January 8, 2026
Last Reviewed: January 8, 2026

Imagine this. Your in-house team is stretched thin, discovery or NDA volume is spiking, and you hire outside counsel to help. The work gets done, but the bill is steep and the final number is a mystery until it lands on your desk. Then, a peer tells you they moved the same workload to an Alternate Legal Service Provider for fixed fees, faster turnaround, and no surprises.

That’s the moment many legal leaders are having right now, because the pressure on hourly billing is piling up, boards want ROI, and legal teams want value and predictability.

The data spells it out.

Why companies are ditching billable hours

Hourly billing vs Value-based / Fixed fee

Hourly still dominates about 90 percent of external legal spend today (TR Legal Ops Index 2025). But fixed-fee use has doubled since 2007, and the adoption curve is bending upward.

Where ALSPs fit into the new legal delivery model

Companies don’t just want cheaper legal work but smarter allocation.

Who should do what?

This visual makes it clear: ALSPs don’t replace legal teams; they straighten the pipeline.

The ALSP market boom

More than 57 percent of corporate legal departments now use ALSPs for at least one major workstream (LawNext, 2025). That’s no longer a fringe choice — it’s mainstream procurement.

Why ALSPs are becoming the default safety valve for legal workload

  • Lower, predictable cost
  • Faster turnaround
  • Standardized workflows
  • Scalability without headcount
  • Access to tech-enabled delivery

The shift coming in 2026

All signs point in one direction: 2026 might just become the year where predictability overtakes prestige in legal procurement.

The Road to 2026

LegalEase’s edge in a fixed-fee future

Three pillars:

The Compliance Head for a Fortune 1000 investment bank summarizes the LegalEase edge aptly:

“The partnership with LegalEase is a delight for us. I have tried outsourcing in the past with little success, but the relationship with LegalEase should be a role model and standard on how good outsourcing works.”

Clients can do more than just cut cost. They eliminate volatility as LegalEase turns legal support into a stable, forecastable operating line that runs like a steady partnership.

The second quarter of this century is bound to make value, not hours, the true currency of legal services, and LegalEase is built for exactly that future

Let’s talk about how value-based pricing can change the game for your Legal

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