Legal Departments Consider Taking Work In-house Again

First Reviewed : November 9, 2023
Last Reviewed: November 9, 2023

Sixty-six percent of legal department respondents are looking to cut back on outside counsel.

Above the Law

In the aftermath of the recession and inflation, legal departments are looking to cut costs yet again. Legal departments say they’re going to reduce their spending on outside counsel. An Above the Law article states that in a survey they conducted, that 66% of legal departments say they want to reduce costs significantly. One of the ways they propose to do so is by reducing work sent to outside counsel.

Cost Cutting Measures 

The following are a handful of measures that legal departments will incorporate in 2024 to cut costs and increase profits. 

Bring work in house

Taking work back in-house is a step that legal departments take to reduce costs significantly. This usually happens when profits and losses are being calculated, in an attempt to bring costs down. However, in-house teams may be burdened by the extra load, and may be understaffed.

Move work from big firms to ALSPs

Big firms come with big price tags, and legal departments know this all too well. Above the Law notes that legal departments will be moving legal work from big firms to alternative legal service providers (ALSPs). This move reduces costs significantly, while providing teams of attorneys who are experts in their jurisdiction and practice areas.

Leverage AI and Legal Tech

2023 signaled the grand entry of legal AI and yet another major disruptor in legal tech. AI-powered CLM and NDA solutions offer big cost-savings, error-free and efficient outputs, and help legal departments save time exponentially. They also offer helpful insights and metrics that can help finetune legal workflows and processes.

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