A survey conducted by the Association of Corporate Counsel (ACC) in 2024 found that nearly 60% of law departments experienced significant rate hikes by their outside law firms. Additionally, over 40% of law departments were given a mandate to cut legal costs. As a result, operational efficiency was the top strategic initiative for their law department in the upcoming year, with the “right sourcing” of legal services following closely behind.
In response to the rising costs of outside counsel and the need for legal teams to increase efficiencies, 70% of general counsels (GCs) are planning to bring their legal work in-house. This move is seen as a way to reduce outside counsel spending and improve overall productivity within legal teams.
Furthermore, 45% of Chief Legal Officers (CLOs) surveyed stated that they plan to invest in new legal technology to improve the overall efficiency of their department. This shift in focus towards finding cost-effective solutions and increasing productivity within legal teams highlights a growing trend in the US legal market.