According to the Thomson Reuters Institute’s “2024 Report on the State of the US Legal Market,” 70% of general counsels (GCs) are planning to bring their legal work in-house in order to reduce outside counsel spending. This shift is being driven by the rising costs of outside counsel and the increasing pressure on legal teams to improve efficiency.
The Association of Corporate Counsel’s (ACC) “2024 Chief Legal Officers Survey” revealed that nearly 60% of law departments have experienced significant rate increases from their outside law firms, while over 40% have been directed to reduce legal costs. In response to these challenges, 40% of Chief Legal Officers (CLOs) identified operational efficiency as their law department’s top strategic priority for the coming year, with a focus on the “right sourcing” of legal services. Additionally, 45% of CLOs expressed intentions to invest in new legal technology to enhance overall departmental efficiency.
This trend towards insourcing legal work is driven by the need to control costs and improve operational efficiency within legal departments. By investing in technology and reevaluating the use of outside legal services, GCs and CLOs are looking to better manage their legal spend and resources in order to meet the demands of their organizations.