The landscape of the legal industry has been going through
plenty of changes over the past century as we adapt to cope with new ways of
living, the advancements in technology, and the everchanging needs of
businesses and law.
HBR Consulting did a poll of 225 in-house legal departments
and found that cost control is amongst one of the biggest concerns, which has
led to in-house departments reducing their spending and adjusting the amount of
money they spend on internal hiring.
outsourcing replacing in-house legal departments?
Law departments within businesses are now starting to
consider alternative options to the traditional in-house model of legal than
Alternative legal service providers (ALSPs) are becoming a
popular choice, as they can provide companies with legal advice and offer
different pricing and payment structures which allows for more flexible legal
support than having an in-house counsel. ALSPs offer just as much experience as
in-house lawyers, with the added bonus of having expertise in various
It’s possible that we may see a greater shift in how legal
departments allocate spending between traditional in-house teams and exterior
support as they fight to remain competitive whilst also reducing costs across the
For corporations, cutting costs will always be a priority
but legal matters will always be part of running a business, and so whilst
outsourcing and investing in more technology will help them remain competitive
and efficient, and give increase support in specialised matters, it is unlikely
that larger businesses will axe in-house teams altogether.
In-house teams are particularly useful for drafting legal
documents and helping with day-to-day tasks. However, in a fast-moving and
increasingly complex business world, there certainly is place for legal consultancy and outsourcing to really
In-house lawyers are likely to want support on more complex
matters, particularly if they have a broader overview of business law or
industry specific law, and have not got extensive knowledge on environmental
laws, for example.