Working with outside counsel is like getting thrown in a pit of rattlesnakes and hoping one won’t bite you. Anonymous
Axiom, the 14,000-person alternative legal service provider, launched in 2000, together with Wakefield Research, recently conducted and published a Study of U.S. in-house counsel. They conducted a 15-minute Survey online in January and February of this year. Some 300 general counsels of small, mid-size, and large businesses responded.
The Significance of the Findings
The findings and recommendations are significant and should sound alarm bells for law firms representing businesses of any size.
The Survey confirmed that in-house legal departments simply lack resources across the board. And it’s getting worse. 96% have had their legal budgets cut in the last year. The GCs report an average decrease in legal department funding of over 10%. Almost all reported a lack of necessary staffing to do their jobs.
Nearly all expect a freeze on hiring even though they are seeing experienced people leave. That exodus leaves more work for those who stay, and as a result, ultimately, more people leave. About 97% of those surveyed used outside law firms last year to handle some 25% of their company’s legal matters.
There is no real surprise here. Axiom had previously offered similar findings. So did an Everlaw and the Association of Corporate Counsel Study, both of which I previously discussed.
To be blunt, in-house counsel just aren’t very happy with their law firms.
The Problem with the Opportunity for Outside Law Firms
As dour as this is for in-house counsel, it could be an opportunity for outside law firms. Outside law firms could pick up the slack that in-house counsel don’t have the time or resources to do. But not so fast. To be blunt, in-house counsel just aren’t very