Reasons to consider outsourcing a practice area of a law department

Why might a general counsel send all the work in an area – such as environmental, patent, ERISA, or employment (and some or all of the inside staff doing it) – to a single law firm on a fixed fee basis? Why outsource an area of work?

To reduce costs: my experience consulting on seven outsourcings is that the savings can be from 10-20 percent from the extrapolated total spending projection

To improve service: law firms with sizeable practices have a broader and deeper array of talent to assign to matters according to the different complexities of the matters

To solve staff problems: the in-house staff in the practice area are weak, or poorly lead, or suffering turnover, or have morale problems

To stop being a conduit: the outsource firm’s lawyers work directly with clients, rather than serve through the in-house lawyers

To focus on core competencies: the law department can focus on the most important legal issues of the company, rather than devoting management time to peripheral specialties

We welcome comments

Your email address will not be published. Required fields are marked *