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Relative costs of lawyers

I’d like to test this proposition. Assume a corporate generalist six years out of law school. If hired as a full-time lawyer, that lawyer costs the company approximately $150-$170 per hour fully-loaded (See my post of Oct.18, 2005 on calculating a fully-loaded cost per lawyer hour.) The lawyer with the same amount of experience who is at a regional law firm, one of say 20 to 50 lawyers not on the coasts, would cost the company $180-$220 per hour.

The identical lawyer, hired instead as a temp by the company – but not through a temporary service agency, might cost $70-90 per hour with no benefits. (See my post of July 14, 2005 about retaining former lawyers of the department.) The same lawyer with the same qualifications if hired through a temporary service agency might cost $80 to $100 per hour. Finally, the same lawyer but an Indian law school graduate might bill at $15 to $35 per hour. (See my post of Jan. 6, 2006 about the Indian legal offshore market.)

Am I right? Quite a range of choices and costs!

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2 responses to “Relative costs of lawyers”

  1. Offshoring and the Hourly Rate

    Rees Morrison at the Law Department Management blog recently made two posts which reinforce my belief that value based pricing must become the dominant method of billing business clients. Here, Mr. Morrison, examines the cost of legal services outsourc…

  2. Offshoring and the Hourly Rate

    Rees Morrison at the Law Department Management blog recently made two posts which reinforce my belief that value based pricing must become the dominant method of billing business clients. Here, Mr. Morrison, examines the cost of legal services outsourc…