In a recent development, many in-house legal departments are planning to increase their spending on outside counsel. This shift, identified through a comprehensive survey by the Association of Corporate Counsel and FTI Consulting, highlights a significant change in how legal services are being procured by corporations worldwide.
The survey, which collected responses from 772 chief legal officers (CLOs), revealed that 43% are planning to “increase the volume of work” outsourced to law firms by 2025. This marks a notable 17 percentage point increase from the previous year, indicating a substantial trend towards greater reliance on external legal expertise.
Several factors are contributing to this shift. Over 40% of the survey respondents cited the “evolving global regulatory landscape” as a primary reason for increasing their use of outside counsel. As global regulations become increasingly complex, corporations are finding value in leveraging the specialized knowledge and resources that external law firms can provide.
This trend may also be reflective of broader changes in the legal industry, where the demand for niche and specialized legal advice is growing. As regulatory challenges become more intricate, in-house legal teams may be opting to outsource these responsibilities to ensure compliance and mitigate risks effectively.
The insights from this survey suggest that the legal market is undergoing a dynamic transformation, driven by external pressures and internal strategic considerations. For legal professionals in corporate environments, understanding these shifts is crucial for adapting to changing demands and ensuring that their organizations remain at the forefront of legal and regulatory compliance.