In recent years, the rising costs of outside counsel and increasing pressure on legal teams to improve efficiency have led many general counsels (GCs) to consider bringing their legal work in-house. According to a report by the Thomson Reuters Institute’s “2024 Report on the State of the US Legal Market,” 70% of GCs are planning to do just that.
Meanwhile, Chief Legal Officers (CLOs) are facing similar challenges as they look to reduce legal costs and improve operational efficiency within their departments. The Association of Corporate Counsel’s (ACC) “2024 Chief Legal Officers Survey” revealed that nearly 60% of law departments have experienced significant rate increases from their outside law firms, while over 40% have been directed to reduce legal costs. In response, 40% of CLOs identified operational efficiency as their department’s top strategic priority for the coming year.
To enhance overall departmental efficiency, 45% of CLOs expressed intentions to invest in new legal technology. This trend towards insourcing legal work is driven by the need to better manage legal spend and resources in order to meet the demands of their organizations. By investing in technology and reevaluating the use of outside legal services, GCs and CLOs are looking to control costs and improve operational efficiency within their departments.
