Asia Legal Business have published their 2009 ALB 50…
They introduce the survey writing
As the effects of the financial crisis began to be felt in the latter half of 2008, many predicted the big international firms would be re-analysing their level of investment in the Asian region. Some firms saw dramatic about-turns from high recruitment levels, and those with lower leverage ratios were hit by declining PEPs. Associates were shed at unprecedented levels. The redundancies began as early as October, and for some firms extended into second rounds of cuts. Redundancy payouts further contributed to profit downgrades. Clifford Chance, for example, with 292 lawyers based in Asia, recorded a 37% drop in firm-wide PEP and lost its world number-one revenue rank; the firm?s high exposure to the financial services sector, along with redundancy costs, was blamed.
But in much the same way that Clifford Chance sought out more offsetting growth opportunities with its AZB Indian alliance, other firms have been busy jockeying for position for when the good times return. A range of firms have announced mergers, alliances, and office openings. Deacons Australia have merged with Norton Rose, Appleby with Dickinson Cruikshank, and J Sagar with M&C Partners, while Clyde & Co have formed an alliance with ALMT Legal, Salans with Pinsent Masons, and Eversheds with Hani Qurashi. Some of the focus has shifted recruitment drives to business consolidation, it seems. The merger between Norton Rose and Deacons, for example, was born in response to what Deacons? chief, Don Boyd terms ?an evolution of sorts? occurring in the legal industry. ?Our [Norton Rose and Deacons] joint vision is that there will inevitably be a limited number of true international firms, as the cost of establishing, operating and maintaining offices and good knowledge systems is getting higher and higher,? said Boyd. ?So our view is that in 10 or 15 years? time, there may be only 20 or 25 major international firms.?
Asia is probably the key battle in that war, and as the door opens for foreign firms in the previously closed legal services markets of Korea, Malaysia and, at some point, India (witness the high-profile alliance also between Clyde & Co and ALMT Legal), international firms will intensify their gazes eastwards. This trend, in fact, provoked president of the Society of Indian Law Firms, Lalit Bhasin, to say: ?The demand for opening legal services sector in India does not come from Indian businesses or professionals or even foreign multinational companies,? he said. ?Strangely, the demand comes from foreign lawyers and particularly those from the UK. It is obvious that the UK is witnessing a negative growth so far as legal profession is concerned.?
Here’s the methodolgy they use to compile the survey….
and here’s a pie chart of the survey’s geographical spread
Read the full survey and commenatry at http://asia.legalbusinessonline.com/surveys-and-ranking/alb-50-2009-asias-largest-law-firms/36230
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