CFO magazine has reported on a new survey by the BTI Consulting Group which reveals that…
Companies have spent 7% less on legal fees in Q1 of 2009. The report by Sarah Johnson goes on to say
But the decline isn’t likely to last; new research shows legal departments predict a higher need for outside counsel in the coming months.
Companies have sharply cut back their outside legal budgets so far this year, ending the steady growth law firms were experiencing over the past four years. While businesses will spend more of their legal budgets on hiring law firms to help them with regulatory, bankruptcy, securities, and employment issues this year, according to a survey of corporate lawyers, they will spend less on other areas, such as litigation, mergers and acquisitions, environmental issues, and intellectual property.
Still, the study, conducted by BTI Consulting Group for the legal industry, predicts overall legal spending by companies in 2009 will decline by only 1.4%. The firm says companies will spend an average of $19.4 million on outside counsel services this year.
Read the full report at http://www.cfo.com/article.cfm/13639357/?f=rsspage
Here’s the intro page on the BTI site about the report and accompanying online workshop
Mid-Year Legal Spending
Update and Outlook for 2009
BTI just completed a brand new analysis of more than 1,200 interviews with corporate counsel at the world’s largest companies. The signs are clear.
Download an executive summary
Get Ready. Get Set. Rebound.
- Spending to rebound after sharp 7% decline
- 4 practices show signs of renewed life
- Regulatory work top driver of expected growth
Target Limited Resources at Rising Dollars
Join us for a penetrating look at exactly where the legal market has been – and where it is headed. You’ll discover:
- 4 practices where clients plan to boost spending
- Which practice areas have been hit hardest – and which will continue to spiral downwards
- The one type of Litigation which is plummeting
- 7 ways to use new client priorities to your advantage
- How 24.3% of law firms are benefiting from the downturn
- Learn the Truth about Budgets, Billing and Cost Pressure
- 7 out of 10 clients are changing the way they do business with their law firms. Learn exactly what to expect and how position your firm to take advantage of new cost-cutting dynamics.
