Outsourcing Legal Services in-House: A Growing Trend among Corporate Counsel Amid Rising Costs and Need for Efficiency

The Association of Corporate Counsel (ACC) conducted a survey in 2024, called the “2024 Chief Legal Officers Survey,” and found that nearly 60% of law departments experienced significant rate hikes by their outside law firms. Additionally, over 40% of law departments were given a mandate to cut legal costs. As a result, 40% of Chief Legal Officers (CLOs) surveyed stated that operational efficiency was the top strategic initiative for their law department in the upcoming year, with the “right sourcing” of legal services following closely behind.

In response to the rising costs of outside counsel and the need for legal teams to increase efficiencies, 70% of general counsels (GCs) are planning to bring their legal work in-house. This move is seen as a way to reduce outside counsel spending and improve overall productivity within legal teams.

Furthermore, the survey revealed that 45% of CLOs are planning to invest in new legal technology to improve the overall efficiency of their department. This highlights a shift in focus towards finding cost-effective solutions and increasing productivity within legal teams.