Taking time on the front - end to ensure that the
needs of your outside law firms are also addressed will greatly increase the likelihood that a value - based pricing program is successful.
Now that corporations are consolidating the
number of outside law firms in many instances, the costs of retrenching from a firm that has pursued a flawed strategy could be high.
Corporate clients, under intense internal pressure to reduce the overall costs of legal services, insisted on taking control of their matters and managing the
work of their outside law firms to a degree never before seen.
In 2007, United Technologies» general counsel created a program to discourage its
hundreds of outside law firms from using hourly rates, and over the past five years the company has significantly increased its use of non-hourly fees, Greenspan said.
However, nearly a third of CLOs have fired or are considering firing at least one
of their outside law firms this year.
Even though I work at one
of those outside law firms, this has always made total sense to me: «The survey also found that bringing the e-discovery process in - house is a common and effective way to control spending.