LexisNexis CounselLink has released its 2020 Enterprise Legal Management Trends Report, which is based on more than $35 billion in legal spend comprised of almost seven million invoices and more than 1.7 million matters. This report, the seventh from CounselLink, updates on six key metrics based on 2019 charges billed by outside counsel as well as insights since the COVID-19 crisis, which has ratcheted up the pressure on corporate legal departments to manage outside counsel expenses. Among other results, according to the report, law firm invoices reflect a notable trend in increased discounting in the last three months, alternative fee arrangements went from 9.2% to 12.1%, a major change, and large law firms, defined by the Am Law 50, continued to dominate the high-rate work. "As organizations seek to rein in 2020 expenses, the pressure on GCs to do their part means a continued focus on outside counsel spending," says Kris Satkunas, director of strategic consulting for CounselLink and author of the Trends Report. "We recommend legal departments use efficient, scalable approaches to reducing outside counsel bills to navigate these uncertain times. Additionally, given trends that reflect reduced demand for legal services, coupled with greater discounting of legal bills, GCs need to be mindful of the cash flow challenges potentially being faced by their law firms." Check out the entire report here.
Published July 20, 2020.
