In order to react to increased pressure to be as efficient as possible, legal departments are bringing work in-house instead of relying on outside counsel, according to a report released Monday by ALM Legal Intelligence. While this may cut costs, the report also considers whether this “reflexive insourcing” creates a risk for the company.
The results from the 28-page report, ” Build or Buy? The Evolution of Law Department Sourcing,” are based primarily on responses from in-house attorneys who hail from companies with $5 billion or more in revenue per year. The feedback revealed that law departments are turning to the in-house legal team more than they are relying on outside counsel. In fact, respondents said that in-house counsel are the primary owners of work in eight out of 11 practice areas, including labor, intellectual property, and real estate.
