Summary: The 2014 Law Department Survey from HBR Consulting has found that legal spending across the world increased in 2013.
The 2014 Law Department Survey conducted by HBR Consulting has found that companies across the globe increased their legal spending by two percent, according to a press release.
HBR Consulting Senior Director and Survey Editor, Lauren Chung, said the following in the release:
“The aggressive measures taken by law departments to control and manage their costs are having a direct impact on legal spending. This year’s results indicate that law departments have been effective in their cost containment efforts, particularly with their outside counsel spending. While total legal spending increased by 2 percent, outside counsel spending decreased by 2 percent on a worldwide basis.”
Kevin Clem, the head of the HBR Law Department Consulting practice, said, “This year’s results align with what we see in our work with law departments. The use of technology to manage legal spending has become more prevalent through increased adoption of data analytics tools. In this year’s survey, 50 percent of participants cited the use of data analytics to select and improve negotiations with outside counsel. Law departments are seeing that investment in law department technology strategies and implementations are making internal processes more efficient and cost effective.”
Some of the findings from the survey include:
- There was a two percent decrease on outside counsel spending
- There was a five percent increase on inside legal spending
- In 2013 in the United States, total legal spending increased by one percent
- In 2013 outside of the United States, total legal spending grew by four percent
Just under 300 companies took part in this year’s survey as 292 responded. This is an increase from the 280 companies that took part in the 2013 Survey.
Across the world, the median for total legal spending hit $29.7 million and $26 million in the United States.
Of the companies that took part, the median number for lawyers worldwide came in at 32 and at 21 in the United States.
Image credit: lawtechnologynews.com