As this issue of InsideCounsel discusses in-house counsel compensation and outside counsel relationships, I'd like to identify some techniques and trends that I believe will impact each.

Inside Counsel: In my view, legal departments should hire fewer full-time employees, give them broader responsibilities and pay them more.

Start with the denominator. Are you capturing all of the company's spend on legal services? Are human resources, facilities and IT spending money on outside counsel? Is finance getting international tax (or other legal advice) from lawyers at the auditors?