Many Legal Departments Lack 'Gumption' When Negotiating Outside Counsel Rates
"While many in-house counsel are skilled negotiators by training, negotiation takes on a different tenor when you're sitting across from an external partner whose collaboration you rely on for critical support," legal department consultant Jason Winmill said.
October 07, 2022 at 06:41 AM
3 minute read
A new report from Wolters Kluwer found that many legal departments do a pitiful job negotiating outside counsel rates—with companies in the financial and banking industries being the big exception.
In fact, report author Nathan Cemenska said many legal departments "do not even attempt to exercise any central control, but decentralize rate negotiations out to in-house counsel, many of whom lack the skills, gumption, desire and/or temperament to take an arm's-length tone in rate negotiations—with results that are all too predictable."
According to Wolters Kluwer ELM Solutions, corporate legal departments at large organizations saw steep increases in outside counsel spend from 2020 to 2021, but financial companies escaped the brunt of the hikes.
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