Outside counsel are more concerned with keeping track of company activities that might have legal implications than controlling outside costs, according to the 2006 ACC/Serengeti Managing Outside Counsel Survey Report. This shift in priorities is in line with in-house counsel's recognition of the importance of monitoring client activities in light of increased regulation and reporting requirements.

“In-house counsel's role has grown dramatically in the post-Enron era, as companies strive to meet new and constantly evolving compliance requirements,” says Frederick J. Krebs, president of the Association of Corporate Counsel. “At the same time, they have continued to focus on getting the best from their outside counsel partners and are holding them accountable when they fail.”

In addition, the survey revealed that in-house counsel are more likely than ever to take action against underperforming firms, with 55 percent of survey respondents terminating relationships with at least one of their law firms in 2005. The top reasons for firing firms remained consistent with previous years, with 69 percent citing poor quality of work/results, 66 percent citing lack of responsiveness and 62 percent citing too high fees/costs.