Grabbing Slices of the Diminishing Legal Spend Pie: Legal Project Outsourcing, Downsourcing and Insourcing


Demand for legal services has remained fairly stagnant for the past four years. At the same time, corporate clients, buffeted by The Great Recession and cognizant of the excess of supply over demand for legal services, have continued to exert extraordinary pressure on law firms to reduce fees.

In to this vortex has emerged legal project outsourcing companies which compete in hand to hand combat with law firms for increasingly larger portions of the legal spend. The LPO industry has grown from $200,000,000 to almost $2,400,000,000 in three short years and shows no sign of slowing down.

Law firms seem to have no alternative but to make peace with these new realities. They need to establish their own captive LPO alternatives or forge alliances with existing LPO’s. And in the process, law firms are emerging as general contractors.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jerome Kowalski, Kowalski & Associates | Attorney Advertising

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