In-house counsel have gained prestige within their companies as a result of recession-led changes to the legal sector, while Magic Circle firms have lost status
In-house counsel have gained prestige within their companies as a result of recession-led changes to the legal sector, while Magic Circle firms have lost status.
The long-established practice of hourly billing is giving way to value billing, with firms offering freebies such as free-of-charge secondees to keep value-conscious clients on board.
A report, Law firm of the 21st century—The clients’ revolution, commissioned by international law firm Eversheds, warns law firms that that they need to modernise or lose out as a major power shift is taking place in favour of the in-house client.
The report canvassed the opinions of 130 general counsel and 80 law firm partners around the world, with just over half (51%) of clients and 46% of partners citing the term, “Magic Circle”, as defunct.
The overwhelming majority of clients and partners said they welcomed the change to the traditional law firm hierarchy.
In-house counsel have gained status—three-quarters of general counsel said they occupied a more senior commercial advisory role in their companies than before the recession.
The recession has also affected the way law firms charge. The hourly rate is now seen as just one tool among many billing structures, and 63% of clients reported seeing better value for money since the recession through add-ons such as free-of-charge secondees. For the full story see www.newlawjournal.co.uk.
