Photo Credits: lms-jur
BTI Consulting has its multi-national presence across the world. It broadcast its Market Outlook 2014 webinar on 16 Jan, 2014 in which it says that corporate clients are likely to hire law firms more for IP litigation, M&A, class actions, tax issues and regulatory matters. The high rate law practices and high growth will be taken into account when deciding the hiring.
BTI Market Outlook and Client Service Review 2014 contains some points of view of its President and Founder, Michael Rynowecer which allows you some insights that are sobering as well as impressive. Some salient points that can be converted into an infograph are listed below.
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The US legal expenditure has exceeded $100 billion in recent years. $60 billion of this amount went to outside law firms.
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Litigation seems to be increasing and if the trend continues through 2014, corporations will generate more of them. These however, will be handled within the corporation without any outside help or guidance. In-house dealings have increased considerably in the last two years. The increase, in fact, is considerable at $6 billion.
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The Fortune 1000 companies among them will hand over their legal work to a total of 650 legal firms.
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In-house counsel, when the need arises, will hold consultations with a peer in order to hire a law firm and usually, it is the first recommended firm that gets the contract.
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It looks as if only 31.4% of the corporate entities are satisfied with hired law firms.
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Law firms are taking to marketing and business development in a big way. They are spending around 2.4% to 2.8% of their gross revenue. The sum includes the marketing personnels’ salaries.
Rynowecer offered several business development tips:
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Law firms should stop stagnating and start recruiting new lawyers to serve in-house in order to improve their value and to handle extra work.
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A triage team should be formed with clients which can assess new developments as they happen. The team should meet periodically, may be biweekly. According to BTI, corporations are likely to settle litigations to the tune of 40%.
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IP opportunities should be spotted by offering to sit on the new product development committees of the clients.
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Apprise the clients of the value-added tools like guidelines, checklists and self-assessments.
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Understand client’s business, realize the value for the dollar and commit to offer help. These will all form the marketing activities of the law firms. A law firm should be seen to be interested in solving the problems facing a client.
New businesses can see opportunities arising with many global organizations coming to the U.S. and the native companies looking at the prospect of expanding to other countries. A long term growth plan will have skills for marketing and business development in place. Law firms will do well to always remember that if you fail to be a predator, you will turn prey. There is no middle-ground anywhere in the field.
Written By:
Stella Kessler comes with a background of law. Her love for writing motivated her to start blogging on law related subjects that include information on car crash compensation payouts. She also consults for NY SEM socialmedia-management as a reputation builder.