Rising costs in the legal industry are presenting a significant challenge for in-house legal teams in 2024. According to Axiom’s analysis of the Thomson Reuters Institute’s report, two in five in-house counsel expect their external legal spend to increase. These rising fees are largely driven by higher payroll and overhead costs, particularly as law firms transition back to in-office work after the pandemic.

However, rising costs don’t have to result in runaway budgets for in-house teams. By taking a proactive approach, in-house counsel can use the opportunity to renegotiate contracts with external firms or explore alternative legal providers who may offer more flexible pricing. Law firms themselves are facing pressures to streamline operations, which in turn can help in-house leaders secure better deals.

Optimising legal budgets in 2024 requires careful planning and strategic adjustments. By developing stronger billing guidelines and regularly reviewing external counsel, in-house teams can manage costs effectively while maintaining the quality of service they need.

Read Further: Axiom Law