If you thought pricing pressures would decrease as the economy slowly (and painfully) improves, think again. A survey from Consero Group finds that 61 percent of general counsels (GCs) are unsatisfied with their outside counsels’ rates, believing them to be too high.
The 2013 Spring General Counsel Survey, which polled Fortune 1000 companies, further states that 61 percent of GCs use alternative fee arrangements for outside counsel—and that 60 percent plan to increase the use of AFAs in the next 12 months.
This is no surprise given the increased pressure to reduce legal expenses, Consero CEO Paul Mandell said in a press release. In fact, a separate analysis by TyMetrix Legal Analytics found that in 2012 the average billing rate for associates jumped 7.4 percent to $370. Average partner rates increased 3.1 percent to $536, with a high of $727 an hour being charged at firms with more than 1,000 lawyers.
Other findings from the Consero survey include:
- Only 31 percent of GCs said their company had a cyber security breach in the last year.
- A full 77 percent said they are prepared for cyber attacks, with only 23 percent reporting they’re unprepared.
- When it comes to an intellectual property theft, 69 percent believe they are prepared to defend against it.
To read the full spring survey report, which includes findings on social media and succession planning, download it here.