With recent studies indicating the UK’s top law firms are large enough to be included in the FTSE100, is it time to reassess your relationship with them?
A recent survey, published by Europa Partners, revealed that six of the UK’s largest law firms would be part of the FTSE 100 index if they were publically traded. This new information raises several interesting points for their current and prospective clients.
Firstly how have the big firms managed to achieve this growth and are there any less expensive solutions for companies seeking legal services? The success of the big firms is largely down to the high demand for legal services and subsequently the fees that they charge. This situation may, however, be about to change. Not only has the current economic climate seen rates diminish but the advent of new, lower cost entrants to the market may well affect the firms higher up the chain. Smaller law firms are not only less expensive but also allow clients to wield more influence and secure a more personal service.
Secondly, how will the Legal Services Act affect the market? The Act allows law firms to accept external investment as well as permitting companies which are not law firms to offer legal services. These new freedoms will help smaller firms grow, although it will be some time before they can compete with the larger, more established companies.
4C Associates will be hosting a breakfast debate entitled, “External Legal Services – best bought by Procurement, or the In-house legal team?” which will consider some of the above points. If you are interested in attending please contact Petra Urhofer on firstname.lastname@example.org .