The Role of the Midsize Firm in Economic Recovery
As law firms and their clients look forward to the prospects of economic recovery, larger companies are relying less and less on a small number of "go-to" mega-firms for all their legal needs. As a result, quality midsize firms are well-positioned to grow as in-house legal departments increasingly "unbundle" their legal services.
In a typical unbundling scenario, in-house counsel reviews all of the matters traditionally handled by large firms (often by default) and strategically assigns them to a variety of firms with an eye toward efficiency and value. While large firms inevitably retain some of the work, small and midsize alternatives also get a piece of the action. This trend is already generating greater opportunities for midsize firms to provide high-value services to larger companies, while continuing to deliver unparalleled responsiveness and informed advice to their all-important, middle-market clients.
Fueling the unbundling trend is the continued pressure on in-house counsel at companies of every size to drive down legal costs, especially spending on outside counsel.