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TOTAL LEGAL SPEND OF THOSE SURVEYED AVERAGE PER RESPONDENT $4.5 MILLION answers we got paint a picture of stagnant or tighter budgets, and greater workload. The findings of the annual survey reflect those of the 2009 Association of Corporate Counsel chief legal officer survey, which highlighted increased regulatory burdens combined with cost pressures as top issues for senior legal officers. According to our survey, outside legal budgets rose for 45.8 per cent of respon- dents, while dropping for 20.8 per cent during the past year. When asked what the top factor was for the reduction in outside legal budgets, half of the respondents who indicated their budgets had decreased said there was simply less work to be done by outside counsel. Fewer than 45 per cent of them indicated it was because more work was being brought in-house. For the coming year, 51 per cent of those surveyed said they expect to see no change in their budgets, while 28.6 per cent expect a decrease in their budgets. The number one strategy employed by legal departments facing a decrease in budgets was, predictably, bring- ing more work in-house. New agreements with outside coun- sel and a reduced workload are the other most common strate- gies. Salary cuts and sending more work offshore to places like India come next. For law firms hoping to cash More work brought in-house in on the corporate world's increased workloads, the prima- ry concern for in-house counsel when dealing with legal service providers hasn't changed in the past year: be more concerned with costs. Legal departments also want outside firms to be A Tradition of Business more practical and commercial, and to better understand their clients' needs. Of equal concern, in-house lawyers If forced to reduce 86% spending during the past year what strategies did your legal department use? 37% New agreement with outside counsel 34% Reduced workforce 26% Salary cuts Respondents could choose more than one answer Sent legal work 11% off shore Whether conducting business in Canada or across the globe, Aird & Berlis LLP understands the realities of your work. Our clients benefit from the firm's solid relationships with major institutions, government authorities and renowned national and international law firm affiliates. We combine the depth and strength of Canada's largest firms with the creativity and effectiveness of smaller firms. Count on us for legal counsel from a business perspective. Partnership. Results. Success.® Eldon Bennett Managing Partner ebennett@airdberlis.com 416.865.7704 Untitled-4 1 Brookfield Place, 181 Bay Street Suite 1800, Box 754 Toronto, ON M5J 2T9 Canada www.airdberlis.com www. C ANADIAN Law ye rmag.com NO VEMBER / DECEMBER 2009 35 8/11/09 9:12:34 AM MILLION