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Issue link: https://digital.canadianlawyermag.com/i/752781
w w w . C A N A D I A N L a w y e r m a g . c o m N O V E M B E R / D E C E M B E R 2 0 1 6 37 make sure they're as busy and providing as much value for the organization as possible," O'Reilly says. Rotstein says most corporate counsel still work in small in-house depart- ments, despite the recent uptick in hir- ing he's noticed. Some 51.2 per cent of respondents have less than five lawyers in their legal department, 24.1 per cent have six to 15 lawyers, 9.9 per cent have 16 to 30, 4 per cent have 31 to 50, 5.6 per cent have 51 to 100 and only 5.3 per cent have more than 100. He says some big corporations have in-house pricing departments, and while smaller in-house departments don't have those resources, he predicts it will become a trend as in-house departments grow. BY THE NUMBERS A variety of sectors took part in this year's survey, with 19.1 per cent from the financial sector, 17.5 per cent in government, 14.9 per cent in the industry or manufacturing sector and 12.2 per cent in the resource-based sector. Lawyers working in the technol- ogy sector made up11.6 per cent of respondents, 9.9 per cent were from the service sector, 7.9 per cent in the non-profit sector and 6.9 per cent in the professional services sector. In keeping with survey results from past years, 9.9 per cent had more than $10 million available in external legal spend over the last fiscal year. Of the respondents, 5.6 per cent spent between $5.1 and $10 million, 7.6 per cent spent between $3.1 and $5 mil- lion, 22.1 per cent spent between $1 million and $3 million, 16.2 per cent spent $501,000 to $1 million, 25.1 per cent spent $101,000 to $500,000 and 13.5 per cent spent $100,000 or less. Litigation took the top spot again as the area in-house counsel outsource the most, with 72.2 per cent of the vote. Employment law took second, with 50.7 per cent, up slightly from last year's 46 per cent. There was a slight drop in the percentage of mergers and acquisition work sent out, coming in at 30 per cent this year, down from 31.9 per cent previously. Rounding out the top five, 27.3 per cent sent out intel- lectual property work and 26.4 per cent sent out tax work. IF USING AFAS, PLEASE SELECT THE ONES YOU ARE CURRENTLY USING. 51.5 % Discount 41.5 % Flat - quote on a prescribed scope or phase of work or bundled portfolio of work 40 % Fixed - consistent price for particular task or type of matter 28.5 % Capped - Client pays lesser of actual cost or the pre-determined capped fee 15.4 % Not using AFAs 13.1 % Value billing - Fee structure determined upfront 10 % Holdback/success fee - percentage of hourly rates or flat fee held back 8.5 % Retainer - A monthly or annual rate for unlimited access to firm or group of lawyers 6.2 % Collared - Firm and client agree to split difference on agreed range if cost is more or less than quoted fee 5.4 % Phased fees on specific projects 3.8 % Contingency - client pays a negotiated percentage of money recovered, saved or won 3.1 % Busted deal - client does not pay or pays reduced amount if deal does not proceed as anticipated No Yes, in-person Yes, over-the-phone Yes, written 87.8 % 5.3 % 4.8 % 2.1 % HAS YOUR TOP LAW FIRM ASKED YOUR LAW DEPARTMENT TO COMPLETE A WRITTEN, OVER-THE-PHONE, OR IN-PERSON SATISFACTION SURVEY IN THE LAST 12 MONTHS? 68.5 % Yes, the general counsel/ legal department makes the selection DOES THE GENERAL COUNSEL HAVE THE AUTONOMY TO SELECT FIRMS? 21.5 % It is a shared decision with executive management/ board 7.7 % No 2.2 % Handled by procurement department/ process 43.1 % 17.1 % 39.8 % HOW MANY LAW FIRMS ARE YOU USING? 1 to 4 5 to 10 More than 10 National firms Boutique firms (IP, employment law, tax) Regional firms International firms Alternative firms LPOs 78.5 % 71.3 % 64.6 % 37 % 5 % 2.2 % DO YOU USE?