A new study has projected a 4.3 per cent slide in corporate spending on outside counsel next year, on top of this year's 10.8 per cent drop.
National Law Journal reports that outside counsel spending has dropped from an average US$20.8 ($23.05) million in the United States this year, and projections are that it will dip to US$17.7 ($19.6) million.
According to the study, by BTI Consulting Group entitled 'BTI Premium Practices Forecast 2010: Survey of Corporate Legal Spending', in-house counsel will be developing cost-effective compliance strategies, resolving litigation, and focusing on early case assessment next year, as well as crafting new strategies to manage outside counsel.
There is an imbalance between supply and demand, but a boost in a few practice areas such as regulatory work and litigation, indicates the imbalance may be levelling off, said BTI president Michael Ryanowecer.
Several practice areas are expected to sharply contract, including real estate by 12.4 per cent, corporate by 10.2 per cent, IP transactional work by 8.6 per cent; tax by 7.8 per cent, and environmental by 7.4 per cent, the study shows.