Outside Counsel Cost Control For Legal Spend Reduction

Implement strategic outside counsel management to reduce legal spend without compromising quality. Learn how to optimize firm selection, negotiate favorable terms, and achieve sustainable cost savings.

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Outside Counsel Management

Consulting Firm Office Outside Counsel Management

Outside Counsel Management and Rationalization initiatives are aimed at optimizing the selection, management and use of outside counsel. Leading legal departments are constantly evolving and adopting new OCM approaches to improve quality and reduce costs.

“Your first and foremost job as a leader is to take charge of your own energy and then help to orchestrate the energy of those around you.”
— Peter F. Drucker, Leading 20th Century Management Thinker

Employing a structured process, outside counsel is objectively evaluated and tested against viable "market alternatives", and favorable economic terms are obtained. Typically, management processes are established to ensure the program’s elements are implemented and both quality improvements and savings are realized.

REDUCE COSTS, maintain QUALITY

Given the breadth, unpredictability, and high-risk nature of legal work at large companies, strong outside counsel and service provider programs are a must. Pressure to reduce costs via reliance on under-developed sourcing strategies can lead to the disruption of long-established relationships with qualified and conscientious service providers. In some situations, short-term savings pressures can lead to a decrease in the quality of legal services. Costs inevitably reappear when legal departments fail to design sustainable strategies supported by objective metrics.

we are able to identify and secure long-term strategic partnerships with outside counsel based around the concept of value to the client and mutual interests to deliver short-term savings and long-term value, via development of comprehensive and best-in-class:

WHY CONTACT ARGOPOINT

We have negotiated significantly more cost effective solutions with incumbent and new firms for top legal departments as part of their OCR process.  These improved arrangements are not the function of “hammering” on outside counsel, but arming knowledgeable in-house counsel with objective data and industry insights to demonstrate to the current law firm that other viable options exist and improved value must be offered to remain competitive.

OCR initiatives can benefit from the assistance of an experienced outside consultant. Argopoint can:

  • Free up in-house attorneys to focus on more important responsibilities, and avoid affecting relationships

  • Accelerate the overall process, minimizing time required to realize savings

  • Help avoid common missteps made by other companies

Typical Argopoint roles may include:

  • Help to clarify the overall program objectives

  • Provide initial diagnostic/opportunity assessment

  • Assist with the overall process design and strategy

  • Project management

  • Financial and analytical support

  • Data management

  • Alternative firm research

  • Meeting facilitation and interview support

Key Questions for Corporate Legal Departments

1. Is your legal department getting the best value for the quality of services you receive from outside counsel? How is this objectively measured?

2. Does your legal department work with too many outside counsel firms? Or too few? How do you know?

3. Does your legal department leadership ever feel that there are other “unknown” firms out there that could perform the same services and achieve the same results for lower costs, but does not know how to find them?

4. Does legal department leadership feel that matters are handled inconsistently across all practice areas? Or even within particular practice areas?

Updated February 16, 2025 | Argopoint Consulting