How can your organization deepen its legal bench, without adding personnel costs and H.R. headaches to the in-house legal department? For many, the answer is found with outside counsel.
Outside counsel can bring experience, independent thought and objectivity that might not be found by staff counsel. Given the complexities of legal issues organizations may face, companies, below are several considerations that companies may consider when deciding whether to build or maintain in-house counsel, versus hiring outside counsel…
• Keep costs in check. The argument of in-house versus outside general counsel has historically been distilled to paying a salary versus a retainer. An in-house attorney or department requires salary and benefits for the attorneys and administrative support that could be far higher than an outside firm’s ongoing retainer.
• Technology adoption. Technology drives the practice of law — and the spending to support it. Research firm Gartner reported in 2021 that legal costs were on the rise — and expected to triple by 2025. Beyond cost, maintaining hardware and software can tax a company’s IT department. Companies using outside counsel ensure the latest technology is in place — without the hefty price tag or headaches.
• Keep costs in check. The argument of in-house versus outside general counsel has historically been distilled to paying a salary versus a retainer. An in-house attorney or department requires salary and benefits for the attorneys and administrative support that could be far higher than an outside firm’s ongoing retainer.
• Technology adoption. Technology drives the practice of law — and the spending to support it. Research firm Gartner reported in 2021 that legal costs were on the rise — and expected to triple by 2025. Beyond cost, maintaining hardware and software can tax a company’s IT department. Companies using outside counsel ensure the latest technology is in place — without the hefty price tag or headaches.
• Geographic diversity. In a flattening world, legal expertise can cross state lines or even national borders. Regulatory or legal matters from another state or nation may require an attorney or litigator skilled or licensed in those jurisdictions. The offices or of-counsel relationships outside counsel often bring can help strengthen the client’s legal footprint.
• Post-Covid related insights. Though the pandemic is mostly behind us, many of the regulatory, compliance and employment changes Covid brought remain challenging to in-house law departments. Outside counsel, on the other hand, often brings a deeper, uniquely focused understanding of these matters — insights that are continually refreshed and updated.
• A deeper bench. An in-house attorney’s deep institutional knowledge of the company’s inter-related legal issues is an undeniable benefit. Building a relationship with outside general counsel, however, can bring similar benefits, while also bringing to bear the firm’s scope of services and professionals. This also can lend a “fresh perspective” to a company’s operations or the challenges it faces.
This doesn’t have to be an either/or option. Combining use of both in-house and outside counsel can create a blended model that bolsters the strengths of both.
Given the finances and professional agility required to respond to an increasingly complex legal landscape, the arguments supporting the hiring of outside general counsel have never been more important to a company’s ongoing operations, legal support — and bottom line.
Matthew Zifrony is a Director with Tripp Scott and practices in the areas of entrepreneurial business, commercial real estate, and condominium and HOA.
For more than 50 years, Tripp Scott has played a leadership role in issues that impact business.
Learn more at TrippScott.com.