The legal supply chain reimagined: new advisory relationships for a new era
In this paper from The A&O Legal Innovation Benchmarking Report, we examine the changing role of legal supplier relationships and how successful innovators manage a diversified supply chain.
Highlights from the paper:
- Just under half (44%) of the average legal function budget is spent on external legal providers.
- The emergence of certain new legal service delivery models has been popular with in-house legal teams. For example, 63% of those surveyed have used contract lawyers and 41% have used project-based outsourcing.
- However, most legal functions have not embraced the full range of alternative legal service providers: just 29% have experience of business / regulatory consultants, 27% of outsourcing day-to-day operations and 21% of legal function consultants.
- To manage a more diverse legal supply chain effectively, it is likely that the 41% of in-house functions which have legal procurement and supplier management specialists in place today will need to increase.
- Those furthest ahead on their innovation journey have enhanced their supplier management capabilities, and show a greater degree of openness to engaging alternative legal service providers.