Global shock waves

Cost considerations, as the aforementioned example of Lufthansa shows, affect more than just the use of technology. While those in Germany proceed to reprogram their structures with caution, a look beyond the borders shows how globally active legal departments are already managing their budgets.

British pharma giant GlaxoSmithKline, for example, proudly reported in summer 2016 that 84 percent of its 2015 law firm expenditure was not based on hourly rates. In 2011, this figure was still 68 percent, and just three percent in 2008.

Top Ten Deals 2017

Top Ten Deals

Seven years on from the Lehman insolvency, the realization is setting in that the cost-based thinking forced by the financial crisis is no temporary phenomenon.

Royal Dutch Shell, on the other hand, shook up and reduced its panel once more. This is not the first time that the petroleum corporate has brought in new structures to get its vast costs for legal advice under control. The goal is clear: spend several million euros less. Shell has already announced that its next move will be to examine the possibility of establishing its own legal advisory center for routine work. Meanwhile, a number of firms have already done this. [Allen & Overy[[href][469]]], [Baker&McKenzie[[href][78]]], [Freshfields[[href][40]]] and [Latham & Watkins[[href][1525]]] are examples of firms that have established advisory teams at lower-cost locations in recent years, be it Manchester, Dublin or Manila. The German lawyers at [Allen & Overy[[href][469]]], for example, have had positive experiences in compliance, and cooperation with lawyers in India is no longer off limits for this kind of labor-intensive work. In Germany, [Herbert Smith Freehills[[href][711]]] works with a small lower-cost team in Berlin for transactions.

Find out what strategies US firms are following in Germany

Seiten: 12345