Study: Companies Want Smaller Firms, But Have Trouble Finding Them
January 18, 2018
A recent study shows that large companies increasingly want to work with smaller, more innovative law firms. Quizzing over 300 General Counsel at global organizations with more than $1 billion in revenue, the survey asked about the factors that are most important when identifying and appointing law firms.
The resulting data shows that companies are enamored with smaller firms primarily because they provide better client service. Of the 71% of respondents that outsource the majority of work to smaller firms, 63% do so partly because of the client service factor. Of course, good client service encompasses a variety of different practices. Interviewees frequently mentioned that in addition to possessing specific areas of expertise that larger firms do not, lawyers at smaller firms are much more likely to go the extra mile to serve their clients.
Data collected also noted that even when the company had a large in-house team, they were equally as enthusiastic to work with small and medium sized firms. In line with the overall results, 70% of companies with large legal teams preferred the relationship with smaller firms. A higher level of innovation delivered by the smaller firms was the motivation given for doing so. That combined with the agility and client service aspects set smaller firms apart.
Read the complete survey results here.