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Money REUTERS Rick Wilking

Companies increase legal spending in 2010 and 2011

9/27/2012 COMMENTS (0)

By Erin Geiger Smith

Sept 27 (Reuters) - In 2010 and 2011, companies spent more on their in-house legal departments and on outside counsel than they did in 2009 and 2010, according to a new survey that measures legal spending in two-year increments.

The international legal spend for the 260 companies surveyed rose a median of 5 percent, to $31 million, while spending in the United States grew some 4 percent, to $26 million, said HBR Consulting, the company that conducted the survey. The 2011 survey showed the worldwide legal spend down a median of 1 percent.

Nearly 70 percent of the participating companies have revenues at or above the Fortune 500 level, HBR Consulting said.

The increases can be attributed to a number of factors, including higher billing rates for outside counsel and larger in-house staffs. The average hourly rate for the three top-billing U.S. firms is $458, up more than $45 from the last survey. More than half of the respondents reported that they had increased the number of their staff lawyers between 2010 and 2011.

Going forward, the companies said they expected particular demand for regulatory, international and government relations attorneys.

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