Legal Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

When analyzing rate benchmarking of legal services, the type of lawyer and their case background, and the location of the case play an important role. For instance, in India, the salary of a corporate lawyer can be from USD 9,611.4 to 24,026.8 per annum, and the salary of an intellectual property lawyer is around USD 8,409.9 to 24,026.8 per annum. Similarly, the salary of environmental lawyers is between USD 6,006.7 to USD 14,416.1 per annum. This again varies based on expertise and experience.

The U.S. is also one of the top countries in the legal service industry. In 2022, the average salary of a lawyer was around USD 87,012 per year. The base salary was between USD 52,000 to USD 157,000 per year depending on the experience, and specialty. Immigration lawyers make around USD 70,000 to USD 83,000 every year.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the legal advisor at Baker McKenzie and Deloitte Company receives a 3% - 5% higher base salary compared to the salary received by the legal advisor working in companies such as Avvo, and Findlaw. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the legal services category over the last two years:

In October 2023, Baker McKenzie entered a joint venture with Korean law firm, KL Partners to stretch its presence in South Korea. This initiative sets a milestone for Baker McKenzie’s growth in South Korea, and also the ability of KL Partner to provide superior legal support to its Korean Client base.

In September 2023, The Abu Dhabi Ministry of Justice launched the “Legal for Your Help” initiative which aims to provide free legal consultation services to those who are unable to pay. The initiative focuses on achieving various goals such as facilitating access to justice for all, providing legal advice, and lowering financial burdens on customers.

In August 2023, Dentons, an international law firm, introduced a new version of ChatGPT, empowering its lawyers to utilize generative AI for active client engagement. This version features a chatbot based on the OpenAI GPT-4 language model, assisting lawyers in research, identifying legal arguments, and creating legal content.