• According to a new Association of Corporate Counsel analyze, legal departments will employ the service of more in 2021.
  • The development won’t spell doom for outside counsel: they also approach to outsource additional to legislation companies.
  • Legal departments this year count on to deal with extra transactional, compliance, and regulatory get the job done.
  • Go to Company Insider’s homepage for much more stories.

A third of internal lawful departments say they’re staffing up in preparation for a busy 2021. But that isn’t going to signify prospects for big legislation corporations to acquire function will go absent.

Corporate authorized groups hope to be busier with transactional, compliance, and regulatory perform this yr, in addition to modifying place of work protection polices owing to the pandemic as well as business-certain adjustments in regulation, in accordance to a new report last thirty day period from the Affiliation of Corporate Counsel. 

Of the practically 1,000 survey respondents, who are chief legal officers and generals counsel, 32% claimed they anticipate to employ the service of much more this yr — but 50 % of these expanding groups say they however strategy to outsource a lot more function than at any time to exterior regulation firms to keep up with an influx of function.

ACC_CLOreport21 pg 18@4x

Of the lawful departments that be expecting to increase attorneys in 2021, 49% say they also count on to outsource more perform to law corporations this yr.

Affiliation of Corporate Counsel


Providers used to outsource most of their lawful get the job done to legislation firms, whose experts produce steep authorized fees and have a steeper learning curve to the ins and outs of the corporation they are operating with. As internal legal departments acquire on bigger roles in their companies, they can control additional of the legal process in-property.

Whilst this lowers the pitfalls to corporations of sending get the job done and essential facts outside the organization and increases safety, the ACC report stated, it can also threaten the stream of every day perform heading to legislation corporations — but the good thing is, the report located, you can find plenty of work to go all over that even departments that are staffing up will require the aid of outside law firms to take care of an enhanced volume of function.

ACC_CLOreport21 pg 49@4x

Main lawful officers say they will be specifically chaotic this year working with transactional, compliance, and regulatory do the job.

Affiliation of Company Counsel


Mainly because legal departments are escalating in their scope in addition to their sizing, using the services of “does not always suggest lowering the total of function that is sent to regulation companies,” the research reported. 

ACC study respondents explained they think they will have to have extra means to deal with substantial transactions, like M&As and spin-offs compliance difficulties regulatory difficulties details privateness and security litigation and e-discovery issues and more in the coming year.

Heading into 2021, 61% of chief lawful officers reported they assume field-specific regulation to be their most important challenge this calendar year, adopted by info safety privateness procedures (54%), political variations (38%), mergers and acquisitions (32%), and taxation (22.5%).

Chief legal officers also claimed that they have also been active shoring up travel and wellness guidelines due to the coronavirus pandemic: 95% said they’ve transformed their personnel protection policy, and 94% adjusted their vacation coverage previous 12 months.

Authorized departments are also progressively being identified as on to cope with a broader array of business functions: 74% take care of compliance 46% take care of privacy 43% take care of ethics 40% manage possibility 26% handle govt affairs 20% deal with human methods and 18% manage administration.

When compared to 4 many years ago, legal groups are also performing far more straight with companies’ core management groups: 78% of main lawful officers now consistently show up at board conferences, according to the ACC report.