Inside/Outside Attorneys Often Not on the Same Page

The International Association of Defense Counsel recently released its 2016 Inside/Outside Counsel Relationship Survey. The survey found major differences in how inside and outside counsel perceive some important relationship issues, including how much outsourcing has increased and the relative performances of both in-house counsel and outside lawyers. Both groups expressed major concerns in the areas of billing, budgets and communications. However, both groups did agree on the traits that are most valuable in their working relationships, and regarding what they do best and worst.

Results indicate that companies are consolidating more work with a smaller number of law firms. Sixty-one percent of the inside counsel surveyed reported increases in the amount of work they outsourced to law firms over the past year. Thirty-nine percent of outside counsel reported increased work over the same time period.

While there were disparities in the perceived effectiveness of inside and outside counsel, the respondents largely agreed on what they did well. Both groups agreed that law firm attorneys were able to collaborate effectively within the in-house departments’ organizational structures. Both groups thought in-house attorneys’ best traits were their responsiveness to questions, feedback and authorization requests. They also agreed that outside counsel are worst at providing timely and realistic budgets, and offering discounted fees or alternative fees when requested.

Both cited good communication, responsiveness, and clear project direction and objectives as the primary elements of inside and outside counsel working effectively together.