Spending in Law Departments is Rising, But the Money Isn’t Going to Law Firms

Total legal spending is up slightly — by 2 percent — according to HBR Consulting’s 2015 Law Department Survey. But, not surprisingly, outside counsel spending is flat compared with last year.

Spending within legal departments grew only 3 percent.

“Departments are prioritizing internal operations, hiring internally, investing in new or upgraded technologies, and raising total compensation for their employees,” Kevin Clem, who leads HBR’s Law Department Consulting practice, said in a statement.

There’s some good news for those working in-house: The average increase in total compensation, including base salary, cash bonus and long-term incentives, was 3.5 percent.

“There’s a continued ...