2009 IN REVIEW Key trends: Mid-tiers make their mark

Every cloud has a silver lining, and though the GFC brought with it a spate of salary freezes, redundancies and general uncertainty, it also provided an opportunity for mid-tier firms to prove…

Promoted by Lawyers Weekly 11 December 2009 Big Law
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Every cloud has a silver lining, and though the GFC brought with it a spate of salary freezes, redundancies and general uncertainty, it also provided an opportunity for mid-tier firms to prove their worth.

With businesses suddenly scrutinising their balance sheets with a fine-tooth comb, the pressure was on in-house lawyers to trim their legal spend.

Speaking to Lawyers Weekly in April, DibbsBarker managing director Alan McArthur said this had provided the impetus for in-house lawyers to look further afield, and consider cheaper alternatives to the top-tier for legal services.

"For corporate counsel who have traditionally always had strong views on quality - and who have tended to use only a few firms - in times like these they start to look outside their traditional and well-worn relationships to see what other options they've got," he said.

Herbert Geer managing partner Bill Fazio concurred: "I think the pressure is on the buyers of legal services to justify how they spend their budget ... and I think these circumstances have reinforced the trend towards asking 'Do we always need to send all our work to a panel of two or three mega firms?'"

He warned, however, that sophisticated businesses wouldn't take risky gambles with unknown quantities, but said that mid-tier firms who could prove their service quality and experience was up to scratch would now get a seat at the table.

"[Clients] are now willing to look outside their normal relationships, and if you can meet the market in terms of those criteria, they're prepared to give you an opportunity," he said.

It wasn't just on the client side that mid-tiers came into their own. The downturn also opened the door for them to recruit talented lawyers who - with opportunities at a standstill in the top-tier - were more willing to see what the mid-tier had to offer.

Speaking to Lawyers Weekly in October, Taylor Root consultant Matt Harris said that he believed some lawyers who had traditionally viewed themselves as exclusively top-tier had become "disenchanted" as a result of the downturn.

In return, he said, mid-tier firms have been more willing than the top-tier to start strategically recruiting, to position themselves for when the market swings back.

"Particularly with some of the larger mid-tier firms, there seems to be a sense of excitement about what's coming - about the work and the clients they've managed to bring on board over the bad times, and now there's a real effort ... to take the opportunity to recruit some of the talent that's out there, and get ahead of the pack," he said.

Other significant trends in the legal profession this year have included (click on link for a full examination of each trend):

>> Mid-tiers make their mark

>> Climate change on the horizon

>> The rise and rise of in-house

>> Speaking out about outsourcing

>> Too many city lawyers highlights rural shortage

>> Alternatives for billings methods gain momentum

>> The trend to business-minded lawyers

>> Mental health issues come to the fore

>> Workplace relations tug of war

>> Big firms place freeze on salaries

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