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Growth of in-house legal teams adding to law firm consolidation pressures
The growth of in-house legal teams has been slated as one of the factors contributing to the continued consolidation of law firms, both big and small.
Emma Musgrave
The 2018 State of the Legal Market – Australia white paper, created by Melbourne Law School and Thomson Reuters, has identified the dominant trends impacting the Australian legal market in 2018, as well as key issues influencing 2019 and beyond.
“FY18 was characterised by the continued consolidation of large commercial law firms. During the period, law firm tie-ups peaked significantly at 19 deals, involving 123 partners. We saw well established 100-year old firms like Henry Davis York, DibbsBarker and TressCox merging with larger firms," the report noted.
“Some of the factors underpinning these structural changes include increased competition for clients, continued growth of in-house legal teams, higher fixed costs, the expansion of NewLaw alternatives, growth of LegalTech and the continued focus of the big four in the legal sphere.”
The report noted firms that “strategically accounted for these pressures in the preceding 3–5 years remained ahead of the curve, while others have had to quickly pivot their strategic direction, in some cases successfully, and in others less so”.
The 2018 State of the Legal Market – Australia white paper also discussed the role of legal tech in the in-house market and how general counsel and their teams are seeing the benefits from its adoption.
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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