Procurement’s role in buying legal services keeps evolving. Three studies on legal procurement (2011, 2012, and 2014) clearly demonstrate that procurement practices gain more and more influence on the category. In 2011, legal procurement was limited to a small number of very large companies, almost exclusively from the financial services sector and the pharmaceutical industry. Only three years later, many corporations turn to procurement for help in sourcing legal services. Fortune 500 corporations tend to employ their own legal procurement team while medium-sized companies hire consultants that organize legal procurement consortiums to achieve greater buying power.
Here’s what else I found:
- Procurement gets more and more influence on the legal budget
- Procurement’s role is that of the buyer, influencer, and gate keeper
- Procurement is moving into higher-value legal services
- Procurement expects significant discounts
- Procurement’s tools include negotiations, reverse auctions, and billing guidelines