New Report Shows 3 Reasons Why Most Big Law Firms Will Increase Hourly Rates

New Report Shows 3 Reasons Why Most Big Law Firms Will Increase Hourly Rates 2

A new research report shows that most Big Law firms will increase their hourly rates in 2023 for three, key reasons.

The 2003 Law Firm Hourly Rate Report details average hourly rates by individual law firms, rather than aggregating groups of law firms with disparate pricing structures, such as those found in various surveys, peer services and e-billing reports.

The report is from ResearchandMarkets.com.

The three reasons outlined in the report include –

1) large law firms continue to consolidate thereby concentrating expertise while also reducing supply

2) Billing restrictions by Corporate Counsel are still active and in place and the most effective tool for law firms to increase revenue and profitability is the hourly rate and

3) Most large law firms are very diversified in terms of practice areas and industry strength and can weather changes in the economic landscape better than smaller law firms which have fewer practice areas and more limited geographical footprints

Law firm billing practices have become increasingly significant as alternative billing arrangements continue to grow in use by many old and \’new law\’ firms.

Many firms have moved away from the traditional billing method or model and looked at innovative ways to bill, partly as a result of digitization alongside the demand for price certainty and transparency from clients.

These new pricing models dubbed alternative fee arrangements, or AFAs, also support a better work-life balance for lawyers, something that has been causing mass resignations of the top talent in law firms, and even some lawyers leaving the profession altogether.

But the hourly billing arrangement continues its reign as the principal method of billing, notwithstanding the increases touted in reports such as those produced by ResearchandMarkets.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top