As we head into December, the thoughts of many are turning to the Holiday Period with a sense of relief and anticipation. Relief that 2009 is coming to an end; anticipation that 2010 has got to be better.
Without wishing to put a dampener on the Christmas spirit, a recent article on www.law.com will have sent quite a shiver down the spines of many lawyers in the US. And, in the UK, few will have missed the recent prediction that 2010 will see a further 5,000 lawyers losing their jobs in the City of London alone.
The www.law.com article quoted Susan Blount, the general counsel of Prudential Financial. She recently sent a letter to the 60 law firms that the insurance giant uses regularly. The letter addressed the general economy and the need to cut costs, but one announcement stuck out: Prudential informed the firms that in 2010, the company expected to pay for legal services at 2008 hourly rates. It wasn't a request as much as a take it or leave it deal.
Blount is reported to have said: " "We find ourselves at an economic crossroads in 2009. We have a special obligation to the company to be smart purchasers of legal services. We're not trying to undermine the economics of law firms. We are looking for the right way to get high quality work for our company at a reasonable price."
She went on to say that she is open to alternative fees and fixed rates, and she's looking to give more business to mid-sized firms.
MSI Global Alliance (www.msiglobal.org) comprises exclusively high quality, mid-sized firms - both lawyers and accountants. And although there is no doubt that some mid-sized firms have suffered in 2009, there is also a recognition that the seismic shifts that occurred in 2009 could well prove to be good news for those firms that are ready and sufficiently nimble-footed to capitalise on the new opportunities that are available.
Part of that readiness can be achieved by being part of the right global organisation. And judging by the surge in applications that we have received from firms over the last quarter of 2009, many are recognising that the network/association route is one way to ensure that they are ready to meet the challenges ahead and compete head on with the more traditional providers of professional services to the larger client.
Roll on 2010.
James Mendelssohn (jmendelssohn@msiglobal.org)
Chief Executive, MSI Global Alliance
Posted by: |