Axiom Helps In-House Legal Teams Mitigate Impact of Annual Law Firm Rate Increases

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Oct 29, 2024, 09:30 ET

With law firms again raising rates from 5.6% to 13%—reportedly the highest rate increases the industry has seen in years—Axiom continues to help clients save up to 50% over law firm rates for the same work, with the same or better quality

NEW YORK, Oct. 29, 2024 /PRNewswire/ -- This year marks a decade¹of steady law firm rate inflation, with worked rates charged to corporate in-house teams rising on average between 5.6%² to 13%³ for next year. Moreover, smaller and midsize firms are now following the aggressive rate hikes led by larger firms, with rates rising faster than previous years due to strong demand in counter-cyclical practices such as litigation, as well as a resurgence in general corporate demand, as reported by Thomson Reuters (TR).⁴

David McVeigh, Chief Executive Officer, Axiom

"Can you imagine receiving a letter from your law firm that announces a rate decrease for 2025," asks David McVeigh, CEO of Axiom. "It's inconceivable. As we approach the new year, it's nearly certain GCs and CLOs are getting notices from their law firms with significant rate increases. Axiom can help. We will continue to set the standard for value in legal services with high-quality legal talent that boosts in-house teams' capacity and expertise across over a dozen practice areas and four global regions—at rates up to 50% less than what their law firms charge, with comparable talent for exactly the same work."

This year also saw Axiom dramatically increase its range of offerings to give in-house teams more options to redirect the work they would typically send out to high-cost law firms. Now clients can take greater advantage of Axiom's low-overhead, high-quality model for secondments, recruitment solutions, specialized advice, large projects, litigation services, and fractional GC services for companies of all sizes, including PE-backed, VC-funded, and high-growth small businesses.

RISING LAW FIRM RATES FUEL PARTNER PROFITS, NOT CLIENT VALUE

According to a September study from Thomson-Reuters, law firm rate hikes are a key or even "the" driver of growth in law firm profits. Looking at 2024, TR found worked rates grew an average of 6.5% to a high of 8.4%. Law.com reported even higher increases coming, stating "more big firms are going to approach hourly rates of $3,000 for partners and $1,000 for associates," with Am Law 25 to 30 firms issuing "standard" [sic] rate increases of 10% to 13% in the new year."

"Demand for high-quality in-house legal services work is increasing," McVeigh said. "But unlike law firms, our model doesn't exploit clients with big rate hikes that serve primarily to enhance equity partner payouts. We're helping in-house teams cut legal spend up to 50% compared to law firms—with legal talent that 90% of our clients say is equal to or better than top-tier law firms. Axiom gives legal clients a cost-effective 'third way' to get work done, saving them the expense of sending work to Big Law, and giving them the ability to augment their in-house teams without adding FTEs, reducing burnout and maximizing productivity."

For more information or to talk to an Axiom representative, visit https://www.axiomlaw.com. For more information about Axiom, please visit our website, hear from our experts on the Inside Axiom blog, network with us on LinkedIn, and subscribe to our YouTube channel.

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About Axiom

Axiom is where high-caliber legal talent meets full-service law firm work. We invented the alternative legal services industry 24 years ago and now serve more than 1,500 legal departments globally, including 68% of the Fortune 100, with 95% client satisfaction. Axiom gives small, mid-market, and enterprise clients a single trusted provider who can deliver a full spectrum of legal solutions and services across more than a dozen practice areas and all major industries at rates up to 50% less than national law firms. To learn how Axiom can help your legal departments do more for less, visit axiomlaw.com.

¹https://www.thomsonreuters.com/en-us/posts/legal/law-firm-rates-report-2024²https://www.thomsonreuters.com/en-us/posts/legal/law-firm-rates-report-2024³https://www.law.com/americanlawyer/2024/09/24/senior-partners-approach-3000-an-hour-as-more-billing-rate-hikes-expected-in-2025⁴https://www.thomsonreuters.com/en-us/posts/legal/law-firm-rates-report-2024

SOURCE Axiom Global Inc.