Page 176 - 2019 - Leaders in Legal Business (k)
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in-sourcing is not the long-term solution. GCs looking at innovative ways to manage their
resourcing gaps, especially at the mid- to senior-end of the market, have started to lock in deals
with ALSPs to resource and manage a pool of senior talent to support their legal and commercial
teams on an ad hoc basis. This model provides ongoing flexibility and bespoke outsourcing, which
can be aligned with business goals.

No two in-house teams have the same operating model, so each one will generally require
a bespoke solution. Here are a few examples of how it works for clients with different
requirements.

Example 1: FTSE 250 company would like to reduce their headcount, especially
their senior talent pool; currently the total in-house team >400. The company retains
an ALSP to provide flexible senior in-house resource on a continuous flexible basis
to scale up and down as and when deals come through. The ALSP is able to manage
both the projects and junior members of the team. A project manager oversees work
allocation / work undertaken by the external team to ensure the pipeline always fits
with the business goals and that the external team is working with the customer to
ensure efficiencies in delivery of service and, ultimately, cost savings.

Example 2: Company with <5 in-house lawyers use the ALSP as an extension of
their in-house legal team. The ALSP in-house lawyer trains on the company
processes and is able to slot in as and when required both to help with the day to
day, but also on projects operating as a flexible extension of the internal team.

Example 3: FTSE 500 company with an in-house team of >150 is looking to reduce
their external legal spend but would like to continue to work with their existing law
firm panel. The ALSP is able to provide consistent senior level support at a
competitive AFA (alternative fee arrangement) and at partner / senior in-house
lawyer level. They work directly with the law firm’s customers and their in-house
legal teams. The ALSP lawyers work with the associates / junior lawyers either
within the in-house legal teams or in the traditional law firms for support as
required. This is true collaboration between in-house legal teams, ALSPs and
traditional law firms to provide an effective customer solution.

Managing external legal costs – look farther than your panel

The lack of transparency regarding costs is a key concern for in-house teams and a key
driver for in-sourcing.

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