Recent BTI Consulting Group Survey Shows.
The BTI Consulting Group (out of Wellesley, MA) has reported that 31% of law firms participating in alternative billing arrangements are making higher profits through these arrangements than with the billable hour, in its new survey of firm leaders and corporate counsel. Such participating firms report paying closer attention to internal procedures and engaging in regular discussions with the client in alternative billing arrangement contexts.
If one goes back to 2009, Pfizer estimated saving 15-20% on outside legal fees through flat-fee arrangements; Cisco was using fixed fees or alternative arrangements for about 80% of its legal work; American Express did not have any firm tell them they would not consider alternative arrangements; lawyers reported average costs savings of 15% from using alternative billing arrangements; and 63% of 370 in-house lawyers planned to increase their use of alternative billing arrangements.