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CCCA_V4No4_ClientRevolution-FIN.qxd:CCCA_V1No1_DriversSeat-FIN.qxd 10/27/10 3:15 PM Page 29 Feature Vivala revolución! A perfect storm has struck the law depart- ment-outside counsel relationship, growing from massive forces like globalization, technological advances, low-cost A re law firms finally waking up to competition and the the reality that they’re in the grip of a Great Recession. client revolution? Corporate counsel It wasn’t that long ago when corpo- rate clients,calling in outside counsel to have never had such help with a major transaction or case, a golden opportunity routinely braced themselves for expen- to shift the balance sive and unpredictable prices. Law firms started the clock from the of power with law moment the file was assigned and firms, and more are stopped it when the pen dropped — taking advantage no questions asked. Litigators laughed at the very notion of setting budgets, every day. B Byy YYvveess FFaagguuYY let alone tracking them. They’re not laughing now. These days,not only are corporate clients demanding value,but in growing numbers,they’re getting what they ask for.This gradual but unmistakeable trend is changing everything about the business of law, from the way firms manage their work to how they bill their clients. “There’s been a major shift over recent years,whereby clients have begun to real- ALENA GEDEONOVA Increasingly, in-house legal departments are demanding greater value, greater ize that they have greater control and greater buying power over the law firms they use,”says Paul Smith,a London-based partner at international firm Eversheds LLP and chair of its regulatory practice.“And I think the recession has accelerated that. HIVER 2010 29