BigHand is excited to announce its latest research on legal pricing and budgeting. BigHand has conducted annual surveys gathering responses from over 800 senior legal professionals over the last four years. This in-depth analysis provides a year-over-year view of the most talked about data points from previous research reports alongside data gathered, but not yet released, from 2024.
The insightful analysis sheds light on trends in legal pricing strategies, matter budgeting practices, and training lawyers on commercial awareness. The research also provides a comprehensive look at how firms have responded to changing market dynamics and client demands for more financial transparency through adding dedicated resources and technology with expert analysis from BigHand industry experts and Sally Swift, Director of Global Legal Operations & Innovation at NBCUniversal.
Sally comments on the trends, “For me, when working with our law firms, I am not just seeking transparency on rates, I also want to understand the stages of the matter and the costs associated, up front. It’s also crucial for me to understand how a firm is evolving to drive greater efficiencies through technology and greater fairness when it comes to DEI and who is being allocated the work. We’ve seen firms struggle to produce relevant data for this when they don’t have the right technology and reporting in place.”
Key findings in “Trend Analysis for Legal Pricing and Budgeting” from BigHand include:
- 91% increased pricing last year and 86% will increase it again with a fifth of respondents expecting to raise prices between 41-60%
- In 2024, 48% of firms saw an increase in client demand to demonstrate the value of their investment
- Only 33% of law firms provide dedicated training to associates on key financial metrics
- 75% confirm there’s potential to introduce more AFA’s to meet client demand
The data also shows a small but steady increase in firms hiring dedicated pricing, data analyst and finance systems resources with expertise aligned to better optimization of pricing strategies & improved profitability. Law firms are teaming these expert resources together with the education of lawyers to build profitable long-term client engagements.
These changes require accessible, timely financial data that provides firms with the insight they need to be able to these new dedicated resources and provide clients with more financial transparency. With advancements in legal-specific pricing tools that allow firms to create and track matter budgets and price for profit quickly and easily, law firms can make data-driven decisions and provide better client service.
Gain more insight into the trends BigHand has seen in its years of gathering data on legal pricing and budgeting by accessing the full analysis here.
